Achiko Bio Completes Oversubscribed $50M+ Series B Financing Led by Hongtai Fund

Recently, Akeano Biopharmaceuticals (Suzhou) Co., Ltd. (“Akeano”), a leading domestic innovator in small-molecule drug development, successfully completed its Series B financing round of over USD 50 million, which was oversubscribed. The round was led by Hongtai Fund, with participation from Zhongnan Venture Capital, SCGC, Oriza Holdings, GF Xinde, and Sanhua Hongdao. CEC CAPITAL served as the exclusive financial advisor to Akeano in this transaction.

The proceeds from this financing round will be primarily used to advance the clinical trials and preclinical development of multiple projects in Aikenuo’s R&D pipeline, as well as to expand international business collaborations.

Aikenuo was founded in late 2017 and received exclusive Series A financing from Morningside Venture Capital. The company is headquartered in the BioBAY of Suzhou Industrial Park. By focusing on the independent research and development of a common mechanism underlying multiple major diseases—the “cell death–inflammation” circuit—Aikenuo has secured numerous patents in China and the United States and holds global rights to its product pipeline. Extensive research has demonstrated that regulated cell death (including necroptosis, pyroptosis, ferroptosis, etc.) plays a critical role in various major diseases; therefore, therapeutics targeting the “cell death–inflammation” circuit hold the potential to become platform drugs. The company is developing multiple first-in-class (FIC) small-molecule drug candidates for inflammatory diseases, fibrotic diseases, autoimmune disorders, and tumors to address significant unmet clinical needs. The most advanced product in its pipeline, an RIPK1 inhibitor, has had its Investigational New Drug (IND) application approved by the U.S. Food and Drug Administration (FDA) and is poised to commence clinical trials.

The core team of Aikon has over a decade of research experience in the biological mechanisms of cell death and chemical translation. The founder and CEO is Professor Zhang Xiaohu, who possesses extensive industry experience in drug development. He previously served at Neurocine Biosciences and held the position of Executive Director at leading CRO companies BioDuro/PPD, successfully advancing multiple products into clinical trials. The co-founder and scientific advisor is Professor He Sudan, who conducted research on the biological mechanisms of cell death at the University of Texas Southwestern Medical Center and the National Institute of Biological Sciences, Beijing. He subsequently served as a Principal Investigator (PI) at Soochow University and the Suzhou Institute of Systems Medicine, publishing numerous significant biological research findings that have been widely cited by peer scholars.

Dr. Zhang Xiaohu, Co-founder and CEO of Aikenuo, stated: “The Aikenuo team remains committed to its promise of ‘safeguarding your health with a passion for science.’ Patient-centric and grounded in scientific innovation, we are dedicated to developing novel therapies for major diseases in the fields of autoimmunity and oncology. After years of diligent effort and accumulation, the company has established an efficient professional R&D team and developed multiple pipelines with global intellectual property rights. Our independently developed small-molecule RIPK1 inhibitor has received clinical trial approval in the United States, and several innovative projects are currently in the IND-enabling or preclinical stages. We extend our gratitude to our existing shareholder, Morningside Venture Capital, for its years of support and companionship, and to our new shareholders—HongTai Fund, Zhongnan Ventures, SCGC, Oriza Holdings, GF Xinde, and Sanhua Hongdao—for their trust and support. This round of financing will propel Aikenuo to a new level, facilitating its transformation from an R&D-focused entity into a clinical-stage company.”

Ms. Li Tong, Healthcare Partner at Hongtai Fund, stated, “There remains a significant unmet clinical need for autoimmune diseases globally, and small-molecule drugs with novel mechanisms have long been at the forefront of global R&D efforts for new autoimmune therapies. The Aikenuo team possesses a profound understanding of cell death pathways and their potential related indications. Leveraging cutting-edge original basic biological research and robust translational studies, Aikenuo has independently developed multiple potential ‘platform drugs.’ Over the past four years since its establishment, Aikenuo has demonstrated a solid and focused approach to new drug development, along with highly efficient execution. Hongtai Fund is optimistic about Aikenuo’s growth trajectory and is pleased to serve as the lead investor in this financing round. We look forward to deepening our collaboration with Aikenuo in the future and continuing to support its expansion and success.”

Wei Yufa, Partner at Zhongnan Venture Capital Fund, stated: “Aikenuo Bio focuses on the development of drugs targeting rare targets. Its R&D pipeline holds exceptionally high innovative value and addresses significant unmet clinical needs, aiming to provide better therapeutic options for patients. The Aikenuo R&D team has been deeply engaged in the field of innovative drugs for many years, accumulating extensive development experience. We are highly optimistic about the team’s R&D and execution capabilities, and we look forward to Aikenuo Bio achieving continuous breakthroughs in new drug development, bringing hope to patients.”

Dr. Zhang Xiao, Partner at CEC CAPITAL, stated, “As is well known, regulated cell death plays a pivotal role in a variety of major diseases. As one of the leading companies in the field of regulated cell death, we are highly optimistic about Aikenuo’s profound biological expertise, robust translational capabilities, and the potential for its product pipeline to evolve into platform therapeutics. The CEC CAPITAL team is honored to have assisted Aikenuo in completing this round of financing, and we look forward to the company achieving further breakthroughs in the near future to address significant unmet clinical needs.”

Morningside Venture Capital was founded in 1986 in Boston, USA, by the Chen family of Hong Kong, and formally expanded its venture capital business to mainland China in 1993. Since its inception, Morningside Venture Capital has closely monitored and prioritized cutting-edge developments in the global biopharmaceutical and healthcare sectors, with its portfolio companies operating and invested across North America, Europe, and Asia. The firm brings together a team of investors who possess both deep industry technical expertise and extensive experience in venture capital and management, actively investing in early-stage and growth-stage companies featuring innovative technologies and disruptive medical technologies and healthcare service models. To date, Morningside Venture Capital has invested in over one hundred medical and pharmaceutical projects in mainland China.

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, Embracing Innovation, Empowering Others, and Achieving Self-Realization,” HongTai Fund is committed to becoming a premier industry integrator and innovation driver, serving industrial development, contributing to society, and applying its professional expertise to benefit the nation.

Zhongnan Venture Capital Fund was established in 2008. It manages multiple RMB and USD venture capital funds, with a deep focus on technological innovation sectors such as biomedicine, semiconductors, and artificial intelligence at the early-stage and growth-stage levels. Guided by our mission to “empower technology with capital and benefit humanity through technology,” we adhere to an investment strategy of “undertaking difficult yet valuable endeavors.” Driven by innovation and guided by scientific and commercial insights, we identify and support high-potential technological leaders with rapid growth prospects worldwide. With strong backing from our fund’s strategic framework and our team of scientific advisors, we create value and grow alongside entrepreneurs.

Shenzhen Capital Group Co., Ltd. (SCGC), established in 1999, is committed to its mission of discovering and empowering great enterprises. Dedicated to identifying and nurturing innovative value, it has evolved into a comprehensive investment group with venture capital at its core. The company currently has a registered capital of RMB 5.42 billion and manages total assets under management of approximately RMB 421.3 billion. As of the end of July 2021, SCGC ranked first in China’s venture capital industry in terms of both the number of portfolio companies and the number of portfolio companies listed on stock exchanges.The Shenzhen Hongtu Healthcare Industry Fund, established in 2018, was the first healthcare-focused fund launched by SCGC as part of its “specialization” strategy. The fund focuses on identifying high-quality investment targets with strong innovation capabilities and significant growth potential, thereby promoting industrial development. It has invested in numerous outstanding enterprises, including Akeso, YHLO, RemeGen, Laekna Therapeutics, GenFleet Therapeutics, Zymeworks (Zhimeng Pharma), Qiyu Biologics, and Weilizhibo.

Since its establishment in 2001, Oriza Holdings has focused on the field of equity investment, with assets under management exceeding RMB 100 billion, making it one of the leading equity investment firms in China. Since its inception, the company has prioritized investment opportunities in emerging industries such as integrated circuits, biopharmaceuticals, artificial intelligence, and nanotechnology applications, adhering to its commitment to supporting the real economy and promoting industrial transformation and upgrading. To date, it has directly invested in over 1,000 projects, while its fund-of-funds platform has invested in more than 140 sub-funds.

GF Xinde, established in 2008, is a wholly-owned private equity subsidiary of GF Securities (Stock Code: 000776) and has consistently ranked among the top three on Zero2IPO’s list of securities firm-backed private equity managers. As of the end of September 2021, the company’s cumulative assets under management exceeded RMB 30 billion, with over 50 funds raised and managed. Its investment portfolio spans multiple sectors, including healthcare, consumption upgrading, industrial innovation and upgrading, and TMT, covering various investment strategies such as private equity (PE), venture capital (VC), and mergers and acquisitions (M&A).

Sanhua Hongdao is the financial investment platform of Sanhua Holding Group Co., Ltd., a top-500 private enterprise in China. Guided by the philosophy of “A gentleman must be broad-minded and resolute, clarifying the Way to establish virtue,” Sanhua Hongdao adheres to value-oriented investing, covering enterprises at various development stages, with assets under management totaling RMB 3 billion. Since its establishment, Sanhua Hongdao has invested in more than 50 projects, including dozens that have gone public, such as Chengda Biopharma and Jinhong Gas. In the biopharmaceutical sector, it has made strategic investments in companies like Solin Biotherapeutics, KangLe WeiShi (Kangle Guard), Youzhiyou Biopharma, and Xinma Biotherapeutics. Additionally, it currently has over 30 projects undergoing regulatory review or pre-IPO counseling.

CEC Capital is a leading new-economy investment bank in China, focusing on three major sectors globally: TMT, consumer, and healthcare. In addition to its investment banking services, CEC Capital manages one RMB-denominated fund and one USD-denominated fund. The firm has branch offices in Beijing, Shanghai, Los Angeles, and San Francisco, and holds licenses for the U.S. securities market. Healthcare is a key focus area where CEC Capital possesses significant competitive advantages; it has been ranked as the new-economy investment bank with the highest number of healthcare industry transactions in China for four consecutive years. Furthermore, CEC Capital boasts the largest, most professional, and most comprehensively integrated investment banking team dedicated to the healthcare industry in China.