Synthgene Bio Secures Over RMB 300 Million in Series A+ Financing to Advance Upstream Life Science Raw Materials Solutions

VCBeat (WeChat ID: vcbeat) has learned that Jiangsu Synthgene Biotechnology Co., Ltd. (hereinafter referred to as “Synthgene”) recently completed its Series A+ financing round. The round was co-led by ClearPool Capital and LYFE Capital, with existing shareholders Sherpa Capital and Legend Star continuing to increase their investments. The previous Series A1 round was jointly invested by Ruihua Holdings, Sherpa Capital, and Legend Star. The cumulative funds raised from these two rounds exceeded RMB 300 million. Life Capital served as the exclusive financial advisor for this financing.

Dr. Tong Kun, the company’s founder, stated, “We are deeply honored to secure investment from renowned domestic and international institutions, including Qichi Capital and LYFE Capital (Zhouling Capital), and we extend our sincere gratitude to our existing investors, Sherpa Partners and Legend Star, for their multiple rounds of increased holdings. This financing represents a strong endorsement by investors of Synthgene Biotechnology’s team innovation and execution capabilities. This round of financing”Primarily used for Synthgene’s further investment in the development of raw materials for gene and nucleic acid therapeutics and over-the-counter (OTC) home self-testing products, expansion of its talent team, and commercialization of its products in overseas markets.

Synthgene Biotechnology focuses on sectors with high technical barriers, continuously seeking untapped incremental markets while pursuing differentiated business strategies in mature markets to optimize its R&D platform. The COVID-19 pandemic accelerated the rapid development of gene and nucleic acid therapeutics, including mRNA vaccines, as well as the over-the-counter (OTC) home self-testing market. mRNA vaccines represent a high-barrier incremental market, whereas for antigen-antibody testing—a mature technology—Synthgene has avoided the clinical medical market and instead targeted the differentiated segment of home self-testing.

As a supplier of high-value-added upstream raw materials for mRNA vaccines with core technologies, Synthgene has currently developed key mRNA vaccine raw materials such as nucleotides, modified nucleotides, and chemically capped analogs. These products ensure high transcriptional efficiency of mRNA at the biological level while maintaining high chemical purity. Meanwhile, Synthgene is vigorously developing core upstream raw materials for small nucleic acid drugs, including phosphoramidite monomers and GalNAc, to strategically position itself in the rapidly growing market for gene and nucleic acid therapeutics.

As antigen-antibody testing products shift from clinical settings to the home self-testing market, and from B2B to B2C models, the exponential growth in after-sales service demands has necessitated higher standards for sensitivity and specificity. Synthgene Biotechnology has developed an efficient antibody discovery platform, enabling the rapid establishment of a comprehensive diagnostic antibody cell library. This library provides antibodies with high sensitivity and specificity, thereby enhancing the core competitiveness of its products.

In the upstream core raw materials sector for mRNA vaccines, under excellent process standards and a comprehensive quality control system, ShenJiangsu Synthgene Biotechnology Co., Ltd. has established an international, high-standard GMP manufacturing base to ensure customers receive high-quality raw materials. It is one of the few domestic companies capable of providing kilogram-scale GMP-grade oligonucleotide and mRNA raw materials. The company supplies 80% of China’s upstream mRNA raw material market, with a production capacity sufficient to support 5 billion doses of mRNA vaccines.

Leveraging high-quality, self-produced upstream raw materials, our OTC self-test kits deliver superior performance and hold export qualifications. Our product portfolio spans numerous fields, including infectious diseases, drug abuse testing, and eugenics, with products exported to over 30 countries such as Germany, Japan, the United Kingdom, and Peru, earning widespread acclaim in overseas markets. Following the introduction of China’s policy on home-based COVID-19 self-testing, the Novel Coronavirus (2019-nCoV) Antigen Test Kit (Colloidal Gold Method) developed by Jiangsu Synthgene Biotechnology Co., Ltd. received approval from the National Medical Products Administration (NMPA) on April 1, 2022 (Registration Certificate No.: Guo Xie Zhu Zhun 20223400427) for official market launch. This milestone contributes to the rapid screening of SARS-CoV-2 and supports global efforts to combat the COVID-19 pandemic.

Qian Ranting, Partner at Qingchi Capitalstated: “We recognize the scientific exploration and business development undertaken by Dr. Kun Tong’s Synthgene team in the upstream supply and application of life science raw materials. The company has built a solid technological foundation, and its team is vibrant and dynamic. We believe that, with time, Synthgene has the potential to become a strong competitor capable of challenging international manufacturers in China’s upstream life science supply and application sector.”

“Qingchi Capital boasts extensive investment experience and a broad footprint in China’s healthcare and pharmaceutical industry, with more than half of its portfolio companies operating in the biotechnology R&D and manufacturing sectors. We are confident that Qingchi can bring valuable industry resources and commercial opportunities to Synthgene. Meanwhile, we also hope to share growth insights from other outstanding portfolio companies with Synthgene’s management team, helping the company continuously improve its corporate governance. In addition, Qingchi Capital maintains investment operations in both the primary and secondary capital markets, which can help portfolio companies stay abreast of capital market dynamics and optimize their financing strategies.”

Wang Yinan, Investment Director at LYFE Capital (Zhouling Capital)“It stated: ‘As downstream industries such as biopharmaceuticals and molecular diagnostics continue to develop rapidly, the market for key upstream raw materials in life sciences is gradually entering a period of explosive growth. The trend toward localization of the entire industry supply chain is becoming increasingly clear; however, domestic upstream platform enterprises that master core technologies remain extremely scarce. The industry as a whole has very broad development prospects in the future.’”

“Synthgene Biotechnology is dedicated to developing and providing comprehensive solutions for upstream raw materials in the life sciences sector. The company has experienced rapid growth in recent years, leveraging its strong development capabilities to build a robust portfolio of technical products in the fields of diagnostic upstream raw materials and nucleic acid drug raw materials. It has quickly established industrial-scale production capacity, with product quality widely recognized by domestic and international customers, leading to rapid order growth. The founding team possesses deep industry expertise and strong overall execution capabilities. We are highly optimistic about the company’s potential to become a leader and a platform-oriented enterprise in the upstream raw materials industry for life sciences. Synthgene Biotechnology shares significant synergistic value with LYFE Capital. LYFE Capital will leverage resources within its global ecosystem to collaborate with the company in expanding into overseas markets, aiming to build a globally recognized platform enterprise for upstream life science raw materials.”

Xiaerba Founder/Managing Partner Xing ChengIt stated: “In recent years, catalyzed by factors such as the pandemic, raw material supply chain issues have become a critical concern keenly felt by innovative R&D enterprises in China. Ensuring the stable supply and localization of core upstream materials for the life sciences industry is key to safeguarding the development of Chinese innovative enterprises, serves as an important prerequisite for the overall upgrading of China’s biopharmaceutical industry, and represents an inevitable trend.”

“Synthgene Biotechnology boasts a young, vibrant, and energetic team. Under the leadership of Mr. Tong, the management team demonstrates forward-looking industry insights, coupled with strong decision-making and execution capabilities. Over the approximately one year of our engagement with the team, Synthgene Biotechnology has undergone near-daily transformations within our view. The company has achieved breakthrough progress in the R&D, production, and sales of core raw materials across multiple specialized fields, including antigens and antibodies, nucleic acids, and cell and gene therapies.”

Lian Leyao, Executive Director of Legend StarIt stated: “With the rapid development of China’s life sciences and in vitro diagnostics (IVD) sectors, demand for upstream raw materials in the industry chain has expanded correspondingly. Currently, high-barrier key raw materials remain dominated by import monopolies. In particular, as nucleic acid therapeutics represented by mRNA and siRNA are poised to enter the market, key raw material suppliers occupy a critical position in the value chain. Consequently, upstream life science raw materials hold significant appeal for both primary and secondary markets.”

“With the wide variety of IVD and nucleic acid raw material categories and the rapid technological iteration in downstream research, it is essential for the team to possess efficient, cross-disciplinary R&D capabilities. Synthgene has independently mastered a series of platform technologies, becoming one of the few companies in China capable of supplying key raw materials for RNA drugs at scale. Meanwhile, the team has seized opportunities in different niche sectors such as IVD and RNA, achieving phased customer cultivation in both domestic and international markets, which demonstrates strong market development and commercial capabilities. Moving forward, Legend Star will continue to support the company by facilitating access to resources in capital, strategy, and industry.”

Li Shengwen, Managing Director of Life Capitalstated: “Under the impact of the pandemic, the markets for COVID-19 testing and mRNA vaccines have come to the forefront, drawing significant attention to upstream raw materials in the life sciences sector. Seizing this opportunity, the industry has rapidly achieved domestic substitution in China, while export proportions to overseas markets have far exceeded those of previous years. In the biopharmaceutical field, only by establishing global sales channels can companies emerge as international giants. Therefore, we hold this sector in high regard and hope that upstream companies will leverage the export channels for COVID-19 reagents to swiftly expand foreign trade in upstream life science raw materials, thereby fostering the emergence of a cohort of international enterprises.”

“As the exclusive financial advisor for this financing round, we are honored to have witnessed Synthgene’s rapid development. Leveraging the combined expertise of its seasoned chemistry and biology teams, Synthgene has established a high-efficiency antigen-antibody platform, an upstream raw materials platform for mRNA, and a comprehensive regulatory approval system for diagnostic kits in both domestic and international markets. These capabilities have enabled the company to achieve a leading position in its niche sector within a remarkably short timeframe.”

Headquartered in Hong Kong, China and Shanghai, Lake Bleu Capital is an investment platform focused on the healthcare sector, with assets under management totaling billions of US dollars. Its secondary market USD fund is one of the largest healthcare-focused secondary market funds in Asia. Lake Bleu Capital is also active in private equity investments within China’s healthcare industry, having successfully invested in more than 50 high-quality growth-stage companies.

Qingchi Capital has cultivated deep expertise in the healthcare and pharmaceutical sectors for many years, having begun to focus on and invest in China’s upstream life sciences tools and raw materials industry as early as 2018. In recent years, the domestic biopharmaceutical and life sciences fields have witnessed explosive growth, naturally prompting local enterprises to engage in comprehensive competition, including in cost control. The localization of production inputs is an essential pathway for cost management and represents a critical segment of China’s pharmaceutical value chain that urgently requires breakthroughs. Abundant capital will facilitate R&D investment in this sector, substantially driving the improvement and catch-up of domestically produced technologies.

LYFE Capital (Zhouling Capital) is a specialized global investment platform dedicated to value creation in the healthcare sector. We partner with exceptional healthcare companies across various stages of development that possess high-growth potential, providing them with financial support to accelerate their growth and maximize their potential in a rapidly evolving market landscape. Leveraging our team’s deep insights into the healthcare industry and extensive professional investment experience, we flexibly adapt our investment strategies to meet the urgent needs of each portfolio company. Our specialized team and global perspective enable us to cover markets worldwide, with a particular focus on outstanding healthcare enterprises in Greater China and North America, facilitating seamless international cooperation through value creation.

Sherpa Capital is a specialized fund focused on early-stage healthcare investments. Adhering to an investment philosophy centered on building industry ecosystems, the firm constructs its portfolio by targeting unmet critical medical needs, leveraging deep expertise in the treatment of major diseases, and strategically positioning itself across the industry’s vertical depth as well as its upstream and downstream sectors. By actively sharing operational experience and forward-looking insights spanning the entire industry chain with portfolio companies, the team proactively fosters internal and external synergies. This approach helps companies achieve rapid growth in both business performance and valuation, while securing leading positions in their respective niche markets. From 2011 to 2021, through four fund vintages and the rigorous cultivation of over 100 healthcare projects, Sherpa Capital has had the privilege of partnering with numerous outstanding entrepreneurs, growing together along the journey.

Over the past four years, Sherpa Capital has invested in more than 80 innovative healthcare companies, with extensive project portfolios across various subfields of new drug development. We believe this will foster robust supply chain synergies with Jiangsu Synthgene Biotechnology Co., Ltd., driving mutual growth.

Legend Star is one of the earliest venture capital firms to systematically invest in the healthcare sector, having identified it as a key focus area since 2010. In this domain, Legend Star has structured its strategic layout around two major pillars: “Biopharmaceuticals” and “Digital Health.” The biopharmaceutical segment encompasses innovative drugs, gene technologies and services, diagnostics, and high-value consumables. Digital health refers to opportunities that leverage technologies such as artificial intelligence, big data, and robotics to upgrade and empower various aspects of the healthcare ecosystem, including drug R&D, medical devices, healthcare services, insurance payment, and health management.

To date, Legend Star has invested in over 100 high-quality healthcare projects, including Kintor Pharmaceutical (9939.HK), Burning Rock Biotech (NASDAQ: BNR), Axonics (NASDAQ: AXNX), Keymed Biosciences (2162.HK), PegBio, Coyote Bioscience, Qihan Biotechnology, GoCell Bio, Deepwise Healthcare, Edge Medical Robotics, and Jiayin Biologics.

Life Capital is committed to its mission of “empowering leaders in the health industry.” As a leading financial services institution in China focused on the broader healthcare sector, it offers investment banking and venture capital services. Its team comprises professionals from renowned investment banks, academic institutions, and healthcare enterprises, bringing decades of accumulated expertise in the medical and investment and financing fields.

Over the past few years, the team has completed dozens of financing and M&A transactions in the healthcare industry, with a cumulative value reaching tens of billions of RMB. These transactions span various sub-sectors, including new drug R&D, medical devices, diagnostics, consumer healthcare, healthcare services, smart healthcare, and health insurance. In the Chinese Financial Advisory Firm Rankings organized by Qiming Technology, a financial big data institution, Life Capital was ranked among the Top 3 financial advisory firms in China’s healthcare sector. Additionally, at VCBeat’s “Future Healthcare 100” awards, Life Capital was honored as the “Healthcare Financial Advisory Firm of the Year.”