AI-Native Biotech Specializing in Challenging Drug Targets: NUTSHELL Completes Tens of Millions of Dollars in Series C1 Financing

September 15, 2026, NUTSHELL Therapeutics, a leading AI-native biotech company leveraging “AI + Physics” to modulate protein conformations and tackle undruggable targets, announced today the completion of a Series C1 financing round totaling tens of millions of U.S. dollars. The round was led by Trustar Capital, co-led by Decheng Capital, with participation from Fortune Capital and Zhongsheng Xichuang Dingqi Fund. Das Capital served as the exclusive long-term financial advisor to the transaction.

The successful completion of this funding round demonstrates the capital market’s recognition of NUTSHELL’s dual-engine computational technology driven by “AI + Physics,” as well as the company’s capability to translate AI algorithms into high-quality new drug pipelines.

NUTSHELL is one of the industry leaders in China that first leveraged the dual-engine technology of “AI + Physics” to systematically tackle the R&D of drugs targeting undruggable targets. After more than a decade of intensive cultivation, the company has established a standardized database derived from wet-lab experiments, which is among the largest globally in the field of protein conformational regulation. Meanwhile, it has independently developed a systematic “AI + Physics” computational framework capable of capturing dynamic changes in protein conformations during simulations, uncovering potential hidden druggable sites, characterizing these sites, and driving AI-generated small molecule design.

Unlike traditional biopharmaceutical companies that focus on a single disease area or target pathway, NUTSHELL is an AI-driven biotech company. Leveraging its integrated dry-and-wet R&D platform, AlloStar™, built upon core technologies in protein conformational regulation, the company systematically addresses undruggable targets across diverse disease areas. It develops various small-molecule drugs on demand that can activate, stabilize, repair, modulate, or degrade targets, as well as promote or disrupt protein-protein interactions.

Leveraging this platform, the company has established a portfolio of nearly 20 self-developed pipelines targeting traditionally "undruggable" targets such as transcription factors, translation factors, and various receptors. These pipelines address a broad spectrum of diseases, including oncology, central nervous system disorders, autoimmune diseases, and metabolic conditions, with a continuous, systematic generation and advancement of projects possessing First-in-Class (FIC) or Best-in-Class (BIC) potential.

In terms of foundational technology, NUTSHELL has leveraged over a decade of accumulated expertise to build AlloMatrix, a globally leading database for protein conformational regulation, and independently developed AlloStar™, an AI and physics-based computing platform with proprietary intellectual property rights. Leveraging the AlloMatrix database, the company has utilized deep learning models to create APSF (Allosteric Protein Specific Forcefield), the world’s first molecular force field specifically designed for protein conformational changes. This force field effectively identifies implicit allosteric sites that are difficult for traditional force fields to capture, enabling precise characterization of protein allosteric effects.

Meanwhile, the AlloStar™ platform features a built-in AlloWaves module that integrates physical models with AI algorithms to identify and characterize hidden functional sites on proteins. The AlloLig module leverages cutting-edge generative AI models, such as Diffusion Models and Flow Models, and incorporates internally developed small-molecule generation algorithms tailored for practical application in drug pipeline development.

As a representative pipeline empowered by the AlloStar™ platform, NUTSHELL’s p53 Y220C small-molecule reactivator project leveraged the AlloWaves module to characterize allosteric sites, leading to the design of Dalretapopt (NTS071), a clinical candidate compound with picomolar-level allosteric agonist activity.

Dalretapopt is currently advancing steadily through an international, multi-center Phase I clinical trial and is poised to enter Phase II clinical development. Preliminary Phase I data indicate that NTS071 demonstrates significant efficacy at ultra-low doses while exhibiting excellent human pharmacokinetic (PK) properties, positioning it as a potential first-in-class, pan-cancer therapeutic targeting this mechanism globally. NUTSHELL is also advancing a globally leading program targeting NRF2 with covalent allosteric molecular glues, with Phase I clinical trials planned to launch simultaneously in China and the United States in Q4 2026.

NUTSHELL Team stated :“Unlike traditional biopharmaceutical companies, NUTSHELL is an AI-native biopharma company. We leverage advanced AI and physics-based computing technologies to build a drug discovery platform with proprietary core technologies, systematically tackling difficult-to-drug targets across diverse disease areas. As our algorithms continue to iterate, our platform-driven pipeline will consistently generate clinical data with global competitiveness, ultimately benefiting patients. We sincerely thank both new and existing investors for their trust and support in NUTSHELL’s vision and team. This round of financing will accelerate the iteration of our AI and physics-based computing platform and the development of our core pipeline, helping to bring high-quality, AI-enabled novel drugs to the global market.”

Zhao Lei, Partner at Trustar Capital and Head of the Trustar Growth Fund, stated: “AI is profoundly reshaping the underlying logic of drug discovery, and NUTSHELL represents a globally competitive Chinese innovative force within this paradigm shift. The company has built AlloMatrix, a leading global-scale allosteric database, and independently developed the AI computing platform AlloStar™, achieving full-chain AI-driven capabilities from allosteric site identification to molecular design. It has established a significant and robust pipeline targeting difficult-to-drug areas, yielding remarkable achievements. We will also leverage Trustar Capital’s ecosystem resources and international layout to help the company secure a prominent position in the global landscape of AI-driven pharmaceutical innovation.”

Decheng Capital stated :“The NUTSHELL team has demonstrated exceptional systematic R&D capabilities in the field of difficult-to-drug targets. Leveraging the company’s long-established expertise in allosteric drug development, NUTSHELL has built a pipeline spanning various disease areas with differentiated characteristics. Its lead candidate, NTS071, has achieved initial proof-of-concept in clinical trials in both China and the United States, showing excellent efficacy and safety profiles. We look forward to NUTSHELL accelerating its pipeline development to bring truly clinically valuable innovative therapies to global patients as soon as possible. Decheng Capital will leverage its global industrial resources to help NUTSHELL enter the international market promptly and engage in multi-level collaborative partnerships with companies within Decheng’s global industrial ecosystem.”

Dr. Wang Dakui, Managing Director of Fortune Capital, stated: “Allosteric mechanisms represent a key pathway to overcoming the bottlenecks in traditional orthosteric drug development, yet companies worldwide with genuine ‘allosteric drug development’ capabilities are exceedingly rare. NUTSHELL has been deeply engaged in the allosteric field for over a decade, building the world’s largest allosteric database and an AI-computation-driven drug discovery platform, while achieving breakthroughs on multiple targets traditionally considered ‘undruggable.’ We highly recognize the company’s scientific originality and the team’s execution capabilities. We are pleased to participate in this round of financing and look forward to seeing more of the company’s drug pipelines enter clinical trials soon, thereby benefiting patients.”

Zhongsheng Xichuang Dingqi Fund stated :“The past fluctuations of industry cycles have witnessed an abundance of concepts chasing fleeting trends. NUTSHELL, however, has chosen a more challenging and respectable path—silently building the world’s largest allosteric data center over nearly a decade. Through its ALLOSTAR™ platform, which deeply integrates AI computing with experimental science, NUTSHELL is propelling allosteric drug discovery from ‘accidental findings’ to ‘rational design.’ What we value even more is that the team has already completed critical validation from platform to pipeline: NTS071, our self-developed p53 Y220C allosteric reactivator, has entered clinical trials in the United States. This not only demonstrates the scientific feasibility of the AI-driven allosteric approach but also signifies that the reusable and scalable value of the platform is being realized. Today’s first pipeline asset is merely the starting point; the infinite target combinations enabled by the platform represent the true long-term value. We highly recognize the resilience across cycles and the steadfast belief in technological value demonstrated by the team led by Professor Zhang Jian and Dr. Shen Qiancheng. We look forward to leveraging Decheng Capital’s full-chain industrial resources to accompany NUTSHELL in deepening and extending this validated path, ensuring that China’s original AI-driven allosteric drugs benefit patients worldwide.”

Zou Lina, Project Director at Das Capital stated: “NUTSHELL has become one of the leading companies in the AIDD sector, from underlying algorithmic innovation to clinical pipeline validation. We believe that, leveraging China’s dual advantages in AI technology and clinical translation efficiency, AIDD companies will usher in a wave of robust growth over the next five years.”