Danxu Biologics Completes Nearly RMB 300 Million Series B Financing to Advance COVID-19 Neutralizing Antibodies and Expand Pipeline Using High-Throughput Single-Cell Technology

VCBeat (WeChat: vcbeat) learned at the earliest opportunity that, recently,Danxu Biopharmaceutical Announces Completion of Nearly RMB 300 Million in Series B Financing, this round of financing was co-led by Legend Capital and Magic Stone Alternative Investment, with follow-on investments from Jianyi Capital (formerly Sinopharm Capital), Guoke Jiahe, Founder Hesheng, Ruihua Capital, Zhicheng Capital, and others. Meanwhile, existing shareholders Huagai Capital, Hillhouse Ventures, and Bohe Angel Fund, as well as the management team, made additional investments. The funds from this round will be used forWhile developing neutralizing antibodies for COVID-19, we further strengthened our new pipeline.

Danxu Biopharma is a company dedicated toAn Innovative Pharmaceutical Company Leveraging Single-Cell Sequencing Technology Platforms for Antibody Drug Research and Development, with a focus on indications across infectious diseases, autoimmune disorders, and oncology. The company’s two most advanced products, DXP-593 and DXP-604, are neutralizing monoclonal antibodies identified from recovered COVID-19 patients using a high-throughput single-cell sequencing platform. They are currently in clinical development for the treatment and prevention of COVID-19.

Zhou Quan, Managing Director of Legend Capitalstated, “We are delighted to partner with Beijing Danxu Biopharmaceutical Co., Ltd. We have long been optimistic about the applications of single-cell sequencing technology in scientific research, clinical practice, and pharmaceutical development. Academician Xie Xiaoliang is a leading authority in the field of single-cell genomics in China. During the COVID-19 pandemic, he led his team to rapidly develop broad-spectrum antibodies and conducted large-scale compassionate use programs, making significant contributions to the nation’s epidemic response. The company is continuously expanding its pipeline, holding promising prospects for the future.”

Ms. Zeng Yu, Founding Partner of Magic Stone Capitalstated: “We are highly optimistic about the development of Danxu Biopharmaceutical. Danxu represents another classic case of a successful venture co-founded by scientists and entrepreneurs. Academician Xie Xiaoliang is one of the pioneers of single-cell sequencing technology worldwide, with profound expertise and outstanding scientific achievements in this field. Dr. Shi Qian is a corporate leader who combines extensive professional technical background with rich enterprise management experience. This ‘golden team’ combination is highly valued by us and Magic Stone Alternative Investment. Furthermore, in its R&D direction, Danxu leverages globally leading single-cell sequencing technology to focus on the discovery of novel therapeutic antibodies derived from patient samples, bringing disruptive innovation to the traditional antibody drug discovery process. Their currently developed DXP-604, a SARS-CoV-2 neutralizing antibody, is among the most promising SARS-CoV-2 neutralizing antibody products globally. We will spare no effort to support the development of Danxu Biopharmaceutical by leveraging Magic Stone Alternative Investment’s resource advantages and professional post-investment service capabilities.”

Beijing Danxu Biopharmaceutical Co., Ltd. was established in June 2020,Co-founder Professor Xie XiaoliangHe is an internationally renowned biophysical chemist and a member of the U.S. National Academy of Sciences, the National Academy of Medicine, the American Academy of Arts and Sciences, and a Foreign Member of the Chinese Academy of Sciences. He formerly held the Mallinckrodt Professorship in Chemistry and Chemical Biology at Harvard University. In 2018, he returned to China full-time to contribute to scientific research and education, and currently serves as the Li Zhaoji Chair Professor at Peking University. Over the past decade, Academician Xie has spearheaded the rapid development and medical application of single-cell genome sequencing technologies. Following the outbreak of the COVID-19 pandemic, he immediately organized a multi-institutional, multidisciplinary collaborative effort. His team at Peking University was the first to successfully apply high-throughput single-cell genomics to the screening of human neutralizing antibodies, thereby rapidly identifying highly potent neutralizing antibodies.

Co-founder Dr. Cao YunlongGraduated from Harvard University in 2019, he joined the Beijing Advanced Innovation Center for Genomics at Peking University, where he published multiple papers in Cell and Nature and made significant contributions to the research and development of COVID-19 drugs and vaccines. He was named to the MIT Technology Review’s 2021 list of “35 Innovators Under 35” in China.

Dr. Qian Shi, CEO of Danxu Biopharmaceutical“It was stated that, in terms of the team, the founding team led by Academician Xie Xiaoliang carries a natural prestige, and joint teams comprising academicians and entrepreneurs are more favored by investment institutions. Technologically, single-cell sequencing technology is accelerating the development of new drugs; currently, the company’s COVID-19 antibody drug has entered Phase II clinical trials and has reached an agreement with Sinopharm CNBG Wuhan Institute to advance Phase III clinical trials. From a market perspective, DXP-604 has been used under compassionate use protocols for the clinical treatment of hundreds of patients in multiple epidemic-affected regions across China, achieving favorable outcomes. Therefore, from the perspectives of team, technology, product, and market, Danxu Biopharmaceutical demonstrates operational stability and broad development prospects, which are also key reasons for its recognition by investment institutions.”

It is reported that Dr. Shi Qian joined Beijing Danxu Biopharmaceutical Co., Ltd. (Danxu Bio) last August as CEO, assuming full responsibility for the company’s operations. With over 20 years of dedicated experience in oncology research, Dr. Shi has a profound understanding of the current landscape and needs in scientific research, pharmaceutical development, and clinical practice. He also possesses extensive leadership experience in managing cross-regional and cross-cultural teams. Prior to joining Danxu Bio, Dr. Shi served as General Manager of China and Head of Research at Apollomics, where he led his team to secure Investigational New Drug (IND) approvals for a Phase III trial in acute myeloid leukemia (AML) and a Phase I trial in solid tumors, thereby propelling the company into the clinical stage. Previously, he worked for more than seven years at Crown Bioscience, an internationally renowned preclinical CRO, serving as General Manager of the Taicang branch and Vice President of Oncology, where he led the in vitro and in vivo tumor pharmacology and PDX (patient-derived xenograft) teams.

According to Dr. Shi Qian, the company’s team currently comprises 26 members. The core scientific team consists of graduates from prestigious institutions such as Harvard University, Peking University, and Fudan University, who have accumulated extensive expertise in single-cell genomics, transcriptomics, methylomics, immunology, and oncology.

Danxu Biopharmaceutical has established a platform with its own distinctive featuresSingle-Cell High-Throughput Drug Screening R&D Platform, this platform enables high-throughput, rapid reverse engineering of antibody-based therapeutics. As a novel drug development strategy, single-cell sequencing technology targets cells with well-defined biological functions and employs a reverse-engineering approach. Leveraging its high-content, high-throughput, and high-precision attributes, it significantly enhances the accuracy of antibody drug development, thereby minimizing both the development timeline and failure rates.

According to Dr. Shi Qian, Danxu Biologics' R&D pipeline mainly focuses on three directions.

The first isSARS-CoV-2 Neutralizing Antibodies, with Main Products Being DXP-593 and DXP-604.DXP-593 and DXP-604 are two SARS-CoV-2 neutralizing antibodies identified from antigen-specific B cells of over 60 COVID-19 convalescent patients using high-throughput single-cell transcriptome and VDJ sequencing technologies. According to Shi Qian, the company will subsequently focus on the development of DXP-604. “We found that DXP-593 was evaded by subsequent mutant strains, including the Delta variant (first identified in India) and the currently prevalent Omicron variant. In contrast, DXP-604 has maintained potent activity against both Delta and Omicron, and in vitro studies have shown that this single antibody can neutralize nearly all mutations. We will therefore concentrate our future development efforts on DXP-604.”

DXP-604 is currently in Phase II clinical trials in China and is a product developed in collaboration with Sinopharm CNBG Wuhan Institute of Biological Products.“We will collaborate with Sinopharm’s Wuhan Institute of Biological Products to conduct Phase III clinical development overseas. ‘Given that the overseas epidemic situation may allow for rapid patient enrollment, the Phase III development of DXP-604 will be carried out abroad to accelerate the product’s entry into clinical use and the market,’ said Dr. Shi Qian.”

“In China, our compassionate use program and clinical development are advancing hand in hand. In addition to Phase II clinical trials, we have provided compassionate use of the drug to more than 300 patients across multiple cities, including Beijing, Tianjin, Xi’an, and Shaoxing. When the outbreak occurred, we pressed forward resolutely, overcoming various challenges to ensure that the medication reached local hospitals at the earliest possible opportunity to assist both patients and healthcare providers. This is the greatest honor for us as drug developers,” said Dr. Shi Qian.

In addition to neutralizing antibodies against the novel coronavirus, Danxu BiopharmaceuticalAnti-infective diseases,such as chronic hepatitis B, andOncologyThe product pipeline has been laid out and is currently in the early R&D stage.

During the drug development phase, single-cell sequencing technology primarily serves to rapidly identify lead drug molecules and accelerate progression into clinical stages, thereby significantly reducing the consumption of financial resources, time, and manpower.

However, single-cell sequencing is not limited to the acquisition and screening of antibody molecules; it has a wide range of applications. In the pharmaceutical industry, single-cell technologies enable companies to conduct high-throughput drug target screening, pharmacokinetic analysis, and efficacy evaluation at the single-cell level, significantly shortening the drug discovery cycle, reducing the cost of new drug development, and optimizing R&D pipelines.

Single-cell sequencing technology holds vast potential for industry-wide applications in the future. However, it is currently in the early stages of exploration, and its adoption remains limited.

Dr. Shi Qian stated, “This is mainly because single-cell sequencing technology is costly and demands high levels of technical expertise and subsequent data analysis, which has hindered its widespread application.”

“Currently, there are not many companies and research institutions that have mastered single-cell sequencing technology. We hope to see more application scenarios and higher frequency of use for this technology in the future,” said Dr. Shi Qian.

Based on current realities, Danxu Biopharmaceutical aims to collaborate closely with the Wuhan Institute of Biological Products under Sinopharm China National Biotec Group (CNBG) to successfully complete the Phase III clinical validation of DXP-604, thereby achieving true commercialization.

Looking ahead, Beijing Danxu Biopharmaceutical Co., Ltd. will continue to strengthen its product pipeline by enhancing independent R&D and introducing innovative projects focused on macromolecular antibody drugs for infectious diseases and oncology. By pursuing a dual strategy of advancing both self-developed and in-licensed products in a synergistic manner, the company aims to realize its vision: “Leveraging our globally leading single-cell sequencing technology platform to continuously drive innovative drug research for various indications, including infectious diseases and cancer, and to develop high-quality medicines that are affordable for the Chinese population.”

Legend Capital is an independent professional investment firm under Legend Holdings. Established in April 2001, it focuses on early-stage venture capital and growth-stage investments. The total assets under management of its USD and RMB funds exceed RMB 60 billion, with a strategic emphasis on innovation and growth opportunities in China. As of 2021, Legend Capital had invested in more than 500 portfolio companies, among which over 90 have successfully listed or been quoted on domestic or overseas stock exchanges, and more than 60 have exited through mergers and acquisitions.

MSA Capital is a private equity investment firm deeply rooted in China with a global perspective, focusing on early-stage and growth-stage investments in key sectors such as healthcare, frontier technologies, internet, and consumer industries. Headquartered in Beijing, the firm maintains resident teams in the United States, the Middle East, and Africa. Leveraging its broad global vision and profound insights into international markets, the team not only identifies high-quality investment opportunities but also helps portfolio companies rapidly expand into overseas markets by leveraging local resources. Currently, MSA Capital manages over $2 billion in assets. Its investment portfolio includes BGI Genomics (SZ:300676), Yidu Tech (2158.HK), NIO (NYSE: NIO), BOSS Zhipin (NASDAQ: BZ), Meituan Dianping (3690.HK), Uber (NYSE: UBER), Nubank (NYSE: NU), Smart Healthcare, Suikun Intelligence, Yanming Biologics, Anxuyuan, Astacon, Monro Bio, Diwin Biotechnology, PAQ Therapeutics, Kadini, Andu Biologics, Wujiang Technology, Danxu Biologics, Black Sesame Technologies, Biren Technology, Visbot Robotics, Feibu Technology, Piaoyitong, Oriental Space, Cider, T11 Fresh Supermarket, and Uniskin.