HuaKan Biotech Secures Nearly RMB 300 Million Series B Funding to Accelerate Industrialization of 3D Cell 'Smart Manufacturing'

VCBeat (WeChat ID: vcbeat) has learned that Beijing Huakan Biotechnology Co., Ltd. (hereinafter referred to as “CytoNiche”), a company specializing in innovative 3D cell technology, has recently completed its Series B financing round, raising nearly RMB 300 million. The round was co-led by Gaorong Capital, CICC Qide Fund under CICC Capital, and the CICC Qiyuan National Emerging Industry Venture Capital Guidance Fund. Follow-on investors included Sinovac, CNBG, Hongtai Fund, Aibo Qingshi, Yuanhui Capital, and Yijing Capital, while existing investors such as Bencao Capital and DT Capital Partners, along with a well-known international life sciences industry group, continued their participation.

It is understood that this round of financing will be used for R&D upgrades, expanding the production capacity of core products, enriching the product portfolio and intelligent integrated solutions, and expanding international business and CDMO services.

Founded in 2018, CytoNiche was established by the research team of Professor Du Yanan from the School of Medicine at Tsinghua University. Emerging from the Tsinghua campus, this team is dedicated to building an original 3D cell “intelligent manufacturing” platform, providing comprehensive solutions for scalable, customized cell expansion processes based on 3D microcarriers, thereby addressing critical pain points in the global cell therapy industry.To date, CytoNiche has served over 100 industry-leading clients in the fields of stem cells, vaccines, gene therapy, and immunotherapy, and has established strategic partnerships with numerous medical institutions and research universities.

Microcarriers are critical consumables in biopharmaceutical manufacturing, a market long dominated by foreign manufacturers. In traditional biopharmaceutical processes, the physicochemical properties of microcarriers have not been sufficiently optimized, which has, to some extent, limited improvements in overall biopharmaceutical efficiency. As the biopharmaceutical industry enters the era of cell and gene therapy (CGT), cell-based therapies have emerged as the third pharmaceutical revolution, following small-molecule drugs and protein/nucleic acid therapeutics. Concurrently, the industry faces new demands for large-scale cell manufacturing processes.

CytoNiche’s core product, 3D TableTrix® Microcarriers, is an independently developed, pharmaceutical excipient-grade microcarrier designed for cell-based drug development. As porous microspheres with precisely controllable chemical and physical properties, they enable customized design of the cellular microenvironment tailored to specific cell types. Utilizing a specific cleavage technology, they achieve 100% cell harvest efficiency. Compliant with GMP requirements, the product has passed testing by authoritative institutions such as the National Institutes for Food and Drug Control (NIFDC) and has obtained both U.S. FDA Drug Master File (DMF) status (DMF #: 35481) and pharmaceutical excipient registration from China’s National Medical Products Administration (CDE Registration Nos.: F20210000003, F20210000496). Notably, it is the only microcarrier worldwide to have secured dual pharmaceutical excipient qualifications from both the U.S. FDA and China’s NMPA.

CytoNiche 3D TableTrix® Microcarriers

Based on 3D microcarrier cell culture technology, CytoNiche has further developed the 3D FloTrix® large-scale fully automated cell manufacturing process system. This system encompasses automated equipment such as cell culture bioreactors, cell washing and harvesting units, and extracellular vesicle (exosome) enrichment devices, as well as reagents and consumables including stem cell culture media and exosome formulations. It enables a complete closed-loop workflow from cell seeding, expansion, stepwise scale-up, gentle harvesting, washing and concentration, to final formulation and filling, meeting the demands for closed, large-scale, and intelligent production of cell therapies, cell-derived products, viruses, and proteins. Compared with traditional manual 2D cell culture, CytoNiche’s 3D large-scale “intelligent manufacturing” system helps customers reduce production space by approximately 90%, labor by 90%, reagent and consumable usage by 60%, and time costs by 60%.

CytoNiche Further Develops the 3D FloTrix® Fully Automated Large-Scale Cell Preparation Process System

After nearly four years of rapid development, CytoNiche has expanded its client base from solely cell therapy to a more diverse range of participants in the upstream biopharmaceutical sector, including gene therapy, viral vector production, and vaccine and antibody preparation. Meanwhile, the company’s business model has evolved from simple product sales to an integrated “product + service” approach, establishing a CDMO platform leveraging its proprietary technologies and product advantages. “We have found that many enterprises have strong demands for customized manufacturing, which has driven us to build a more comprehensive service chain,” said Liu Wei, Co-founder and CEO of CytoNiche, in an interview with VCBeat.

Specifically, CytoNiche’s products and services are widely applicable to upstream process development for the production of gene and cell therapies, extracellular vesicles, vaccines, and protein products. Meanwhile, they also hold broad application prospects in the fields of regenerative medicine, organoids, and food technology (such as cultured meat).

In emerging blue-ocean markets such as gene and cell therapy and regenerative medicine, CytoNiche’s microcarriers are the world’s first commercial product qualified as pharmaceutical excipients and capable of meeting the clinical application requirements in the field of cell therapy, with its overall solution leading globally. In early 2022, CytoNiche expanded its GMP manufacturing platform to 4,000 square meters, adding a new 1,200-liter microcarrier production line; its R&D and translation platform was expanded to 5,000 square meters, including a CDMO platform of over 1,000 square meters.

Meanwhile, in mature segments of the industrial chain such as vaccines, antibody drugs, and virus production, CytoNiche’s core products are becoming key raw materials and excipients that break international monopolies and drive industrial optimization and import substitution. Both cell culture capacity and virus production yields significantly outperform traditional imported products.

Regarding this latest round of financing, Professor Du Yanan, Chief Scientist at CytoNiche and a professor at Tsinghua University, stated,“The global cell industry is at a pivotal moment. We thank our existing and new shareholders for empowering CytoNiche to accelerate its journey toward realizing the vision of building a modern ‘3D Cell Intelligent Manufacturing Factory.’ We are committed to living up to the opportunities of this era and the steadfast support from all parties.”

Liu Wei stated,“At this pivotal moment for the market-oriented industrialization of CytoNiche’s core technologies, we extend our gratitude to both new and existing shareholders for their support and recognition. We observe that the global cell therapy industry is currently facing challenges in scaling up cell manufacturing, as well as issues related to cost and uniformity. CytoNiche aims to seize these industrial opportunities by continuously developing globally leading, originally Chinese products to address practical industry challenges. We strive to become a core enterprise in the supply chain for cell-based drug manufacturing and derived biological products, actively promoting the intelligent upgrading of the cell therapy industry.”

Regarding future development goals, Liu Wei pointed out, “After achieving scalable and customized cell culture, the next goal is to realize true automation, intelligence, and even unmanned operation in the production and preparation process. In the future, we expect to integrate advanced technologies such as AI, big data, and industrial automation, and work together with industry partners to propel the cell industry into the Industry 4.0 era.”

Yang Kun, Partner at Gaorong Capital, stated,“Developing the cell industry today is no longer an optional choice, but an imperative. As a leader in upstream manufacturing within the cell industry, CytoNiche leverages its core technological barriers, end-to-end process solutions, and deep understanding of market demands to deliver high-quality solutions for innovative vaccines, novel cell and gene therapies, and more, while continuously advancing the science of 3D cell culture. We look forward to seeing CytoNiche’s products and technologies applied across more life science fields and global markets, providing the industry with premium cellular ‘soil’.”

Liang Ying, Managing Director of CICC Capital, stated that,“CytoNiche’s technology stems from independent R&D conducted at a renowned Chinese university, representing a typical case of translating scientific research achievements into commercial applications in the life sciences sector during this new era. Within less than four years since its establishment, the company has achieved sales at scale, with its team’s exceptional execution capabilities leaving a strong impression. Recently, the company’s 3D cell culture technology has gradually demonstrated significant application potential in areas such as vaccine production, cell-based therapies, and exosome preparation, earning recognition from a number of benchmark clients. We firmly believe that CytoNiche can achieve the ambitious goal of establishing domestically produced, self-controlled solutions for the upstream segment of the biopharmaceutical industry!”

Yang Yue, Managing Director of CICC Capital, stated,“We are delighted to see that CytoNiche, leveraging its core technologies, has established a comprehensive product portfolio centered on 3D cell microcarriers, providing innovative solutions for large-scale cell manufacturing to leading industry clients across various sectors and gradually emerging as a leader in the upstream segment of the industry. As a national-level guidance fund, we have always prioritized life sciences as a key strategic emerging sector. We look forward to outstanding entrepreneurial enterprises represented by CytoNiche continuing to drive progress in the biopharmaceutical industry, with key core technologies spearheading high-quality industry development.”

Ms. Wang Nan, Vice President and Chief Financial Officer of Sinovac Biotech Ltd., stated that,“The vaccine industry chain is extensive and involves numerous processes, yet every link is critical to ensuring vaccine quality and safety. As an upstream enterprise in the vaccine supply chain, CytoNiche’s core products play a significant role in the production of vaccines, antibody drugs, and viruses. The recent collaboration between Sinovac and CytoNiche, formalized through a framework agreement on related products, will further advance the development of the upstream vaccine supply chain and facilitate the upgrading and transformation of China’s vaccine industry.”

Zhou Xuan, Executive Partner of Sinopharm Zhongsheng Fund and Managing Director of Jianyi Capital, stated that“CytoNiche, leveraging its globally leading, independently innovative pharmaceutical-grade microcarrier technology, provides comprehensive solutions for the customized, large-scale expansion of cells. Currently, it offers end-to-end solutions encompassing equipment, reagents, and consumables for stem cells and exosomes. We look forward to CytoNiche further extending the application of its microcarrier technology to broader fields, thereby providing more production solutions for products such as vaccines, cultured meat, and oncolytic viruses. We also anticipate that more partners will join in the innovation and development of microcarrier-centric products, helping enterprises bring their products to market faster and at lower costs. Furthermore, we expect CytoNiche to pioneer with its microcarrier technology, expanding from China to the world, and becoming a global leader in cell culture solutions.”

Dr. Ye Xiaoli, Executive Director of Hongtai Fund, stated:“Cell and gene therapy has become a critical option for clinical disease treatment. Manufacturing processes are vital to achieving cost reduction and efficiency gains in cell and gene therapy products, with the importance of process upgrades and the independent controllability of upstream key equipment and consumables becoming increasingly prominent. CytoNiche has accumulated profound expertise in 3D microcarrier cell culture technology, achieving international leadership and domestic breakthroughs in key equipment and consumables. It provides innovative solutions for large-scale, intelligent, and customized cell culture while significantly reducing costs. We are delighted to witness the CytoNiche team’s strong innovation capabilities and its continuously improving industrial layout, which have gained recognition from benchmark customers and numerous partners. We look forward to CytoNiche leveraging continuous R&D and innovation to collaborate with industry partners in addressing and resolving challenges encountered during industrialization, thereby supporting the long-term, healthy development of the industry.”

Gaorong Capital is one of the most active venture capital firms in China, focusing on early-stage and growth-stage investments, with a particular emphasis on innovative sectors such as new consumer trends, emerging technologies, and healthcare. To date, 20 companies invested in or held by Gaorong have completed their initial public offerings, and more than 30 portfolio companies have achieved valuations exceeding $1 billion, with many growing into industry leaders. Gaorong Capital continues to closely monitor the healthcare sector, investing in innovative enterprises in areas such as digital health, medical services, new drug development, medical devices, and diagnostics.

CICC Qide (Xiamen) Innovative Biopharmaceutical Equity Investment Fund (hereinafter referred to as the “CICC Qide Fund”) is an equity investment fund under CICC Capital Operations Co., Ltd. (hereinafter referred to as “CICC Capital”) that focuses on innovative pharmaceuticals, marking a significant breakthrough in CICC Capital’s strategic layout within the biopharmaceutical industry. Leveraging its strong performance record, reputable brand, and robust investment management capabilities, the CICC Qide Fund has gained recognition and support from numerous well-known fund-of-funds, institutional investors, and listed companies. With an initial scale of over RMB 4 billion, the fund is deeply committed to the healthcare sector, covering multiple segments including innovative drugs, medical devices, and in vitro diagnostics.

CICC Qiyuan National Emerging Industry Venture Capital Guidance Fund (“CICC Qiyuan”) was jointly established by the National Development and Reform Commission, the Ministry of Finance, and social investors. As China’s first national-level fund focused on venture capital investment and direct investment in emerging industries, it represents a successful expansion of CICC’s direct investment business into fund-of-funds operations and strategic emerging industries. The fund aims to address financing challenges faced by early-stage, mid-stage, and start-up innovative enterprises in emerging industries through equity participation in venture capital funds and direct equity investments. It seeks to support entrepreneurship, innovation, and industrial upgrading, promote the integration of capital and technology, and enhance the overall development level and core competitiveness of China’s emerging industries.

Sinovac Biotech Ltd. (Sinovac, China) is a leading high-tech biopharmaceutical enterprise in China, dedicated to the research, development, production, and sales of human vaccines and related products, providing services for global disease prevention and control.

Vaccines developed by Sinovac Biotech of China primarily include those targeting emerging and sudden infectious diseases such as SARS, avian influenza (H5N1), the 2009 pandemic influenza A (H1N1), enterovirus 71 (EV71)-associated hand, foot, and mouth disease, and coronavirus disease (COVID-19), as well as vaccines for common infectious diseases including viral hepatitis, influenza, pneumonia, poliomyelitis, varicella, and mumps. Among these, the global supply of CoronaVac®, Sinovac’s inactivated COVID-19 vaccine, has exceeded 2.7 billion doses.

The Sinopharm CNBG Fund is an equity investment fund jointly initiated by Jianyi Capital and China National Biotec Group Company Limited. While engaging in market-oriented investments, the fund also aims to leverage its investments to foster greater business synergies between portfolio companies and China National Biotec Group, thereby promoting their growth. Established in 1919, China National Biotec Group Company Limited (hereinafter referred to as “CNBG”) is now a key member of Sinopharm Group, a Fortune Global 500 company. It is the most comprehensive, largest, and strongest integrated biomedical enterprise in Asia, combining research and development, production, sales, and graduate education.

Jianyi Capital is a new market-oriented brand launched by the former Sinopharm Capital following its 2021 brand refresh, combining the robust biomedical industry resources of Sinopharm Group with the advantages of fully market-driven operations.

Hongtai Fund was co-founded in 2014 by renowned entrepreneur Mr. Yu Minhong and senior investment banker Mr. Sheng Xitai. The fund primarily invests in five key sectors: information technology, advanced manufacturing, pharmaceuticals and healthcare, new consumption, and new materials. To date, it has invested in over 200 high-quality enterprises, with assets under management exceeding RMB 30 billion. Leveraging a rigorous investment research framework, focused investment strategy, and an experienced investment team, Hongtai Fund has achieved rapid growth and outstanding performance, earning widespread recognition from various stakeholders. Adhering to the core values of “Upholding Integrity, Fostering Innovation, Empowering Others, and Achieving Self-Realization,” Hongtai Fund is committed to becoming a premier industry integrator and innovation driver, serving the industry, contributing to society, and applying its professional expertise to benefit the nation.

Yuanhui Capital was established in 2010, focusing on three key sectors: healthcare and pharmaceuticals, semiconductors and digital industries, and new energy. It has invested in over 50 high-quality enterprises. Over the past 12 years since its inception, Yuanhui Capital has adopted a long-term perspective to identify passionate entrepreneurs and growth-oriented companies with hard-core technologies, investing in and accompanying them throughout their development journey. Guided by the concept of “ESG investment,” it promotes corporate upgrading towards “Business for Good”—facilitating a transition from merely “operating legally without doing harm” to achieving “high-quality sustainable development.” Through innovative models combining “venture capital + grant-making foundations + modern grassroots philanthropy,” Yuanhui Capital enables business to continuously generate resources and empower public welfare initiatives. This approach not only advances the development of modern grassroots philanthropy but also helps companies realize greater social value.

Yijing Capital, established in 2015 and headquartered in Shanghai, is a professional investment firm focused on global healthcare, hard technology, and major consumer sectors, while also managing fund-of-funds investments in these areas. Adhering to the philosophy of “helping enterprises innovate and grow, promoting industrial optimization and upgrading, and driving social development and progress,” the firm has grown to manage assets totaling RMB 7 billion, with seven portfolio companies recognized as industry unicorns.