Rongcan Biotech Secures Tens of Millions of RMB in Pre-A Financing Led by a Prominent Healthcare Fund, with Hygeia Capital as Exclusive Financial Advisor

VCBeat has learned that Rongcan Biomedical, a platform enterprise dedicated to independent innovation in nucleic acid technologies, recently announced the completion of a financing round amounting to tens of millions of RMB.Pre-Series A Financing: This round was led by a well-known professional healthcare fund, with Haoyue Capital serving as the exclusive financial advisor. The proceeds will accelerate Rongcan Biomedical’s product development and team building, and advance its leading pipeline candidates into clinical studies.

Rongcan Biotechnology was founded in June 2020 by a team of senior overseas-returnee PhDs and domestic experts. The founding team possesses decades of experience in the nucleic acid industry and has successfully designed and developed lipid nanoparticle (LNP) vectors with fully independent intellectual property rights. Collaborating with Professor Robert Langer, they secured a US patent for novel cationic lipid carriers, with Rongcan’s founder listed as the primary inventor. This makes them one of the few teams in China to co-develop cationic lipid carriers with Professor Robert Langer and obtain US patent authorization. The cationic lipids developed by the company have gained recognition from global experts in the field of nucleic acid delivery. Research findings on their application in mRNA and siRNA drug delivery have been published in top-tier international journals, including *Science Translational Medicine*, *Nature Biomedical Engineering*, *PNAS*, and *Science Advances*.

The global outbreak of the COVID-19 pandemic has accelerated the development of mRNA technology, with its technical feasibility and advantages gaining industry-wide recognition. For mRNA therapeutics, the development of efficient and safe drug delivery systems is critical. Lipid nanoparticles (LNPs) are currently one of the most mature delivery systems in mRNA drug research and application, offering numerous advantages such as high encapsulation efficiency, excellent cellular transfection efficiency, strong tissue penetration, and low cytotoxicity and immunogenicity. LNPs have already been successfully incorporated into multiple commercialized products.

As the “soul” of mRNA drug delivery, LNP patents present extremely high barriers to entry, and international disputes over LNP patents continue unabated.LNP patents primarily provide protection in three aspects: first, the chemical structure of cationic lipids within LNPs, which constitutes the core of LNP patents; second, the molar ratios between cationic lipid molecules and other components in LNPs, including the proportions among different lipids as well as the ratio of cationic lipids to mRNA; and finally, the uses of LNPs.To completely break free from existing LNP patent restrictions, companies must pursue a path of fully independent innovation by discovering novel cationic lipid structures and their component formulations.

As a nucleic acid R&D enterprise with a robust patent moat for lipid nanoparticles (LNPs) in China, the company has simultaneously achieved breakthroughs in patents covering cationic lipid structures, formulation component ratios, and therapeutic indications. It has developed an independently owned, commercially viable LNP delivery system and completed global freedom-to-operate (FTO) analyses, securing the right to operate freely worldwide. Leveraging its innovative library of cationic lipid compounds, Rongcan has conducted in vivo evaluation and screening of over 5,000 LNPs through animal studies. Preclinical head-to-head animal data demonstrate that the delivery efficiency, safety, cost-effectiveness, and accessibility of the company’s proprietary LNP technology are comparable to or superior to those of leading international competitors. Furthermore, the delivery system exhibits excellent stability and can be stored at low temperatures, significantly reducing storage and transportation costs while enabling broad application scenarios.

Notably, Rongcan has achieved a breakthrough in extrahepatic organ targeting with lipid nanoparticles (LNPs), making it one of the few domestic companies engaged in the research and development of LNPs capable of targeting vascular atherosclerotic plaques and lung tissue. Preclinical studies have validated that the company’s LNP platform enables specific extrahepatic targeted delivery, demonstrating excellent therapeutic efficacy in animal models.

Furthermore, in September this year, the Company was awarded a “Key Project” under the “Open Competition Mechanism” for technical breakthroughs in nucleic acid drugs, organized by the National Biopharmaceutical Technology Innovation Center (the first national-level technology innovation center in China’s biopharmaceutical sector, approved for establishment by the Ministry of Science and Technology in March 2021). A total of 169 renowned pharmaceutical companies and research institutions across China, including multiple mRNA companies, hospitals, and research institutes, participated in the application process. Rongcan Biomedical Technology (Shanghai) Co., Ltd. was listed among the eight major key projects, making it one of only two enterprises in the entire Shanghai region selected for such major key projects.

Founder of Rongcan BiomedicalWe are honored to have secured support from a professional medical investment fund in this round. The application prospects of mRNA technology are extensive; for mRNA R&D enterprises, the development of independently innovative delivery systems currently represents the most challenging technical hurdle. We believe that only by prioritizing source innovation, enhancing our technological capabilities, and building a comprehensive industry chain platform can we secure a competitive position in the global mRNA race. The team at Rongcan Biomedical Technology (Shanghai) Co., Ltd. possesses decades of experience in nucleic acid drug R&D and has established an R&D platform for nucleic acid delivery vectors with truly independent proprietary patents. We are currently collaborating with leading domestic vaccine manufacturers and research institutions, with the aim of further benefiting patients.

Mr. Li Yishi, Senior Partner at Haoyue CapitalThe pandemic accelerated the emergence of mRNA COVID-19 vaccines, drawing heightened attention to mRNA technology. The potential of nucleic acid therapeutics is gradually being unlocked, with delivery technologies becoming pivotal to their development. Currently, teams worldwide that truly master key lipid nanoparticle (LNP) delivery technologies are scarce. Rongcan Biomedical Technology (Shanghai) Co., Ltd. boasts profound technical expertise in nucleic acid delivery, earning recognition from top scientists globally. We view Rongcan favorably as a platform company continuously expanding its technological applications. Even in a downturn market environment, high-quality companies like Rongcan Biomedical, operating in cutting-edge sectors, will continue to gain capital market recognition.

Rongcan Biomedical Technology (Shanghai) Co., Ltd. was established in June 2020, dedicated to the development and industrialization of mRNA-based novel therapeutics. The company has established a comprehensive R&D system covering mRNA sequence design and synthesis processes, lipid chemistry, LNP formulation development and scale-up processes, analytical method development and validation, and biological evaluation platforms. Additionally, it operates GMP-compliant pilot production lines for mRNA drug substance and LNP formulations, with a total area of approximately 4,000 square meters, meeting the requirements for IND-enabling studies and clinical Phase I–II sample production.

The founding team of Rongcan completed their joint postdoctoral research at the Massachusetts Institute of Technology and Harvard Medical School. With over 10 years of R&D experience in nucleic acid delivery vector technology, they have established a nucleic acid delivery technology platform with independent intellectual property rights. In addition to being suitable for vaccine development, this delivery platform has overcome the common limitation of hepatic accumulation associated with nucleic acid delivery, achieving specific targeted delivery to atherosclerotic plaques and hepatic stellate cells. Furthermore, they have developed China’s first inhalable nucleic acid nano-delivery system for pulmonary administration.

Rongcan Biomedical Technology (Shanghai) Co., Ltd. possesses internationally competitive nucleic acid delivery vector technologies and an mRNA biotechnology platform. The company is currently collaborating with renowned domestic vaccine enterprises and R&D institutions, pursuing strategic development through various models including technology licensing, collaborative development, and revenue sharing.

Haoyue Capital, established in January 2014, is a leading industry-focused investment bank in China specializing in the healthcare sector. Headquartered in Shanghai, the firm maintains regional offices in Beijing and Shenzhen. Committed to empowering clients through capital support and research-driven insights, Haoyue Capital facilitates the successful connection of outstanding Chinese healthcare enterprises with the capital markets, thereby creating value-added benefits for its clients. The partnership team comprises senior investment bankers with extensive experience in China’s healthcare sector, supported by a professional team of over 70 members. Haoyue Capital closely monitors dynamics and trends in the healthcare investment market, with its research and transaction coverage spanning multiple sub-sectors, including innovative pharmaceuticals, innovative medical devices, IVD and life sciences, health services, and smart healthcare. In 2021, Haoyue Capital completed more than 50 complex transactions involving private financing, mergers and acquisitions, and spin-offs of listed companies, with a total transaction value amounting to tens of billions of RMB, securing a leading position across various healthcare sub-sectors.