Shannon Enthalpy Biotech Completes Tens of Millions RMB Angel Funding to Accelerate Full Domestication of Core Raw Materials for Molecular Diagnostics

VCBeat (WeChat ID: vcbeat) has learned that Entropy Enthalpy Theory (Shenzhen) Biotechnology Co., Ltd. recently announced the completion of its tens-of-millions-level angel financing round. This round was exclusively invested by Yuansheng Venture Capital. The funds will be primarily used for process development and scaled production of industrial-grade molecular diagnostic enzymes, as well as the establishment of mammalian cell expression systems and cell-free expression systems.

Entropy-Enthalpy Theory (Shenzhen) Biotechnology Co., Ltd. was established in August 2021. Leveraging its proprietary core technologies and an independently developed integrated fermentation and purification platform, the company is dedicated to the development and production of high-performance, highly stable enzymes for molecular diagnostics, providing technical services and innovative process development for new drug discovery and novel biological products.

Among these, the development of industrial-grade enzymes for molecular diagnostics has overcome key technical barriers, with increasingly refined production processes capable of supplying hundreds of millions of doses of core raw materials for molecular diagnostic reagents annually. The recombinant protein expression and purification platform based on prokaryotic expression systems achieves an integrated combination of high biological functional activity, cost-effectiveness, and scalable production. Meanwhile, the membrane protein expression and purification platform, leveraging mammalian cell expression systems, cell-free expression systems, and membrane protein–detergent systems, addresses the technical challenges associated with the difficult expression of membrane proteins and the acquisition of their native conformations.

Successfully developed: industrial-grade antibody-modified Taq polymerase, chemically modified Taq polymerase, heat-labile UDG enzyme, reverse transcriptase, murine RNase inhibitor, and compatible buffers for various application scenarios.

Zhang Lei, Founder and CEO of Shangyanlun Bio, stated that China’s market for enzyme raw materials used in molecular diagnostics has reached a scale of billions of yuan, yet it remains dominated by imported brands. Due to their later start, domestically produced enzymes still have significant room for improvement in terms of product diversity and brand influence, while their stability and quality control capabilities also need further enhancement. By leveraging independently developed core technologies and platform infrastructure, Shangyanlun Bio has broken through key technical barriers, with product performance on par with that of international manufacturers. The company is committed to providing customers with high-performance, stable-quality enzyme raw materials, while striving to localize the enzyme supply chain. It aims to rapidly increase the domestic market share and achieve import substitution for enzyme raw materials, thereby addressing the long-standing shortfall of import monopoly in the Chinese market.

Dr. Lin Yi, Managing Partner of Yuansheng Venture Capital, stated: “COVID-19 testing has significantly accelerated the development of the molecular diagnostics industry; however, from a global perspective, the penetration rate of molecular diagnostics remains below 30%, indicating substantial room for future growth. We have made extensive investment arrangements in molecular diagnostic reagents and instruments, and we continue to monitor investment opportunities in the upstream sector of molecular diagnostics. The implementation of centralized procurement policies for in vitro diagnostics (IVD) has imposed higher requirements on corporate cost control and quality improvement. The team at Shanghanlun demonstrates strong execution capabilities and has proven experience in successful product development. We are pleased to collaborate with Shanghanlun Biotech to jointly promote the development of the upstream molecular diagnostics sector and provide high-quality raw material products and services to molecular diagnostics companies.”

Yuansheng Venture Capital is an investment firm focused on the early and growth stages of the healthcare sector, headquartered in Suzhou BioBAY with a global reach. To date, it has invested in over 140 outstanding companies in the life and health sectors, covering four key areas: novel drug development, medical devices, in vitro diagnostics and precision medicine, as well as healthcare services. The firm has achieved substantial investment returns, with 13 of its portfolio companies listed on capital markets such as the Hong Kong Stock Exchange and the STAR Market. Yuansheng Venture Capital has been repeatedly recognized as one of the Top 10 venture capital funds in China’s healthcare sector and as one of the most active healthcare investment institutions in China. By bringing together seasoned professional investors and a team of world-class scientific advisors, Yuansheng Venture Capital possesses extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry and beyond. Leveraging its professionalism, focus, and abundant industry resources, the firm is committed to becoming one of the most successful healthcare and pharmaceutical venture capital funds in China.