Exegenesis Bio Inc. Files for Hong Kong IPO Following Rapid $Tens-of-Millions Series B+ Financing Round

Recently, Exegenesis Bio Inc. (“Exegenesis Bio”), a leading domestic gene therapy enterprise, successfully closed a Series B+ financing round worth tens of millions of US dollars, just five months after its previous funding round. The round was led by LYFE Capital, with participation from GL Ventures. Existing investors, including Legend Capital, Xianfeng Qiyun, BioTrack Capital, and Kaitai Capital, continued to increase their investments. Grandview Capital served as the exclusive financial advisor for this round. The proceeds will be used to advance the clinical development of the company’s multiple gene therapy pipelines and to construct large-scale cGMP manufacturing facilities.

Exegenesis Bio, founded in July 2019 and located in the Hangzhou Provincial Pharmaceutical Port Town, is an innovative biopharmaceutical company dedicated to providing the most viable gene therapies to the global market. The company has assembled a premier team of top scientists and entrepreneurs in the industry, forming a comprehensive powerhouse with expertise spanning gene therapy drug design, preclinical research, CMC development, GMP manufacturing, clinical trials, operational management, and business development (BD). Exegenesis Bio not only possesses strong, differentiated competitive advantages in pipeline selection and technology platforms but also boasts internationally leading capabilities in viral vector production processes and large-scale manufacturing. Notably, it constructed a gene therapy production facility compliant with Chinese, U.S., and European cGMP standards in just four months. Its scalable, cost-controllable platform technologies and large-scale production capacity effectively accelerate the advancement of multiple product lines from development through clinical stages to commercialization. The company’s vision is to provide transformative, one-time curative, safe, effective, and affordable gene therapies for patients in China and around the world.

Exegenesis Bio has demonstrated formidable capabilities in addressing critical industry challenges in gene therapy, including the design and screening of viral vectors with high tissue specificity, low immunogenicity, high transduction efficiency, and robust long-term expression, as well as the stable, large-scale, and cost-effective production of high-purity viral vectors. The company is poised to stand out among its domestic peers and possesses the potential to become a unicorn.

In 2020, overseas gene therapy companies entered a boom phase for initial public offerings (IPOs), with seven gene therapy firms going public throughout the year and raising a total of $1.2 billion, representing a 173% increase compared to 2019. Five companies achieved IPO valuations exceeding $700 million in 2020: Beam Therapeutics, Generation Bio, Poseida Therapeutics, Passage Bio, and Taysha Gene Therapies. This increase in the number of IPOs, compared to BridgeBio’s IPO in 2019 and Orchard Therapeutics’ IPO in 2018, further validates the secondary market’s optimism toward gene therapies.

Overview of Overseas Gene Therapy Company IPOs, 2015–2020

Source: Compiled by Haoyue Capital

M&A transactions in the gene therapy sector in 2020 continued the heated trend observed in 2019. In January 2020, Astellas announced the completion of its approximately $3 billion acquisition of Audentes Therapeutics, a company specializing in AAV-based gene therapies for rare diseases. In October 2020, Bayer announced it would acquire AskBio, a company with an AAV vector screening, engineering, and optimization technology platform, for $4 billion. In December 2020, Eli Lilly announced it would acquire Prevail, a company dedicated to developing AAV9-based gene therapies for patients with neurodegenerative diseases, for $1.04 billion. Currently, major Western pharmaceutical companies such as Bayer, Eli Lilly, Novartis, Pfizer, Biogen, and Roche have actively entered the gene therapy field through mergers and acquisitions. It is expected that more large-scale M&A deals by multinational corporations (MNCs) will occur in the future.

Source: Compiled by Haoyue Capital

Dr. Wu Zhenhua, Founder & CEOIt was stated that gene therapy, as an emerging biological treatment modality, has finally entered a phase of rapid growth after more than 30 years of research accumulation and innovation, demonstrating significant application prospects in hundreds of indications across more than a dozen disease areas. China’s gene therapy sector is poised for a qualitative leap over the next five years. At Exegenesis Bio, we have driven innovations across our R&D pipeline, CMC processes, and technology platforms, aiming to be at the forefront of China’s gene therapy wave. We are fully confident in our ability to deliver groundbreaking innovative therapies to patients as soon as possible!

Mr. Chen Gang, Partner at LYFE Capitalstated that LYFE Capital focuses on investing in companies with long-term growth value. Exegenesis Bio is a company with tremendous potential in the field of gene therapy, boasting a rich pipeline of gene therapy products and a leading viral vector production platform. Since its establishment, Exegenesis Bio has demonstrated exceptional vision and strong execution capabilities in product development and advancement. In the future, we will join hands with Exegenesis Bio to accelerate the industrialization of gene therapy in China, benefiting patients with genetic disorders in China and around the world.

Mr. Wang Junfeng, Managing Director of Legend Capitalstated, “We are delighted to see the company’s rapid growth over the past year, having achieved its established strategic goals and made significant progress in team building, platform development, and pipeline advancement. We are also pleased that more investors have recognized the potential value of Exegenesis Bio, remain optimistic about the team’s long-term growth, and are joining forces to drive the development of China’s gene therapy industry!”

Mr. Wang Yunhai, Director of Xianfeng Qiyun InvestmentIt stated that since its investment in 2019, the Exegenesis Bio team has demonstrated strong cohesion, innovation, and execution, driving the company’s rapid growth and establishing it as a leading enterprise in China’s gene therapy sector. Xianfeng is honored to collaborate with the Exegenesis Bio team, supporting the company’s continued growth and advancing the development of China’s gene therapy industry!

Mr. Zhuang Qinggang, Executive Director of BioTrack CapitalBioTrack Capital stated that it remains firmly bullish on the industrial opportunities in the gene therapy sector. Since completing its previous round of investment, BioTrack Capital has been deeply impressed by the exceptional execution capabilities of the Exegenesis Bio team. It is a great honor for BioTrack Capital to have the opportunity to further increase its investment in the Exegenesis Bio project.

Mr. Chang Nannan, Executive President of Kaitai Capitalstated, “Kaitai Capital has always adhered to value investing. We are honored to partner with the Exegenesis Bio team and witness the company’s rapid growth. In the future, we will continue to support more entrepreneurs in exploring the frontiers of biotechnology.”

Mr. Li Yishi, Partner at Haoyue Capitalstated, “We are deeply honored to have served as the exclusive financial advisor for Exegenesis Bio across two consecutive financing rounds in 2020. As a groundbreaking technology, gene therapy offers the promise of a ‘cure’ for many refractory diseases in humans, particularly genetic disorders caused by gene defects. However, due to the high technical barriers associated with vector optimization and large-scale manufacturing, domestic enterprises in this field are still in their early stages. Over the past year, the Exegenesis Bio team has demonstrated exceptional execution capabilities and the strength to overcome industry barriers, making it a scarce and valuable asset in the Chinese market. We are optimistic about Exegenesis Bio’s growth potential and feel privileged to grow alongside such an outstanding enterprise.”

LYFE Capital is a healthcare-focused investment fund established in 2015, with approximately $1.3 billion in assets under management. LYFE Capital is dedicated to investing in healthcare companies in the Chinese and U.S. markets that boast exceptional management teams and ambitious visions. Its investment focus areas include innovative biopharmaceuticals, medical devices, and medical diagnostics. LYFE Capital works closely with its portfolio companies, providing not only financial support but also assisting with business expansion, identifying overseas partners, actively supporting strategic and team development, and facilitating product approvals and market access. For LYFE Capital, portfolio companies are not merely investment projects but long-term partners.

Hillhouse Ventures is the venture capital fund under Hillhouse that focuses on early-stage innovative companies. It primarily specializes in venture investments across four key sectors: biopharmaceuticals and medical devices, software and hard technology, consumer internet and technology, and emerging consumer brands and services. Biopharmaceuticals and medical devices have long been a core investment focus for Hillhouse. Over the past decade, Hillhouse has invested in more than 200 outstanding enterprises in the fields of biopharmaceuticals, medical devices, and healthcare services. We aim to partner with companies as “friends of time,” jointly driving innovation and development in the broader health sector to benefit more patients.

Legend Capital’s core business is positioned in venture capital for start-ups and growth investment for expanding companies. Currently, the total assets under management of Legend Capital’s USD and RMB funds exceed RMB 50 billion, with a key focus on innovation and growth opportunities in China. As of 2021, Legend Capital had invested in more than 500 portfolio companies, among which over 80 have successfully listed or been quoted on domestic or overseas exchanges, and more than 60 have exited through mergers and acquisitions.

K2VC, founded in 2010, has been committed to supporting and accompanying outstanding entrepreneurs in driving significant advancements in business and technology. Its affiliates, K2 Evergreen and K2 Qiyun, cover investments in sectors such as the internet, healthcare, and technology/consumer goods, having invested in over 500 high-growth startups. In the healthcare sector, K2 focuses on early-stage investments, driven by professional research, guided by clinical needs, and supported by a specialized post-investment service system. It strategically invests in innovative drugs and biotechnology, as well as novel diagnostic products and medical devices, nurturing multiple industry leaders across various sub-sectors.

BioTrack Capital, established in 2017, is a specialized investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. We are not just investors; we are long-term partners to entrepreneurs. We provide sustained support to the most exceptional healthcare founders, cultivating the next generation of leading enterprises in China’s healthcare industry.

Kaitai Capital, established in 2009, is a professional venture capital management firm primarily engaged in innovation investment, industrial investment, and wealth management. Currently, Kaitai Capital manages assets exceeding RMB 50 billion, with four core investment sectors: pharmaceuticals and biotechnology, digital health and digital healthcare, artificial intelligence and the digital industry, and community innovation and consumption upgrading.

HaoYue Capital was founded in January 2014, with a mission to serve as a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including biopharmaceuticals, innovative medical devices, IVD and precision medicine, healthcare services, and smart healthcare. The HaoYue Capital team comprises senior investment bankers with extensive experience in China’s healthcare sector. By closely monitoring market dynamics and investment trends in healthcare over the long term, the firm publishes weekly healthcare investment newsletters and thematic research reports, offering HaoYue’s perspectives on new policies and emerging frontiers.