Zhiyi Bio Completes RMB 300 Million Series B Financing to Accelerate Clinical Development of Proprietary Live Biotherapeutic Products

VCBeat (WeChat: vcbeat) has learned that Guangzhou Zhiyi Biological recently completed a RMB 100 million B++ round of financing, with investments from SDIC Venture Capital, Guangzhou Development District Fund, and Heli Chuangxing Group. The funds will be primarily used to accelerate the clinical development of the company’s new drug pipeline.With this, ZYBio has completed its Series B financing round, raising RMB 300 million within 18 months.

ZYBio is a China-based, globally oriented innovative drug R&D enterprise in the clinical development stage. As a leader in live biotherapeutic products (LBPs) in China, ZYBio possesses a comprehensive technological and industrialization platform spanning from strain discovery to LBP development. The company has achieved significant industry milestones, including advancing China’s first LBP drug utilizing a novel bacterial strain into clinical trials and securing China’s first approval for an LBP to be used in clinical research for oncology. Currently, SK08 is the most rapidly advancing LBP drug in ZYBio’s pipeline in China; its Phase II clinical trial for irritable bowel syndrome with diarrhea (IBS-D) is scheduled to be completed by the end of this year. Additionally, the Phase Ib/II clinical trial evaluating SK08 in combination with PD-1 inhibitors for the treatment of advanced solid tumors has been initiated. Regulatory registrations with the FDA and NMPA for several other pipeline candidates are underway, with multiple products expected to enter clinical stages sequentially next year. The successful completion of this financing round has laid a solid foundation for subsequent clinical trials.

SDIC Venture CapitalIt is indicated that in recent years, with the continuous enrichment of biological research findings related to gut microbiota, live biotherapeutic products (LBPs) are poised to become a key category of pharmaceuticals in the future. As the first company in China to obtain clinical trial approval for live biotherapeutic products and currently the one with the most advanced clinical progress, ZYBio has addressed critical technical challenges during its R&D process, including strain discovery, druggability studies, and pharmaceutical development. The company has established a comprehensive Good Manufacturing Practice (GMP) system for live biotherapeutic products, capable of meeting the requirements at various stages of drug development, thereby securing a leading position in China in terms of basic research, industrialization, and clinical capabilities for LBPs. Since our initial investment, the company has made rapid progress in clinical development, pipeline reserves, and team building. We believe that ZYBio will accelerate the clinical development of new drugs in the future, further solidifying its landmark status in the field of live biotherapeutic product development in China.

Guangzhou Development District FundIt indicates that China’s live biotherapeutic products (LBPs) sector is on the verge of an explosive growth phase. As a pioneer in the domestic LBP field, ZYBio ranks among the global leaders in R&D progress. The company has established an independent and comprehensive industrialization platform spanning from preclinical development to Investigational New Drug (IND) applications, backed by a robust pipeline of clinical candidates and preclinical assets. ZYBio is poised to emerge as a global leader in the LBP industry, driving the vigorous development of the regional industrial chain.

Heli Chuangxing GroupStatement: We have always been interested in investing in innovative companies that drive human progress and possess hard-core technologies. The field of live biotherapeutic products, where ZYBio operates, represents the forefront of global biotechnology development. The ZYBio team’s excellent management and R&D capabilities have efficiently accelerated the rapid advancement of its product pipeline. We believe that, as a leader in China’s live biotherapeutic products sector, ZYBio will continue to exert strong momentum and bring more positive breakthroughs to the industry’s development.

As the exclusive financial advisor for this transaction,Start Point AdvisorsStatement: The role of microorganisms in human health is becoming increasingly prominent, and the field of live biotherapeutic products (LBPs) has garnered significant attention. ZYBio is a company characterized by perseverance, resilience, focus, and a broad perspective. As a domestic leader in this field, the company has demonstrated strong execution capabilities and industry resources, enabling it to be the first to advance its self-developed products into the late stages of clinical development. We are honored to once again support ZYBio in completing its new round of financing.

SDIC Venture Capital, established in 2016, is a private equity fund management company specially set up by China State Development & Investment Corp. (SDIC) on a market-oriented basis. Its mission is to implement the national innovation-driven development strategy, deepen comprehensive strategic cooperation with the Ministry of Science and Technology, and accelerate the transfer and commercialization of national scientific and technological achievements. Through platforms such as the National Science and Technology Major Project Achievement Transformation Fund, SDIC Greater Bay Area Scientific and Technological Achievement Transformation Fund, SDIC Beijing-Tianjin-Hebei Scientific and Technological Achievement Transformation Fund, SDIC High-Tech (Shenzhen) Venture Capital Fund, and SDIC (Ningbo) Scientific and Technological Achievement Transformation Fund, SDIC Venture Capital remains committed to its investment goals in achieving technology transfer. It focuses on key sectors including advanced manufacturing, electronic information, biopharmaceuticals, and materials and energy, while aligning with national regional development strategies in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area. The company continuously promotes breakthroughs in independent innovation of core key technologies and strives to build a robust investment ecosystem for the transformation of scientific and technological achievements.

Guangzhou Development District Industrial Fund Investment Group Co., Ltd. was established in July 2017 with a registered capital of RMB 1.85 billion. It is a state-owned enterprise invested and established by the Administrative Committee of Guangzhou Development District and under the first-level supervision of the State-owned Assets Supervision and Administration Bureau. Positioned as a district-level fund-based investment and financing platform, the Group is responsible for coordinating the input of policy-driven funds across the district, guiding the participation of financial and social capital, and jointly establishing various fund-of-funds structures. It conducts equity investments across the entire chain, including early-stage, venture capital (VC), private equity (PE), and Pre-IPO stages, covering investment areas such as major industrial projects, industrial park construction and operation, and urban renewal. The Group actively leverages capital to attract investment and integrates investment with recruitment efforts, extensively aggregating financial and project resources to promote economic development and industrial upgrading in Huangpu District and Guangzhou Development District. Portfolio companies such as Fangbang Electronics, Jet Biofil, Labway Corporation, Cambricon Technologies, and Sekuimede have successfully achieved initial public offerings (IPOs).

Guangzhou Heli Chuangxing Group Co., Ltd., with its predecessor established in 2003, adheres to the development philosophy of “Cooperation, Mutual Benefit, Innovation, and Business Prosperity.” The company consistently implements a “One Core, Diversified” development strategy. Its wholly-owned subsidiaries and equity-participated companies collaborate synergistically across multiple business segments, evolving into a diversified holding company centered on commercial operations, integrating real estate development, commercial operation, fund investment, and intelligent systems into a comprehensive business framework.

Start Point Advisors is a financial advisory firm specializing in the healthcare and medical industry. Established in 2020, its team members hail from renowned institutions within the sector and possess extensive professional experience. The company currently maintains offices in Beijing, Suzhou, and Guangzhou. Since its inception, Start Point Advisors has achieved comprehensive coverage across the healthcare and medical landscape, earning a strong professional reputation and acclaim within the industry. It stands as one of the most representative emerging investment banks in China’s healthcare and medical sector.