Xgene Pharmaceutical Secures 250 Million Yuan Series D Financing to Accelerate Clinical Development & Global Commercialization of Pain and Neurology Pipeline Assets

According to VCBeat, Xgene Pharmaceutical (Shanghai) Co., Ltd. has announced the completion of its RMB 250 million Series D financing. The round is co-led by Efung Capital and GTJA Investment Group, with three other institutions including Jiaxing Yuanfan and Real Capital Global participating. WinX Capital serves as the financial advisor for this financing round.

Globally, the risks of dependence, abuse and overdose caused by opioid drugs have drawn sustained attention from all sectors of society. Meanwhile, there remains a huge unmet clinical demand for non-opioid therapeutic regimens that deliver potent analgesic effects alongside favorable safety profiles. Xgene Pharmaceutical has long focused on the R&D of innovative drugs for pain and neurological disorders. The company is committed to developing novel analgesic products that reduce or replace opioid medication, delivering safer and more effective treatment options for pain patients worldwide.

Funds raised in this round will be mainly deployed to advance the Phase III clinical trial of XG005, the company’s lead candidate, for acute pain in the United States, as well as to sustain the development and global expansion of Xgene Pharmaceutical’s core product pipeline.

Dr. Xu Jinghong, Founder and CEO of Xgene Pharmaceutical, stated: "This financing marks Xgene Pharmaceutical’s official entry into a new stage of development. The raised capital will be primarily utilized to complete the Phase III clinical trial of XG005 for acute pain in the U.S. and drive its commercialization. As the company strides toward this vital milestone, we sincerely appreciate the trust and support from our new investors in this round, as well as the unwavering long-term backing from our existing shareholders. Xgene will continue to deepen its focus on therapeutics for pain and central nervous system disorders, advance innovative drugs with differentiated clinical value to global markets, and deliver safer, more effective and optimized treatment solutions for patients suffering from pain."

Mr. Wang Kaifeng, Partner of Efung Capital, commented: "Pain and neurological disorders represent a field with massive unmet clinical needs and huge market potential, yet they also pose great challenges for novel drug R&D. Efung Capital highly recognizes Xgene Pharmaceutical’s team for its long-term dedication, robust research capabilities and remarkable phased achievements in this space. We hold firm optimism for Xgene’s distinctive drug conjugation technology platform and existing product pipeline. We believe the company will secure a pivotal position in the global non-opioid pain treatment market backed by its differentiated technological and clinical strengths."

Ms. Teng Yuhang, Managing Partner of GTJA Investment Group, said: "In recent years, remarkable progress has been made in the research and development of innovative drugs for pain treatment. However, the clinical demand for potent non-opioid analgesics remains largely unmet. Xgene Pharmaceutical has long been deeply engaged in pain therapeutics and built a diversified product layout covering acute pain, chronic pain, as well as multiple administration routes including oral and topical transdermal delivery. The company’s core pipeline has accumulated clinical data from hundreds of subjects across various pain indications, demonstrating promising efficacy and safety signals. We expect Xgene Pharmaceutical to continuously advance its product development and bring more innovative treatment options to patients worldwide."