Chinese Gene Therapy Leader Exegenesis Bio Secures Tens of Millions in Series B Funding and Files for Hong Kong IPO

Recently, VCBeat learned that gene therapy company Exegenesis Bio Inc. (“Exegenesis”) has successfully completed a tens-of-millions-of-U.S.-dollars Series B financing round. The round was led by Legend Capital, with participation from Boyuan Capital, Taifu Capital, and existing investors Xianfeng Qiyun and K2VC. Joywise Capital served as the exclusive financial advisor for this financing round.The proceeds from this financing round will be used to advance the clinical development and R&D of the company’s multiple gene therapy pipelines.

Exegenesis, founded in July 2019 and headquartered in Hangzhou, is an innovative pharmaceutical company dedicated to providing accessible gene therapies to the global market. The company has assembled a top-tier team of scientists and entrepreneurs from the industry, forming a robust force across technology, manufacturing, operations, management, and business development (BD).

Exegenesis not only possesses differentiated competitive advantages in product line selection and technological platforms, but also demonstrates internationally leading capabilities in manufacturing processes and large-scale mass production. It constructed a gene therapy production facility compliant with cGMP standards in China, the United States, and Europe in just four months. Its scalable, cost-controllable platform processes and large-scale production capacity can effectively accelerate the clinical advancement of the company’s multiple product lines.

The company’s vision is to provide groundbreaking, one-time curative gene therapies that are safe, effective, and affordable for patients.

Exegenesis’s founding team brings extensive experience in gene and cell therapy development, with each member having worked for over 15 years at leading U.S. gene therapy companies. The team is fully staffed with complementary expertise, boasting a proven track record of industry success in gene therapy drug design, preclinical research, and clinical development, as well as top-tier capabilities in gene therapy process development and large-scale GMP manufacturing.

From left to right: Wu Zhenhua, Founder and CEO of Exegenesis Bio; Ye Guojie, Co-founder and CSO; Wang Lijun, Co-founder and CTO

Among them,Dr. Wu Zhenhua, Founder and CEOWith nearly 20 years of R&D and management experience at major international pharmaceutical companies and startups. After obtaining his Ph.D. from the University of Rochester in the United States, Dr. Wu engaged in drug R&D in the U.S. for many years. He has successively served as Senior Scientist and Principal Scientist at Merck & Co., Associate Director and Director at GlaxoSmithKline, Vice President at United Neuroscience, and CEO of NeuExcell.

Dr. Wu has long been engaged in the development of gene therapies, leading multiple gene and cell therapy initiatives in the field of neuroscience at GlaxoSmithKline and NeuExcell. He served as President of the Sino-American Pharmaceutical Professionals Association – Greater Philadelphia Chapter (SAPA-GP) for many years and possesses extensive experience in team recruitment, management, and operations.

Dr. Ye Guojie, Co-founder and CSOWith over 20 years of experience in drug R&D and management in the United States, I have long been engaged in preclinical R&D of gene therapy vectors. I previously established and managed the R&D department at Applied Genetics Technologies Corporation (AGTC), a U.S.-based gene therapy company, overseeing the entire R&D process from target discovery, vector construction, small-scale viral production, and functional assays to GLP toxicology and pharmacology studies (IND-enabling studies).

After earning his Ph.D. from the Shanghai Institute of Organic Chemistry, Chinese Academy of Sciences, Dr. Ye conducted postdoctoral research in molecular biology and the molecular genetics of HSV oncolytic viruses at Cornell University and the University of Chicago in the United States. Dr. Ye previously served as Scientist and Senior Scientist at MediGene, and as Director, Senior Director, and Executive Director of R&D at AGTC. He successfully submitted four IND applications to the FDA within three years, all of which were approved for clinical trials.

Co-founder and CTO, Wang LijunWith 15 years of experience in process development and manufacturing in the United States, including 13 years dedicated to work related to gene therapy vectors. After obtaining her master’s degree from the University of Kansas, she has been working in the U.S. pharmaceutical industry, holding positions such as R&D Scientist at Deciphera Pharmaceuticals, Senior R&D Scientist at AGTC, Senior Downstream Process Development Scientist at Florida Biologix, Manager, Director of Process and GMP Manufacturing, Director of GMP Drug Substance (DS) Manufacturing at Brammer Bio, and Director of Process and Manufacturing at Encoded Therapeutics.

She possesses extensive experience in process development, cGMP manufacturing, and team management for biologics, including AAV, LV, recombinant proteins, and antibodies. With an in-depth understanding of viral vector production platforms and technical bottlenecks, she has led the delivery of more than 20 viral batches used in Phase I, II, and III clinical trials, most of which were administered to humans in clinical trials for the first time worldwide. She is highly proficient in analytical methods for viral vectors and CMC manufacturing standards. She served as the overall Process Lead, participating in or spearheading the design of fourGMP Workshop for Virus Production.

Gene therapy, which leverages DNA sequences to express proteins required for disease cure, offers the potential for a “one-time cure” and stands as a prospective game-changer for various refractory diseases, particularly genetic disorders. In 2018, Science published an article declaring the dawn of the gene therapy era. By 2020, the field witnessed explosive global growth: six gene therapies had been approved for market, five were at the Biologics License Application (BLA) stage, and 20 had entered Phase III clinical trials. The scope of gene therapy has expanded from early single-gene inherited disorders to 16 disease areas and 191 indications, including common conditions with large patient populations such as Parkinson’s disease and Alzheimer’s disease.

Source: Compiled by Haoyue Capital

Capital markets have shown strong enthusiasm for gene therapy. According to incomplete statistics, in 2019, more than 13 overseas gene therapy companies completed private equity financing, with total funding exceeding $2 billion, representing a year-on-year increase of over 56% compared to 2018.

Source: DealForma, compiled by Haoyue Capital

In terms of mergers and acquisitions, multinational pharmaceutical giants such as Pfizer, Novartis, and Roche have actively expanded into the gene therapy sector globally, with three acquisitions exceeding $5 billion. Meanwhile, several gene therapy companies have achieved remarkable success in public markets; for instance, Beam and Passage BIO, which went public in 2020, saw their market capitalizations reach $1.49 billion and $1.19 billion, respectively, despite their products being only in the preclinical research stage and still some way from filing an Investigational New Drug (IND) application.

Source: Compiled by Haoyue Capital

As a groundbreaking emerging technology, gene therapy presents exceptionally high technical barriers, with few domestic candidates having obtained clinical trial approvals to date. Many companies face significant challenges in vector design and manufacturing. The ability to design or screen for gene vectors that exhibit high tissue specificity, low immunogenicity, high transduction efficiency, and robust, long-term expression directly determines therapeutic efficacy. Likewise, the capacity to stably produce high-purity gene therapy vectors at large scale and low cost directly dictates a company’s industrialization capabilities. The founding team of Exegenesis has demonstrated proven success in addressing these critical challenges, positioning the company to stand out among its domestic peers and highlighting its potential to become a unicorn.

Dr. Wu Zhenhua, Founder and CEO, stated“After more than 30 years of research accumulation and innovation, gene therapy, as an emerging biotherapeutic approach, has finally entered a phase of rapid growth, demonstrating tremendous application potential across hundreds of indications in over a dozen disease areas. At Exegenesis Bio, we are driving innovation in multiple aspects, including viral vector design and construction, early-stage clinical trials, process development, GMP manufacturing, and clinical trial design, with the aim of establishing a complete industry chain encompassing early R&D, clinical testing, and commercial-scale production. We are confident in our ability to deliver groundbreaking innovative therapies to patients at the earliest possible time.”

Mr. Wang Junfeng, Managing Director of Legend Capital, stated“Gene therapy features novel drug development mechanisms and delivery platforms, with the potential for a significant number of therapies to reach the market in the next five to ten years, making it a hot area of focus for international pharmaceutical companies. China’s gene therapy industry is just getting started, and there is an extreme scarcity of talent in AAV research and development, process development, and manufacturing. As a company founded by overseas returnees, Jiayin has effectively integrated rare talent resources within the industry, building a complete core team with practical experience across R&D, process development, and manufacturing. This positions the company to become a leading gene therapy enterprise in China and to compete internationally. Legend Capital has been conducting systematic research in the field of gene therapy. It was our strong belief in the tremendous opportunities in this sector, combined with confidence in the extensive experience and first-mover advantage of the management team led by Mr. Wu, that prompted us to invest decisively. We look forward to closer and deeper collaboration with the company in the future to drive the development of China’s gene therapy industry!”

Mr. Wang Yunhai, Director of Investment at Xianfeng Qiyun, stated: “Guided by a patient-centric philosophy, Exegenesis Bio is dedicated to developing gene therapy drugs, targeting the global market while upholding innovation. Within nine months, the company successfully established a robust R&D pipeline and a GMP-compliant manufacturing platform, and smoothly completed a new round of financing, truly embodying the team’s original aspiration to ‘grow at China speed into a leader in the field of gene therapy.’”

Mr. Chang Nannan, Vice President of Kaitai Capital, stated“In the frontier of innovative drug development, K2VC adheres to the philosophy of ‘investing in people and investing in the future.’ Since our investment last year, Exegenesis has demonstrated exceptional innovation capabilities and execution strength in both R&D and industrialization. We believe that Exegenesis will bring more good news to patients in the future!”

Mr. Chen Penghui, Founding Partner of Boyuan Capital, stated“After decades of exploration, gene therapy, as a platform technology, has reached the tipping point for commercialization and has demonstrated clinical efficacy approaching curative outcomes in numerous genetic disorders. Meanwhile, in the field of chronic diseases, antibody therapies using AAV vectors have also shown encouraging preliminary data. We are highly optimistic about the clinical prospects of gene therapy in China and are honored to partner with the Jiayin team, hoping to bring tangible benefits to patients in China at the earliest possible date.”

Mr. H.J. Jiang, Managing Partner at Taifu Capital, stated“The era of gene therapy has arrived. With proof of concept already established in the field of rare diseases, gene therapy holds immense potential for future expansion into the treatment of common conditions. The team at Jiayin Biologics boasts extensive industry experience in gene therapy, covering the entire value chain from vector design to manufacturing, and is poised to become a leading enterprise in China’s gene therapy sector. Taifu Capital is honored to partner with Jiayin Biologics to jointly advance the development of gene therapy products, striving for early market approval to benefit patients in China.”

Mr. Li Yishi, Partner at Haoyue Capital, stated“Gene therapy, as a groundbreaking technology, has brought hope for a ‘cure’ to many intractable human diseases, particularly genetic disorders caused by gene defects. However, due to the high technical barriers associated with vector design and large-scale manufacturing, domestic companies are still in their early stages. The founding team of Exegenesis has over 15 years of experience working at renowned overseas gene therapy companies, possessing top-tier capabilities in gene drug design, process development, and GMP-compliant manufacturing. As a scarce and valuable asset in the domestic market, we are optimistic about Exegenesis’s growth potential and feel honored to grow alongside such an outstanding enterprise.”

Legend Capital is an independent professional venture capital firm under Legend Holdings, established in April 2001. Its core business focuses on early-stage venture capital and growth-stage expansion investment, with a strategic emphasis on TMT and innovative consumption, professional services and intelligent manufacturing, healthcare, and culture and sports sectors. The total assets under management in USD and RMB funds exceed RMB 50 billion, with a primary focus on innovation and growth opportunities in China. As of 2020, Legend Capital had invested in nearly 450 portfolio companies, among which more than 70 have successfully listed or been quoted on domestic or overseas stock exchanges, and over 60 have exited through mergers and acquisitions. Representative investments in the healthcare sector include WuXi AppTec, KingMed Diagnostics, Pharmaron, Innovent Biologics, and Mingde Biology.

Founded in 2010, Xianfeng is an early-stage investment firm focused on the new economy sector. It has invested in over 500 startups, covering stages from angel to Series B, and manages dual-currency funds in both RMB and USD. Its subsidiary, Xianfeng Qiyun, established in 2016, adopts a “research-driven” approach in the healthcare sector. Focusing on angel to Series A investments, it prioritizes two key tracks: innovative drugs and medical devices, and has invested in more than ten high-growth companies.

Cathay Capital was established in 2009 as a professional venture capital management firm, primarily engaged in innovation investment, industrial investment, and wealth management. Currently, Cathay Capital manages over RMB 50 billion in assets under management, with three core investment sectors: Life Sciences and Healthcare, Community Innovation and Consumption Upgrading, and Artificial Intelligence and the Digital Industry. In the field of Life Sciences and Healthcare, Cathay Capital adopts a methodology of “research-driven investment,” focusing on unmet medical needs. It has invested in more than 70 companies across various sub-sectors, including small-molecule oncology drugs, large-molecule therapeutics, gene and cell therapy, autoimmune diseases, antiviral treatments, metabolic disorders, and respiratory diseases.

BioTrack Capital, established in 2017, is a specialized investment firm dedicated to investing in and incubating outstanding healthcare startups in China. The founders and team members of BioTrack Capital come from healthcare startups, leading domestic biotechnology companies, multinational pharmaceutical corporations, and renowned professional service firms in the healthcare sector. They possess extensive experience in entrepreneurship, R&D, operations, and investment within the healthcare industry, along with deep industrial resources and rich sector expertise.

Taifu Capital was established in 2014, focusing on new drug development and research into novel medical technologies. It primarily invests in promising early-stage and growth-stage companies. The investment team brings years of experience and industry resources in these fields and is committed to helping portfolio companies grow into industry leaders.

Haoyue Capital was founded in January 2014, committed to serving as a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including biopharmaceuticals, innovative medical devices, in vitro diagnostics (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 updates and thematic research reports, offering Haoyue’s perspectives on new policies and emerging frontiers.