Innovo Therapeutics Secures Nearly RMB 100 Million in Pre-A Financing Led by Huajin Investment to Advance Targeted Protein Degradation Pipeline

VCBeat has learned that Innovo Therapeutics (hereinafter referred to as “Innovo Therapeutics”), an innovative pharmaceutical company focused on targeted protein degradation, officially announced today the completion of its Pre-A financing round, raising nearly RMB 100 million. The round was led by Huajin Investment, with participation from Qiandao Fund, Hainan Longmen Fund, and Zhongjince Investment, while existing shareholder Ming Bioventures increased its stake. HAOYUE CAPITAL served as the exclusive financial advisor for this financing round.

Innovo Therapeutics, which completed its angel financing round in 2022, is a pharmaceutical company dedicated to addressing unmet clinical needs by targeting innovative therapeutics through its globally leading, diversified protein degradation platform.Dr. Xie Weilin, the founder, has over 25 years of experience in drug discovery, including co-inventing the blockbuster drug celecoxib., Dr. Jie pioneered and established the protein degradation drug discovery platform at Celgene as early as 2001, including leading the development of screening and validation platforms for novel protein-degrading therapeutics.

Dr. Xie Weilin’s team at Celgene was the first to report E2 inhibitors (published in *Cell*) and E3 ubiquitin ligase inhibitors (published in *Blood*). Meanwhile, Dr. Xie’s team at Celgene also elucidated the key mechanism by which lenalidomide enhances anti-cancer immunity (published in *Blood*).Innovo Therapeutics (医诺康) brings together a top-tier team with proven experience in the R&D of novel molecular glue and PROTAC drugs., team members have led or participated in the development of multiple clinical-stage molecular glue or PROTAC drugs, including CC-94676, CC-99282, CC-90009, and CC-92480. The company has currently assembled a full-spectrum R&D talent pool with expertise in synthetic chemistry, medicinal chemistry, cell and molecular biology, DMPK, and translational medicine, to advance the global development of innovative drugs.

Innovo Therapeutics (医诺康), anchored by its innovative R&D center in San Diego, USA, and supported by its domestic base in China, achieves seamless integration between the two countries to attract top global R&D talent and accelerate the globalization of its pipeline. Since the last round of financing, Innovo Therapeutics has, within just eighteen months, strengthened its team and established an innovative, stable R&D platform with full independent intellectual property rights. Currently, advancing both molecular glues and PROTACs in parallel, the company has developed a differentiated pipeline that addresses unmet clinical needs.Next year, two programs with “First-in-class” potential will enter the IND-enabling stage, and the first Investigational New Drug (IND) application is expected to be formally submitted next year.

Over the past two decades, significant progress has been made in the development of molecular glues and PROTAC compounds. In particular, aided by Celgene’s extensive, high-quality library of molecular glue drug candidates and its robust evaluation and screening systems, several molecular glues have entered clinical trials. The success of lenalidomide, pomalidomide, and other drugs whose mechanism of action is based on targeted protein degradation (TPD) continues to demonstrate the substantial commercial value that can be derived from such revolutionary breakthroughs. On the other hand, while early molecular glues were largely discovered by chance, the accumulation and iterative advancement of innovative technologies in recent years are bringing the field of molecular glues close to a technological singularity marked by explosive growth. Innovative biotech companies are leveraging their unique molecular glue compound libraries, comprehensive and efficient platforms for biological target screening and validation, rational design of molecular glue scaffolds, and extensive medicinal chemistry expertise to drive drug discovery toward more rational and efficient approaches. Meanwhile, the therapeutic indications for molecular glues are expanding beyond hematologic malignancies to include solid tumors, inflammatory diseases, and central nervous system disorders.

Therefore, it is not surprising that the field of targeted protein degradation, as one of the most promising tracks within the small-molecule sector, has continued to gain recognition during the 2023 capital winter. We have witnessed a surge in collaborations with multinational corporations (MNCs) and financing announcements. Recently, Roche and its subsidiary Genentech separately entered into R&D collaboration agreements worth $50 million and $47 million with Monte Rosa and Orionis Biosciences, respectively, to develop molecular glue degraders targeting undruggable targets in oncology and neurodegenerative diseases. This underscores their strong interest and commitment to the molecular glue track. Furthermore, Bristol Myers Squibb’s (BMS) recent announcement of a $100 million upfront payment to acquire Orum Therapeutics’ GSPT1 antibody-drug conjugate degrader, ORM-6151, has also prompted industry reflection on the innovative development path for molecular glues.

Currently, many molecular glue companies are focusing on lenalidomide and pomalidomide derivatives. However, as the field of targeted protein degradation continues to advance into uncharted territories with novel targets and indications, teams possessing clinically relevant biological research capabilities, high-quality compound screening and optimization platforms, and proven success in targeted protein drug development will become increasingly valuable. In the future, this field is poised to yield even more significant breakthroughs.

Xie Weilin, Founder of Innovo TherapeuticsThe company stated: “Despite the current downturn and lukewarm sentiment in the capital markets this year, we have successfully completed this round of financing on schedule. We extend our gratitude to the numerous investors for their support and trust. The proceeds from this round will primarily be used to support the preclinical research of two degrader candidates with ‘First-in-Class’ potential. Backed by a comprehensive team with proven expertise in the successful development of molecular glues and PROTAC-based novel drugs, we are committed to pioneering the next generation of protein degraders globally. We appreciate the investors’ recognition of our team and their support for our development strategy. We remain steadfast in our mission to address unmet clinical needs through original innovative drugs, thereby benefiting patients worldwide, and to establish Innovo Therapeutics as a globally leading biopharmaceutical company.”

Lead Investor: Huajin InvestmentIt was stated: The core team members of Innovo Therapeutics are experts in the field of molecular glue and PROTAC drug development, possessing extensive experience in new drug R&D and leading innovative concepts. Leveraging the company’s profound understanding of the protein degradation field, Innovo Therapeutics has built a differentiated molecular glue library and clinical pipeline, focusing on unmet clinical needs with significant commercial potential. We will continue to integrate resources from all parties to fully support the rapid development of Innovo Therapeutics.

Angel Round Lead Investor and Follow-on Investor in This Round: Ming BioventuresIt was stated that molecular glues and PROTACs in the field of protein degradation differ from kinase inhibitors or protein antagonists, holding promise for addressing critical unmet needs—such as the lack of available therapies and drug resistance to existing treatments—across a wide range of indications. Since our previous round of investment, Innovo Therapeutics has made progress exceeding expectations in team building, laboratory establishment, platform development, and pipeline R&D. We are pleased that Innovo Therapeutics’ advancements have been recognized by new investors, and we are delighted to continue supporting its growth. We hope that Innovo Therapeutics will continue to leverage its team and platform strengths, advance the development of differentiated products, explore new targets and indications, and bring innovative drugs to society at an early date.

Jiang Yu, Senior Investment Director of Qiandao Fund, a co-investorStatement: The field of targeted protein degradation is developing rapidly, presenting new opportunities for small-molecule drug development. Dr. Xie Weilin, founder of Innovo Therapeutics, possesses profound industry insights, extensive experience, and strong influence in this field, while the core team has substantial practical expertise in the targeted protein degradation sector. The company’s product pipeline features differentiated competitiveness; its globally first-in-class next-generation protein degraders are built on advanced design concepts and address unmet clinical needs, holding promise to benefit patients worldwide. We are optimistic about the prospects of targeted protein degradation technology and confident in the Innovo Therapeutics team. We look forward to Innovo Therapeutics seizing development opportunities, achieving continuous breakthroughs, benefiting more patients, and creating greater social value.

Wang Haining, Founding Partner of the Co-investor, Hainan Longmen FundStatement: Undruggable targets represent a vast future reservoir for drug development and are one of the key focus areas of our fund. We are bullish on the significant value of protein degradation technology in addressing undruggable targets. The core founding team of Innovo Therapeutics hails from Celgene, making it one of the most experienced teams in this field. Both the company’s technological platform and its target portfolio demonstrate substantial leading advantages.

Hua Fengmao, Chairman of Zhongjince Investment, a co-investorShenzhen Zhongjince Investment Co., Ltd stated: Targeted protein degradation technology represents a revolutionary breakthrough in small-molecule drug discovery in recent years; however, the development of innovative protein-degrading therapeutics remains highly challenging due to various technical barriers. The screening and validation of novel molecular glues and PROTACs have always been our focal point. With Innovo Therapeutics’ world-class R&D team, its unparalleled compound library, and its advanced R&D design platform, we see immense potential in this field. Leveraging its accumulated experience and resources in the innovative drug and CXO industries, Shenzhen Zhongjince Investment Co., Ltd will continue to provide comprehensive support to Dr. Xie’s team. We eagerly anticipate that the company will consistently overcome the critical challenges and pain points associated with protein degradation technologies, emerging as a benchmark enterprise in the targeted protein degradation sector.

Li Yishi, Senior Partner at HAOYUE CAPITALStatement: We are honored to have assisted Innovo Therapeutics in completing this round of financing. Over the past six months, Innovo Therapeutics’ core team and talent pool have demonstrated rare, diversified capabilities within the industry, along with highly efficient execution. In recent years, many innovative clinical pipelines have shown efficacy in addressing various unmet medical needs, ushering in a new wave of innovation for small-molecule drug development. Since the beginning of this year, the accelerated strategic deployments by multiple major international pharmaceutical companies in this field have continuously affirmed its vibrant growth. We remain firmly optimistic about the rapid advancement of targeted protein degradation technology and believe that Innovo Therapeutics will continue to achieve breakthroughs in its future clinical explorations.