Genhouse Bio Completes Hundreds of Millions RMB Series B Financing to Advance Core Pipeline into Clinical Development, H&Y Capital Serves as Exclusive Financial Advisor

VCBeat has learned that GEN HOUSE (Suzhou) Co., Ltd. (“GEN HOUSE”), a R&D enterprise dedicated to developing next-generation global anti-tumor small-molecule drugs using its combinatorial technology platform, has completed a Series B financing round worth hundreds of millions of RMB. The round was led by Lingcheng Venture Capital, with participation from QianDao Fund, Panyi Investment, Guohai Innovation Capital, and other institutions. Existing shareholder Legend Star continued to increase its investment. Haoyue Capital served as the exclusive financial advisor for this financing round.

GEN HOUSE is a global, innovative biopharmaceutical company dedicated to the research and development of original small-molecule anti-cancer drugs, with its headquarters located in Suzhou Industrial Park. The company has established an international first-class R&D team of nearly 100 members and built four core new drug R&D centers: the Innovation Research Center, the Drug Design and Discovery Center, the New Drug Screening and Evaluation Center, and the Clinical Development Center. GEN HOUSE has constructed a scientifically structured pipeline of three generations, comprising more than 10 product candidates.

In 2021, GEN HOUSE’s GH35 product (a KRAS G12C inhibitor) completed its first patient dosing. The GH21 product (an SHP2 inhibitor) received clinical trial approvals in both China and the United States; the U.S. clinical trials were conducted by GEN HOUSE’s strategic partner, Huaya Bio International, with the first patient dosed in January 2022. GEN HOUSE continues to deepen its expertise in the RAS signaling pathway, with a comprehensive portfolio around this pathway including SOS1 inhibitors, ERK1/2 inhibitors, and Pan-RAS inhibitors. Meanwhile, its 2.0 pipeline, focused on novel mechanisms of action and featuring greater innovation, competitiveness, and global value, is expected to achieve new breakthroughs this year.

Wang Kuifeng, Founder of GEN HOUSEIt stated that, under the increasingly intense pressure of hyper-competition, China’s innovative drugs should not be confined to “fast-follow” and “me-too” strategies. Since its inception, GEN HOUSE has adhered to the philosophy of “Diligent Research in Mind, Extensive Learning for Life,” striving to break through undruggable targets and focus on original innovation. We will continue to increase R&D investment, attract high-caliber talent, upgrade our internal R&D platforms, enrich our product pipeline, and accumulate core technologies. The company remains confident in the further development of its core products.

We extend our gratitude to the investors participating in this financing round for their recognition and support of the company, as well as to our existing shareholders for their continued partnership. We also thank Haoyue Capital, our financing partner in this transaction, for its strong execution capabilities and profound understanding of the industry. With the support of capital, GEN HOUSE remains committed to addressing unmet clinical needs. By working hand in hand with industry peers and investors, we are confident in delivering more, better, and broader therapeutic options to patients worldwide.

Sun Hangcheng, Managing Partner at Lingcheng Venture CapitalIt is stated that the domestic innovative drug industry in China is currently experiencing rapid growth, with increasingly fierce competition within the sector. Innovative pharmaceutical companies must not only rely on "Fast-Follow" strategies but also shift their focus toward First-in-Class drugs and establish global innovative R&D pipelines. We believe that GEN HOUSE is an innovative pharmaceutical company characterized by high execution efficiency and forward-looking vision, with its product pipeline development ranking among the leading positions in China. The development progress of its initial pipeline candidates, such as KRAS and SHP2 inhibitors, is at the forefront domestically, while subsequent pipeline products aim to create First-in-Class therapeutics and deploy a global innovative R&D portfolio. The company’s team has dedicated many years to the discovery, validation, and molecular optimization of novel targets, boasting strong R&D capabilities and promising growth potential. We are delighted to collaborate with a team like GEN HOUSE, which demonstrates sustained innovation capacity and efficient execution, and we look forward to deepening our cooperation to fully support the development of the company’s innovative pipeline, with the aim of addressing more unmet patient needs.

Gong Yun, Vice President of Qiandao GroupGEN HOUSE stated that, as a biotechnology company focused on the development of globally leading novel small-molecule anti-tumor drugs, it prioritizes original innovation and adheres to the R&D philosophy of “from the clinic, to the clinic.” By integrating basic research, innovative development, clinical studies, and commercialization, GEN HOUSE has established a distinctive innovative drug R&D system dedicated to overcoming challenges associated with “undruggable” targets. We look forward to GEN HOUSE continuing to be guided by unmet clinical needs in China and worldwide, consistently developing high-end, originally innovated new drugs that are accessible, affordable, and offer superior efficacy for global cancer patients, particularly those in China, thereby becoming a company with international influence.

Fang Shu, Partner at Panyi InvestmentGEN HOUSE stated that its tiered, scientifically structured pipeline reasonably balances risk and return, while its international team and comprehensive, distinctive talent system ensure the company’s future growth potential. Panyi highly recognizes GEN HOUSE’s leading technology platform and scientific research capabilities, and is honored to support the growth of such an outstanding company. We look forward to GEN HOUSE bringing a series of highly innovative products with global value to market as soon as possible, thereby addressing unmet clinical needs.

Jiang En, Head of the Healthcare Industry at Guohai Innovation CapitalGEN HOUSE stated that it is dedicated to the development of drugs targeting undruggable targets and has built a series of cutting-edge pipelines. It is one of the few companies in China with comprehensive and in-depth layout across the RAS pathway. Meanwhile, its 2.0 pipeline focuses on novel mechanisms of action, holding significant international value. The core team possesses a profound understanding of the development of innovative drugs in China and is committed to formulating long-term corporate development strategies. To ensure strategic implementation, the company has established effective mechanisms, including human resource and project management systems. Coupled with exceptional execution capabilities, GEN HOUSE is poised to stand out in its future development.

Leng Yan, Partner at Legend Star“Since Legend Star invested in GEN HOUSE last June, the company has made remarkable progress in just six months. The comprehensive capabilities of its founders and team, their execution prowess, and their strategic vision—rooted in China with a global outlook—have been continuously validated. We congratulate GEN HOUSE on completing its new round of financing and will continue to firmly support and remain optimistic about the company’s development.”

Li Yishi, Senior Partner at Haoyue CapitalHaoyue Capital expressed that it was honored to serve as the exclusive financial advisor for GEN HOUSE’s current round of financing, assisting the company in successfully completing this fundraising. Amid a broader slowdown in the financing environment during the second half of last year and a market emphasis on returning to the fundamental value of the healthcare sector, the successful closure of GEN HOUSE’s financing round—with oversubscription—fully demonstrates the market’s recognition of the company’s industry standing and affirms the significant potential value of its pipeline. During the financing process, Dr. Wang Kuifeng, the founder, and the core management team left an extremely deep impression with their efficient execution and entrepreneurial spirit. By focusing deeply on the RTK-RAS-MAPK signaling pathway, the company has built a robust pipeline portfolio, with GH21 and GH35 successfully advancing into clinical trials. Moving forward, it is believed that the company’s innovative 2.0 and 3.0 pipeline assets will stand out more rapidly with the support of capital.

GEN HOUSE is a biotechnology company dedicated to the development of globally leading novel small-molecule anti-tumor drugs. The company’s management team possesses extensive experience in corporate management, new drug research and development (R&D), and clinical medical research. Committed to breakthroughs in “undruggable” targets and focusing on original innovation, GEN HOUSE has established a distinctive R&D system for innovative drugs. This system includes a structure-activity relationship (SAR) research platform based on structural biology, an early-stage drug screening platform based on target research, and a preclinical evaluation platform covering efficacy, metabolism, and safety studies, thereby forming a product pipeline centered on targeted anti-tumor agents. Leveraging its comprehensive strategic planning and implementation capabilities for innovative drug R&D, GEN HOUSE successfully signed an agreement with Huaya Biopharma International to transfer overseas rights to its SHP2 inhibitor, GH21, enabling Chinese innovative drugs to embrace the global market.

Lingcheng Venture Capital is a specialized investment fund focused on innovative oncology therapeutics, dedicated to investing in pharmaceutical companies with genuine innovative value and exceptional management capabilities. Leveraging our deep understanding of China’s biopharmaceutical industry and extensive resources within the clinical research ecosystem, we work closely with our portfolio companies to achieve mutual growth. Beyond financial support, we connect Chinese innovative pharmaceutical enterprises with ecological industry resources, including business partners, strategic talent, and CRO services. Guided by our vision, “Pioneering Innovation, Upholding Medical Ethics,” we aim to join hands with our portfolio companies to contribute to the advancement of innovative drug development in China.

QianDao Fund, established in 2011, adheres to the philosophy of “empowering finance with technology, serving industries through financial services, and contributing to the nation through industrial development.” The firm specializes in asset management and investment activities, including equity investment and industrial investment. In the pharmaceutical and healthcare sectors, it has strategically focused on high-quality segments such as innovative drugs, in vitro diagnostics (IVD), innovative medical devices, healthcare services, and health technology. Its portfolio includes premium projects such as Northland Biotech, Lipin Pharmaceutical, MabPlex, CosmoBio, Lianxin Medical, and Kailian Medical. Notably, Northland Biotech was among the first batch of companies listed on the Beijing Stock Exchange.

Panyi (Suzhou) Private Equity Investment Fund Co., Ltd. (hereinafter referred to as “Panyi Investment”) was established in December 2020 and is primarily engaged in professional services such as equity investment, investment management, asset management, and financial consulting. Leveraging the strong market background of its shareholders and promoting innovative integration between industry and finance, Panyi Investment builds upon the regional advantages of the Suzhou Free Trade Zone. It brings together experts and talents from advantageous sectors including biomedicine, intelligent manufacturing, and human resources, providing high-end clients with “full-chain capital operation investment and advisory services.” Adhering to the core philosophy of “creating value for customers,” Panyi Investment is committed to becoming a distinctive, high-quality financial services institution in the region.

Guohai Innovation Capital Investment Management Co., Ltd. (hereinafter referred to as “Guohai Innovation Capital”) was established in January 2012. It is a private equity fund management subsidiary of a securities company approved by the China Securities Regulatory Commission, with a registered capital of RMB 2 billion. By the end of 2021, its cumulative assets under management had exceeded RMB 18.5 billion, ranking among the top in the industry. Leveraging ten years of accumulated investment research expertise in specialized sectors and delivering robust, outstanding investment performance, the firm has continuously earned the trust of professional institutional investors and recognition from the capital markets. In 2021, Guohai Innovation Capital received multiple prestigious industry awards, including the “New Fortune Securities Firm Private Subsidiary Innovative Investment Practice Award,” the “Golden Bull Securities Firm Equity Investment Outstanding Institution Award,” the “Zero2IPO 2021 Top 30 Best Private Equity Investment Institutions in the Guangdong-Hong Kong-Macao Greater Bay Area,” and the “Rongzhong 2020 Top 10 Best Securities Firm Private Subsidiaries in China,” fully affirming its professional capabilities. In recent years, the company has been consecutively honored as one of the “Top 10 Best Securities Firm Private Subsidiaries in China” and one of the “Top 50 Best Private Equity Investment Institutions in China” by professional rating agencies. Additionally, several of its portfolio companies have been included in the “China Gazelle Enterprises List” and the “PEDaily V50 List,” while its investments have won accolades such as Best Investment Case and Best Exit Case in the healthcare, TMT, and digital technology sectors.

Legend Star is one of the earliest venture capital firms to systematically lay out investments in the healthcare sector, having identified healthcare as a key investment focus since 2010. In this field, Legend Star has defined its strategic layout around two major segments: “Biopharmaceuticals” and “Digital Health.” The biopharmaceutical segment focuses on innovative drugs, gene technologies and services, diagnostics, and high-value consumables; the digital health segment encompasses opportunities to upgrade and empower various aspects—including drug R&D, medical devices, healthcare services, insurance payment, and health management—through technologies such as artificial intelligence, big data, and robotics. To date, Legend Star has invested in more than 100 high-quality healthcare projects, including Kintor Pharmaceutical (9939.HK), Burning Rock Biotech (NASDAQ: BNR), Axonics (NASDAQ: AXNX), Keymed Biosciences (2162.HK), PegBio, Caydy, Qihan Biotechnology, Gaocheng Biology, Deepwise Healthcare, Jingfeng Surgical Robot, and Jiayin Biologics.

Haoyue Capital, founded in January 2014, is committed to serving as a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including biopharmaceuticals, innovative medical devices, in vitro diagnostics (IVD) and precision medicine, healthcare services, and smart healthcare. The Haoyue Capital team comprises seasoned investment bankers with extensive experience in China’s healthcare sector. By closely monitoring market dynamics and investment trends in healthcare over the long term, the firm publishes weekly healthcare investment reports and thematic research studies, offering Haoyue’s perspectives on new policies and emerging frontiers.