Transcenta Holding Ltd. Files Prospectus to Establish Itself as a Fully Integrated Global Biotherapeutics Leader

On January 2, 2019, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that HJB and MabSpace Biosciences (MabSpace) announced the signing of a definitive merger agreement to establish Transcenta Holding Ltd. (Transcenta). The new entity is a world-class biotherapeutics company with fully integrated capabilities in the research, development, regulatory affairs, and manufacturing of biologics. Dr. Qian Xueming, former founder, chairman, and CEO of MabSpace, will serve as CEO of the combined company, while Dr. Zhao Yining, co-founder and CEO of HJB, will serve as Executive Chairman.

MabSpace, established in 2013, is a clinical-stage biotechnology company dedicated to the discovery, clinical research, and commercial development of innovative biologics, with a particular focus on antibody therapies for cancer and other diseases. Headquartered in Hong Kong, MabSpace operates a 15,000-square-meter antibody R&D center at the BioBAY (Suzhou Industrial Park) in Suzhou, China. The company employs a team of sixty professionals responsible for discovery and translational research, process development, clinical and commercial development, and regulatory affairs. Leveraging its proprietary antibody generation platform and immune tolerance breakthrough technologies, MabSpace has built an innovative and rapid pipeline of best-in-class antibody programs in oncology, ophthalmology, and nephrology.

HJB, founded in 2016, is dedicated to designing and applying innovative bioprocessing technologies to accelerate the research, development, and manufacturing of biologics. With global sites established in Shanghai, Hangzhou, and Boston, HJB boasts a global talent pool comprising over 100 scientists, clinicians, and bioengineers. The company operates 42,000 square meters of state-of-the-art POD production facilities equipped with next-generation continuous processing technology, enabling the rapid development of high-quality biotherapeutics while significantly reducing production costs, thereby making these biologic drugs more affordable for the global population. Through licensing agreements, HJB has secured rights to multiple leading next-generation immunotherapy antibody projects in China and worldwide.

By fully leveraging and combining the complementary capabilities of HJB and MabSpace, Transcenta will be equipped with a senior team possessing extensive global experience in biotherapeutics discovery and development, comprehensively integrating its internal capabilities in biotherapeutics discovery, development, and manufacturing. Transcenta will establish R&D centers worldwide: a Discovery and Translational Research Center in Suzhou; a Process and Product Development Center and manufacturing facility in Hangzhou; and clinical R&D centers in Shanghai, Beijing, and Boston, USA. The merged company will have more than 10 innovative drug development pipelines. Transcenta aims to shorten the timeline from target identification to BLA submission and will make high-quality next-generation GMP facilities available to support the development and commercialization of both internal and strategic partner pipelines.

“We are delighted to merge with MabSpace. The newly merged entity will combine the strengths of MabSpace and HJB in discovery, development, and manufacturing,” said Dr. Jonathan Y. Zhao, Executive Chairman of Transcenta. “MabSpace and HJB have a joint R&D pipeline with more than 10 preclinical and clinical pipeline products. By leveraging HJB’s advantages in research and clinical development, and integrating biomanufacturing technologies, Transcenta will continue to provide high-quality, affordable biologics to patients worldwide, creating greater value.”

“I would like to thank investors from both sides for their full support of this strategic combination. Through the merger of HJB and MabSpace, we can achieve critical mass, significantly accelerating the development and commercialization of our innovative drug pipeline, and establishing Transcenta as a truly fully integrated, biotherapeutics-focused global biotechnology company. This not only shortens development timelines but also delivers high-quality biotherapeutics at lower costs, ensuring affordability and sustained profitability. We aim to build Transcenta into an enduring biotechnology company that provides patients with high-quality innovative medicines and creates value for shareholders worldwide,” added Dr. Qian Xueming, Co-founder and CEO of Transcenta.

To date, HJB and MabSpace have raised approximately $160 million from prominent investors, including Lilly Asia Ventures, Temasek, Sequoia China, ARCH Venture Partners, Teng Yue Partners, and Taikang. Transcenta is open to strategic collaborations with global biotechnology companies to further expand its product portfolio and enhance its technological capabilities.

BFC Group Ltd served as the exclusive financial advisor for this transaction. Han Kun Law Offices acted as legal counsel for the merger transaction. Sidley Austin LLP served as legal counsel to MabSpace.

ARCH Venture Partners is one of the largest early-stage technology venture capital firms in the United States. ARCH has co-founded and provided seed funding to more than 230 companies, which were established by research universities, national laboratories, corporate research groups, and entrepreneurs focused on innovations in the life sciences and physical sciences.

Lilly Asia Ventures (LAV) is a leading biopharmaceutical venture capital firm with offices in Shanghai, Hong Kong, and Palo Alto.

Sequoia China’s team helps bold founders build legendary companies. As “entrepreneurs behind entrepreneurs,” Sequoia China focuses on four sectors: TMT, healthcare, consumer/services, and industrial technology, and has partnered with more than 500 companies in China over the past 14 years.

Taikang is a leading insurance and financial services group in China. The company operates three major business segments, including insurance, asset management, and health and elderly care. Taikang’s primary investments in the healthcare sector include companies such as WuXi AppTec, Mindray Medical, and Innovent Biologics.

Temasek, established in 1974, is a global investment company headquartered in Singapore. Supported by its network of international offices, Temasek held a portfolio valued at S$308 billion (US$235 billion, or RMB 14.8 trillion) as of March 31, 2018, with substantial investments in Singapore and other parts of Asia.

Teng Yue Partners is a New York-headquartered investment firm specializing in equity investments in China. The company makes equity investments in Chinese enterprises by leveraging a rigorous, fundamentals-driven investment process that capitalizes on its global perspective and local expertise.