Elpiscience Secures $35 Million in Additional Funding Within One Year of Inception, Advances 12 Innovative Oncology Pipelines to Lead the Next-Gen Tumor Immunotherapy Revolution

Recently, VCBeat learned that Kewang Medicine, established just one year ago, has completed an additional $35 million in financing. The round was led by Hillhouse Capital, with participation from Lilly Asia Ventures and CDH Investments. To date, Kewang Medicine has secured a total of $55 million in investment.

Moreover, KeWang Medicine’s first clinical product officially submitted its Investigational New Drug (IND) application on November 20, 2018, marking the beginning of a significant milestone in their leadership of next-generation cancer immunotherapy.

Keswang Pharma is a biopharmaceutical R&D company dedicated to leading the global Oncology Immuno-oncology 2.0 revolution. Focusing on the most innovative frontier targets internationally, it strategically positions itself one step ahead in developing First-in-Class and Best-in-Class therapeutics. The company aims to build the world’s most comprehensive, innovative, and risk-balanced product pipeline, having currently established 12 independently developed pipelines covering key areas of tumor immunotherapy.

KeWang Medicine is an oncology immunotherapy company incubated as a key portfolio investment by Lilly Asia Ventures. From the establishment of its founding team to serving as the sole investor in its Series A round and collaborating with Hillhouse Capital and CDH Investments in the Series A+ round, Lilly Asia Ventures has been a steadfast partner, placing high expectations on KeWang Medicine.

In response, Lu Hongbo, Partner at Eli Lilly Asia Venture Fund, stated, “We are very fortunate to have the opportunity to collaborate with the CanSino team.” He believes that CanSino’s founding and management team represents an optimal combination of scientific expertise and business acumen, possessing strong capabilities in internal R&D and international licensing. The team submitted an Investigational New Drug (IND) application within just over a year of its establishment, demonstrating exceptional execution capability.

“We appreciate the participation of Hillhouse and CDH Investments, and we hope that this strong investor consortium will jointly support Kewang’s long-term development,” he added.

As the lead investor in this financing round, Hillhouse Capital established a specialized biopharmaceutical investment team early on, focusing on revolutionary biotechnologies and investing in a large number of high-quality innovative pharmaceutical companies.

Commenting on Hillhouse Capital’s lead investment in Keymed Biosciences, Yi Nuoqing, Partner at Hillhouse Capital, stated: “China’s technological innovation is undergoing a critical transition from imitation to original creation, and ultimately to global leadership. The pharmaceutical industry stands at the forefront of this wave of primary innovation. A cohort of innovative enterprises, represented by Keymed Biosciences, serves as the core driving force behind this historic leap. Their dedication and innovation in the field of tumor immunology are poised to usher in a new era of cancer immunotherapy, catalyze the upgrading of the entire industry, and bring greater hope to patients.”

“In fact, we have always been waiting for the leading talents from Kewang to embark on new entrepreneurial ventures,” said Zhang Li, Partner at CDH Innovation & Growth Fund. Zhang revealed that CDH holds great optimism about Kewang’s three outstanding individuals—three brilliant minds. This team combines exceptional R&D capabilities with extensive industry experience and entrepreneurial track records, forming a harmonious, complementary, and mutually reinforcing combination.

“Dr. Lu, Dr. Shen has led the R&D team to provide the company with sustained endogenous momentum for new product development, while Dr. Ji brings a global perspective and strategic vision, positioning the company with strong potential for external growth through mergers and acquisitions,” she continued. In investments involving innovative drugs, the founding team is paramount. This team undoubtedly boasts a wealth of successful experience and possesses core competitive capabilities. It is also a rare combination of diligence, pragmatism, efficiency, and reserve. Our years of waiting have finally yielded a favorable outcome.

Ji Xiaohui, CEO of Kewang Pharmaceutical, earned his M.D. in Clinical Medicine from China Medical University, his Ph.D. in Molecular Biology and Bioengineering from the University of Sheffield, and an MBA from the University of Chicago Booth School of Business. Mr. Ji previously served as Global Vice President at Roche, where he led business development, product licensing, and mergers and acquisitions in Asia and emerging markets. He also formerly held the position of Head of Business Development for P&G Pharmaceuticals in East Asia.

It is reported that during his tenure, Ji Xiaohui led his team in completing more than 20 key strategic partnerships and transactions, with a total transaction value exceeding $5 billion.

Figure caption: Ji Xiaohui, CEO of KeWang Medicine

Dr. Hongtao Lu, Co-founder and Chief Scientific Officer, earned his Ph.D. from the Cleveland Clinic and completed his postdoctoral training under Richard A. Flavell, a member of the U.S. National Academy of Sciences and Chair of the Department of Immunology at Yale School of Medicine. With 20 years of extensive experience in drug development, Dr. Lu has held senior R&D executive positions at companies such as Zai Lab and GlaxoSmithKline. During his tenure, he spearheaded the advancement of multiple innovative immunology drugs into proof-of-concept (POC) clinical stages and holds numerous research patents.

Another key figure in the establishment and strategic development of Mediphage is Dr. Shen Wenyan, a luminary in the global antibody field. He also serves as a member of Mediphage’s Board of Directors and Chairman of its Scientific Advisory Committee. Dr. Shen is Senior Vice President and Head of Biological Research & Development and Pharmaceuticals at NGM Biopharmaceuticals in the United States. He previously served as Global Vice President at Teva Pharmaceutical Industries Ltd. in Israel and was the inventor of Amgen’s PCSK9 inhibitor. He is one of the few scientists worldwide who have successfully translated antibody discoveries from initial invention to commercial market launch.

In addition to its strong founding team, Kewang’s Scientific Advisory Board comprises a powerhouse of world-class tumor immunology experts and renowned professors: Arlene Sharpe and Vijay Kuchroo from Harvard University, Phillip Greenberg from the University of Washington, and Thomas Gajewski from the University of Chicago. These world-renowned scientists have also founded multiple successful tumor immunotherapy companies.

Ji Xiaohui, CEO of Cosmo Pharmaceuticals, stated, “We extend our sincere gratitude to Lilly Asia Ventures, Hillhouse Capital, and CDH Investments for their endorsement and support on our journey of innovative drug development. We deeply appreciate the distinct strengths of these three premier investment institutions: their extensive experience and networks in the pharmaceutical sector, their financial resources and capabilities to influence global enterprises, and their unique market insights and strategic perspectives in China’s development.”

The rising incidence and mortality rates of cancer are also driving innovation in anti-cancer treatment technologies in China. Beyond surgery, cancer treatment has undergone three revolutions: the first was chemotherapy and radiotherapy drugs, the second was targeted therapies, and the third was immunotherapy.

Compared with other treatment modalities, immunotherapy demonstrates remarkable efficacy for its indications, with minimal toxic side effects. It helps prevent tumor recurrence and metastasis and shows significant benefits for patients with advanced-stage cancer, thereby driving rapid market growth. The global immuno-oncology market size is projected to increase from $61.9 billion in 2016 to $119.39 billion in 2021, representing a compound annual growth rate (CAGR) of 14.0%. Supported by national policies, the number of companies engaged in the research and development of cancer immunotherapies in China has been steadily rising, growing from just 22 firms in 2008 to 90 in 2016. By 2021, the Chinese market is expected to surpass RMB 25 billion. The substantial revenue potential of this sector has prompted many industry giants that had previously exited the oncology space to make a strong comeback.

While a large number of companies have flocked to develop therapies in the field of adaptive immunity, Kewang Pharma has long established a focused and systematic layout around innate immunity, directly targeting “cold tumors” and aiming at patients who are non-responsive to existing tumor immunotherapies or experience relapse. Leveraging its independently developed biomarkers, the company provides a comprehensive treatment solution featuring advanced and breakthrough combination therapies of “innate immunity + adaptive immunity.”

The “in-house R&D + product in-licensing” dual-drive model leverages CRO resources and international collaborations to demonstrate high R&D efficiency: advancing a world-first bispecific antibody into clinical trials within one year, in-licensing four blockbuster drugs, preparing to submit the clinical trial application for another monoclonal antibody, and maintaining a pipeline of 12 independently developed products comprehensively covering key areas of tumor immunology.

Of the 12 products in our pipeline, 30% are drugs targeting completely novel mechanisms, while 70% are differentiated agents based on existing targets. Asymchem’s robust R&D capabilities have laid a solid foundation for achieving combination therapies that harness both innate and adaptive immunity, thereby driving the company’s rapid growth in the field of cancer immunotherapy.

Lu Hongtao, Co-founder and Chief Scientific Officer, stated that Ascentage Pharma will further expand its strategic footprint and deepen its commitments. While in-licensing unique pipelines with novel mechanisms of action, the company will leverage its core strengths to pioneer revolutionary innovative therapies targeting innate immunity, aiming to effectively address the substantial unmet needs in oncology treatment.

When outlining KeWang’s future development plans, Dr. Ji Xiaohui projected that the company would submit Investigational New Drug (IND) applications for one to two innovative products annually: “Continuously launching high-quality products into clinical stages will provide a steady stream of momentum for the company’s growth.”