Loyal Valley Capital Leads $40 Million Series B1 Financing in Hepacure Pharma to Advance Innovative Liver Disease Therapeutics Platform

VCBeat (WeChat: VCBEAT) has learned that Hepagene Therapeutics announced today the completion of a $40 million Series B1 financing round. The round was led by Loyal Valley Capital, with continued participation from existing investor Apricot Capital, and co-investment by Oceanpine Capital. The funds raised will be primarily used to advance the Phase II clinical trials of HPG1860, a farnesoid X receptor (FXR) agonist, as well as to propel the preclinical and clinical development of the company’s pipeline targeting NASH, HBV, and liver cancer.

Yachuang Pharma is a global innovative drug R&D enterprise founded in 2016, specializing in liver diseases. The company is dedicated to the research, development, and commercialization of innovative therapies for non-alcoholic steatohepatitis (NASH), hepatitis B virus (HBV) infection, and liver cancer, aiming to address unmet clinical needs among patients both domestically and internationally. Phase I clinical trial data from the United States for its independently developed FXR agonist, HPG1860, have demonstrated excellent safety profiles and distinct competitive advantages. Currently, the company is actively preparing for Phase II clinical trials targeting indications such as NASH, primary biliary cholangitis (PBC), and primary sclerosing cholangitis (PSC), as well as conducting clinical studies on combination therapies based on HPG1860.

Dr. Xu Xiaodong, CEO of Hepagene Therapeuticsstated: “We are delighted to have received the support and recognition of both new and existing investors for Hepagene Therapeutics. This financing will accelerate the advancement of our pipeline products. Through years of accumulation in drug R&D, Hepagene Therapeutics has established itself among the leaders in China’s liver disease segment. On one hand, the company is gathering top-tier pharmaceutical talent and leveraging industry advantages to lay a solid foundation for building a distinctive, innovative therapeutic platform in the field of liver diseases. On the other hand, it is closely monitoring leading global advancements in liver disease drug development to enrich its product pipeline. With the capital support from this round, the company will continue to deepen its expertise in the liver disease sector and evolve into an innovative new drug R&D enterprise with a global reach.”

Xie Ronggang, Partner at Loyal Valley Capitalstated: “Liver diseases represent a therapeutic area that is particularly challenging to cure, characterized by a vast global patient population and complex pathogenesis. There is a lack of effective standard treatments both in China and abroad, resulting in significant unmet medical needs. We believe that breakthroughs in liver disease treatment will emerge in the coming years. Hepagene Therapeutics focuses on the research and development of small-molecule drugs for liver diseases. Its founder has deep expertise in this field, and the team demonstrates strong execution capabilities. The company has established a comprehensive and synergistic pipeline of targets in NASH and HBV. With ingeniously designed products that have already demonstrated best-in-class potential in both clinical and preclinical studies, we are honored to participate in and lead this financing round for Hepagene Therapeutics. We look forward to working alongside the company to meet these challenges, jointly advancing the development of liver disease treatments, addressing the substantial unmet needs in this field, ensuring patients have access to high-quality medicines, and making the world a better place through our collective efforts.”

Mr. Qiang Jing, Managing Partner of Apricot Capitalstated: “Hepagene has established a comprehensive pipeline in liver disease indications, demonstrated astute target selection, and exhibited high execution efficiency in both preclinical and clinical studies. The indications currently covered by the company address significant unmet clinical needs, and multiple assets in Hepagene’s portfolio hold best-in-class potential in these areas. We are confident in the future prospects of the Hepagene team. Apricot Capital is honored to continue supporting Hepagene and looks forward to accompanying the company as it grows into an internationally influential innovative pharmaceutical enterprise focused on liver diseases.”

Mr. Chen Liguang, CEO and Managing Partner of HaiSong Capitalstated, “There is significant unmet clinical need in the field of liver diseases, representing a vast market opportunity. Hepagene focuses on the liver disease sector, with strategic investments in indications such as NASH, hepatitis B, and liver cancer. The company has developed a pipeline of drugs targeting diverse mechanisms and pathways, demonstrating substantial therapeutic potential in preclinical and clinical studies, with the prospect of becoming best-in-class therapies. The company’s management team has deep expertise in the liver disease field, bringing extensive experience and keen insight. We are confident in the company’s growth prospects. Haisong Capital is honored to support Hepagene as an investor, standing at the forefront of innovation alongside the company and growing with it.”

Hepagene Therapeutics is a global innovative drug R&D enterprise founded in 2016, specializing in liver diseases. The company is dedicated to the research, development, and commercialization of innovative therapies in three major disease areas: non-alcoholic steatohepatitis (NASH), hepatitis B virus (HBV) infection, and liver cancer, aiming to address unmet clinical needs of patients both domestically and internationally. In the field of NASH, Hepagene has strategically targeted multiple high-potential candidates, aiming to fill therapeutic gaps worldwide through monotherapy or combination therapy strategies. For HBV, the company has focused on key targets across critical steps in the hepatitis B virus life cycle, striving to achieve functional and complete cures for hepatitis B. Addressing the high incidence of liver cancer, Hepagene has developed a dual approach involving targeted therapies and immunotherapies, with the goal of improving overall survival rates for liver cancer patients through systematic, multi-mechanistic, multi-dimensional, and multi-level treatments. The management team at Hepagene comprises professionals from renowned multinational pharmaceutical companies in Europe and the United States, bringing extensive experience in drug development and team management. Under their leadership, Hepagene has completed its strategic layout in the liver disease sector. Currently, its self-developed products have entered clinical trials in both China and the United States, while multiple other projects are progressively advancing toward regulatory approval and clinical stages.

Loyal Valley Capital was established in 2015. It has always adhered to the investment values of “long-term orientation, focus, and altruism,” striving to build China’s premier investment research and post-investment management teams. By conducting in-depth industry research and providing proactive post-investment support, it partners with outstanding entrepreneurs to co-create great enterprises that represent the future growth direction of China’s economy and generate value for society. Since its inception, Loyal Valley Capital has invested in a portfolio of leading companies that embody the future trajectory of China’s economic development, including Bilibili, ByteDance, POP MART, Perfect Diary, NetEase Cloud Music, Junshi Biosciences, InnoCare Pharma, Akeso Biopharma, Henlius Biotech, Supcon Technology, Bayi Space, and Avary Holding.

Apricot Capital, established in 2015, derives its name from the aspiration to leverage capital investment to integrate resources across the broader health industry, thereby promoting sector development and benefiting humanity. The firm currently manages over RMB 3 billion in assets. Its investment team comprises more than 20 professionals and advisors with extensive experience in healthcare and medical investments globally, boasting diverse expertise in life sciences, pharmaceuticals, finance, and law. Since its inception, Apricot Capital has focused on investing in outstanding early-stage and growth-stage enterprises within the healthcare sector, with a portfolio spanning biopharmaceuticals, medical devices, and related fields. Committed to fostering innovation and growth among Chinese enterprises and advancing industrial and social progress, Apricot Capital leverages its team’s rich industry experience, global resource network, and esteemed reputation to tirelessly support entrepreneurs in realizing their startup aspirations.

Haisong Capital is a professional investment management firm dedicated to long-term and value investing. It focuses on investing in high-tech and healthcare enterprises led by innovative technologies, particularly those with breakthrough and revolutionary innovations. Its areas of interest include AI, semiconductors, 5G, cloud computing, enterprise services, big data, new energy, new materials, cybersecurity, the Internet of Things (IoT), innovative drugs, and innovative medical devices. Haisong Capital’s portfolio companies in the healthcare sector include Xinnuowei Biologics, Clover Biopharmaceuticals, Yisheng Biopharma, Immune-Onc, Apexigen, XtalPi, ClearMed, BoYa JiYin, Jacobio Pharmaceuticals, and Ansun Biopharma, among others. Over the past three years, Haisong Capital has invested in more than thirty leading healthcare companies across China and the United States. By providing long-term, sustained support to outstanding entrepreneurs, complemented by Haisong’s international operational management expertise and extensive industry resources, the firm aims to accelerate corporate growth and jointly build world-class, first-rate enterprises.