Kangyuan Jiuyuan Secures Tens of Millions of RMB in Series A Funding to Advance IND Filing for JY108 Bispecific Antibody

VCBeat (WeChat ID: vcbeat) recently learned that Shenzhen Kangyuan Jiuyuan Biotechnology Co., Ltd. (hereinafter referred to as “Kangyuan Jiuyuan”) announced the completion of its Series A financing, amounting to tens of millions of yuan.Led by Guozhong Capital, with participation from Fenxiang Investment, Chengdu Tianfu Sanjiang Asset Management Co., Ltd., and Leimeiruis Venture Capital; Jianyihui (Chaoshan Capital) served as the financial advisor for this round.。

It is reported that the funds from this round of financing will be primarily used for the Investigational New Drug (IND) application for JY108, a bispecific antibody drug under Kangyuan Jiuyuan, as well as for early-stage research and development of new projects, team expansion, and the establishment of pilot-scale production facilities. JY108 is the most advanced product pipeline in Kangyuan Jiuyuan’s portfolio.The First PEGylated Bispecific Linker Bispecific Antibody for the Treatment of Autoimmune Diseases。

Kangyuan Jiuyuan was established in 2018 and secured Pre-A round financing from Fenxiang Investment in the same year. Kangyuan Jiuyuan is an innovative antibody drug R&D enterprise focused on cancer treatment and autoimmune chronic inflammatory diseases. The company is committed to developing platform technologies with differentiated capabilities that offer clinical advantages. After several years of development, the company has established two proprietary platform technologies, enabling the rapid development of multiple new drug projects and ensuring the sustainability of its self-developed innovative programs. Meanwhile, the Kangyuan Jiuyuan team possesses extensive technical expertise and proven experience in polyethylene glycol (PEG)ylation technology, further safeguarding the sustainability of its platform technologies.

It is worth noting that Kangyuan Jiuyuan’s independently developed, globally unique dual-target PEGylation linker technology has been applied to the development of drugs such as bispecific antibodies and bispecific antibody-drug conjugates (ADCs). Compared with other bispecific antibodies,PEG Dual-Linker Technology Features High Safety and Favorable Druggability, particularly in addressing cytokine storms associated with current T cell-mediated bispecific antibodies and enhancing selectivity for pathological target cells, it offers unique advantages.

Currently, Kangyuan Jiuyuan’s product pipeline under development includes bispecific antibodies and bispecific antibody-drug conjugates (ADCs), with multiple candidates having demonstrated promising preclinical data. Among these, JY108, the most advanced candidate, has been shown by preclinical studies to effectively treat multiple sclerosis compared to corresponding monoclonal antibodies. JY108 is also the first PEGylated bispecific linker-based bispecific antibody therapy for autoimmune diseases. This round of financing will accelerate the clinical development of JY108, enabling patients to benefit from this therapy sooner.

Another technology platform of Kangyuan Jiuyuan is bispecific antibody-drug conjugates (ADCs) based on PEG dual-linker technology.

Over the past decade, antibody-drug conjugate (ADC) therapies have continued to achieve new breakthroughs, with 12 ADCs approved for marketing by the U.S. FDA. However, due to inherent limitations of ADC technology, many obstacles still restrict their widespread application, including systemic toxicity (9 out of the 12 FDA-approved ADCs carry a Black Box Warning), limited selectivity for patient biomarkers, and the development of acquired resistance.

These issues are all related to the current ADC technology itself, such as the stability of the linker between the antibody and the small molecule, antibody specificity, etc. Kangyuan Jiuyuan's bispecific antibody ADC technology adopts technologies such as bispecific antibodies, stable toxin linkers, and site-specific PEGylation, which preciselyAvoids ADC-induced toxicitydue to its significant advantages in addressing the toxicity and manufacturing challenges (such as homogeneity) associated with traditional antibody-drug conjugates (ADCs), this candidate is poised to become a best-in-class novel drug. It is scheduled for Investigational New Drug (IND) application submission next year and holds promise as a viable therapeutic option for solid tumors with low target expression, such as breast cancer and lung cancer.

Kangyuan Jiuyuan currently operates two technology platforms, each capable of supporting the development of additional products through target switching. While pursuing independent R&D, the company seeks strategic collaborations with more partners to accelerate progress.

Xie Bin, Vice President of Guozhong Capital Investmentstated: “We are highly optimistic about Kangyuan Jiuyuan’s PEG dual-linker technology platform, as well as the founding team’s forward-looking vision and unique technical barriers in this niche sector. While continuously advancing clinical progress, they are accelerating the development of their preclinical pipeline. As a long-term player in the biopharmaceutical sector, Guozhong Venture Capital looks forward to witnessing new breakthroughs in China in this field together with Kangyuan Jiuyuan.”

Dr. Wu Yanjun, Managing Director at VBInsightstated, “Fenxiang Investment is the exclusive investor in Kangyuan Jiuyuan’s pre-A round. This additional investment underscores our continued confidence in the company’s growth trajectory. Over the past two-plus years, Kangyuan Jiuyuan has made progress across all key areas in line with expectations and has established a PEG-based bispecific linker technology platform that enables rapid development of bispecific antibodies and bispecific antibody-drug conjugates (ADCs). This progress also highlights the founding team’s extensive expertise in drug R&D. Their PEG-based bispecific linker-enabled bispecific antibodies and bispecific ADCs have already demonstrated promising differentiation and yielded excellent preclinical data. Through this follow-on investment, we aim to accelerate the translation of their novel technological advantages into superior clinical benefits.”

Chen Xiaoying, Vice President of Investment at Tianfu Sanjiang Capitalstated: “We are fully aware of the challenges and issues in ADC drug development, which not only limit the application scope of this technology but also significantly reduce the success rate of development and its commercialization prospects. As a platform technology, Kangyuan Jiuyuan’s PEG dual-linker technology greatly enhances the success rate of ADC drug development, addressing core issues such as druggability and safety during product development, and demonstrating the potential for continuous development of blockbuster products. We hope that, through this financing round, the company can rapidly advance its products into clinical trials and become a game-changer in this field.”

Zhang Lei, Chairman of Leimeires Venture Capitalstated: “Currently, the development of each bispecific antibody candidate requires the establishment of a unique cell line, which fails to keep pace with the future rhythm of multi-pipeline development and essentially constitutes a waste of resources. The polyethylene glycol (PEG)-based bispecific linker technology developed by Kangyuan Jiuyuan is impressive. One of its key advantages is the implementation of rapid antibody domain conjugation technology, enabling pharmaceutical companies to flexibly select off-the-shelf monoclonal antibody domains based on indications and rapidly construct new drug candidates, offering limitless prospects. Furthermore, in analyzing the preclinical data of JY108, we speculate that JY108 may possess unique tissue distribution specificity, which represents a scarce resource. Therefore, our company is optimistic about Kangyuan Jiuyuan’s future development and is taking concrete actions to facilitate the early market launch of JY108.”

Guozhong Capital currently manages two physical funds under the National SME Development Fund. Its subsidiary, Guozhong Venture Capital (i.e., Shenzhen Guozhong Venture Capital Management Co., Ltd.), manages the first physical fund of the National SME Development Fund, while Guozhong Changrong (i.e., Shenzhen Guozhong Changrong Asset Management Co., Ltd.) manages the Phase II Fund of the National SME Development Fund. The total assets under management have exceeded RMB 10 billion. Guozhong Capital advocates an investment philosophy of “research-first” and the integration of investment and research. It guides its investments through in-depth industry chain analysis, focusing on investment opportunities in strategic emerging industries. Key areas of interest include outstanding enterprises in big data, cloud computing, cybersecurity, and enterprise services; semiconductors, electronic information technology, and artificial intelligence; new consumption and internet applications; new energy vehicles and intelligent driving; new materials, new energy, ecological protection, and intelligent equipment; as well as biopharmaceuticals and general health.

FenXiang Investment, established in Shenzhen in 2007, is one of China’s earliest professional venture capital firms structured as a limited partnership. It has invested in over 200 companies and currently manages assets exceeding RMB 8 billion. Since 2010, FenXiang Investment has strategically expanded into the healthcare sector, focusing on precision medicine. By benchmarking against global R&D standards and catering to the demands of China’s emerging market, the firm concentrates on four key areas: biotechnology, new drug development, innovative healthcare services, and cutting-edge medical devices. Currently, it manages four healthcare-themed funds, supported by an independent, specialized medical investment team of 12 professionals with extensive investment experience and strong expertise. To date, the firm has invested in more than 80 healthcare projects, with the total size of its healthcare funds reaching nearly RMB 3 billion.

Tianfu Sanjiang Asset Management Co., Ltd. was established in June 2019 and currently manages an investment portfolio exceeding RMB 3 billion, with investments spanning innovative drugs, emerging consumer sectors, and technology-driven manufacturing.

Lemeires Venture Capital, established in 2016, specializes in value investing within the semiconductor, biopharmaceutical, and consumer sectors. The firm is dedicated to identifying small and medium-sized enterprises with high growth potential and latent commercial value, as well as growth-oriented companies with clear prospects for an initial public offering (IPO). Committed to serving as a long-term strategic partner, Lemeires provides continuous support and assistance to accompany its portfolio companies throughout their growth journey.

Jian Yi Hui (Chaoshan Capital), established in 2011, is the most active primary market investor community in China. It boasts nearly 2,000 members (over one-third of whom are partners) and covers close to 1,000 institutions. Its investment portfolio encompasses virtually all star projects in the market. The member institutions basically cover the top 50 firms ranked by Zero2IPO. Jian Yi Hui’s financial advisory services focus on the healthcare and technology sectors, facilitating seven transactions with a total value of nearly RMB 2 billion in 2020.