Connect Biopharma Secures $55 Million Series B Financing to Accelerate Development of Novel Immunomodulators

VCBeat (WeChat: vcbeat) has learned that Suzhou Connect Biopharmaceuticals, Ltd. (“Connect Biopharma”) recently completed a $55 million Series B financing round. The round was led by Shangcheng Investment, with existing shareholders Qiming Venture Partners, Kaifeng Ventures, and Northern Light Venture Capital participating as co-investors. CEC CAPITAL served as the exclusive financial advisor to Connect Biopharma for this financing transaction. (See detailed news:)Connect Biopharma Completes $55 Million Series B Financing to Accelerate Development of Novel Immunomodulators）

Connect Biopharma is a China-based innovative pharmaceutical company dedicated to the discovery and development of novel immunomodulators for the treatment of autoimmune and inflammatory diseases. Its product portfolio covers multiple autoimmune indications, including ulcerative colitis (UC), Crohn’s disease (CD), multiple sclerosis (MS), atopic dermatitis (AD), and asthma.

Dr. Pan Wubin, Co-founder and Chairman of Connect Biopharma, stated, “The success of this financing round during the capital winter reflects investors’ heightened focus on the significant unmet needs in autoimmune diseases and inflammatory disorders, as well as their strong recognition of Connect Biopharma’s unique technology platform and its strategic advantages in advancing its novel drug pipeline.”

It is reported that Connect Biopharma completed three rounds of financing between 2016 and 2018, gaining favor from prominent funds such as New Horizon Capital, Qiming Venture Partners, Northern Light Venture Capital, and Kaifeng Capital. What exactly attracted these investors to Connect Biopharma? How were the raised funds effectively utilized? And what does the investment banking community regard as Connect Biopharma’s core competitiveness?

To this end, VCBeat conducted exclusive interviews with Dr. Pan Wubin, Co-founder and Chairman of Connect Biopharma; Dr. Zheng Wei, Co-founder and CEO of Connect Biopharma; and Zhang Xiao, Vice President of CEC CAPITAL, to gain their perspectives on Connect Biopharma.

Connect Biopharma is dedicated to the discovery and development of novel immunomodulators for the treatment of autoimmune diseases and inflammation. The company possesses a unique new drug R&D platform covering two major immune signaling pathways (Th1 and Th2), enabling the rapid development of high-value innovative drugs targeting pathways with high druggability.

Dr. Zheng Wei, Co-founder and CEO of Connect Biopharma, stated that while many domestic pharmaceutical companies rapidly build their new drug pipelines and expand into the Chinese market by licensing in foreign products (License-in), Connect Biopharma places greater emphasis on independent innovation and R&D to secure globally patented products. The company is advancing clinical trials both domestically and internationally, and actively collaborating with major global pharmaceutical companies for late-stage product development and international market expansion.

VCBeat has learned that Connect Biopharma will primarily allocate the funds from this financing round to the following four areas:

1. Advance the two ongoing Phase II clinical trials of the Company’s investigational innovative drug CBP-307 (a next-generation S1P1 modulator) for the treatment of ulcerative colitis (UC) and Crohn’s disease (CD);

2. Support the Phase Ib clinical trial of the company’s other innovative drug, CBP-201 (a high-affinity IL-4Rα antibody), for the treatment of patients with atopic dermatitis;

3. Support the preclinical development of a series of other product pipelines;

4. Expand the R&D and management teams.

It is reported that following the closing of this round of financing, Ms. Jin Jinghua, Partner at Shangcheng Investment, will join the Board of Directors of Connect Biopharma. Dr. Pan Wubin stated that with Shangcheng Investment’s entry, Connect Biopharma will also receive greater support in terms of industry-related resources. This financing is crucial to the company’s future strategic layout. With the completion of this round, Connect Biopharma has officially entered a phase of rapid development.

As the investment banking advisor for this transaction, Zhang Xiao, Vice President of CEC CAPITAL, stated: “Connect Biopharma is one of the few innovative pharmaceutical companies in China whose products possess international competitiveness and whose clinical development ranks among the global leaders. The druggability and market potential of its products have been effectively validated. Such enterprises are more likely to be favored by top-tier US dollar funds during a capital winter.”

CEC Capital was founded in 2000, focusing on three major sectors globally: TMT, consumer, and healthcare. The healthcare sector is a key area of focus for CEC Capital. Regarding the Connect Biopharma project, Zhang Xiao stated that what attracted CEC Capital most to the project was its excellent product pipeline and team:

In terms of its product pipeline, Connect Biopharma’s CBP-307 and CBP-201 are both blockbuster candidates with the market potential to generate annual sales in the billions of U.S. dollars. Their clinical development progress ranks among the most advanced globally, and they exhibit high druggability. With controllable risks, these assets hold significant potential for rapid commercial success.

In terms of the team, Dr. Pan Wubin co-founded the renowned enterprise WuXi AppTec (formerly known as China-Bio), bringing extensive experience in biotech operations, while Dr. Zheng Wei has over 20 years of leadership experience in novel drug development for autoimmune diseases at top U.S. biotech firms, including Arena Pharmaceuticals. Together, their partnership represents a powerful synergy of commercial expertise and technological innovation within an innovative pharmaceutical company.

Zhang Xiao stated that CEC CAPITAL was honored to advise Connect Biopharma on this financing round and expressed confidence in its long-term commitment to supporting Connect Biopharma’s growth into a leading global company in the field of autoimmune diseases.