VCs commit $50m to China's Medilink Therapeutics
Suzhou Medilink Therapeutics, a Chinese biotech company specializing in antibody-drug conjugates (ADCs) commonly used as targeted therapies for treating cancer, has raised $50 million in Series A funding across two tranches.
The first was led by Apricot Capital, a local healthcare investor founded in 2015 that has more than RMB3 billion ($463 million) in assets under management. The second came from Loyal Valley Capital and Qiming Venture Partners. The proceeds will go towards the development of the company’s innovative drug pipeline.
"Our team has extensive knowledge in ADC technology and project development. Our aim is to develop medicines with real benefit for patients around the world. The ADC field has experienced a series of significant breakthroughs in recent years and we believe that there is still an urgent need to develop more efficacious and safer ADC drugs,” said Tongtong Xue, founder and CEO of Medilink.
The company was established in 2020 by a team of industry veterans. Xue was formerly CEO of Kelun-Biotech, while Jiaqiang Cai, the chief scientific officer, was previously a small molecule and ADC drug R&D specialist at the likes of Shanghai Hansoh Pharmaceutical. COO Liang Xiao is another Kelun-Biotech alumnus.
ADCs are a class of biopharmaceutical drugs that kill tumor cells while sparing healthy cells. They comprise an antibody linked to an anti-cancer payload. Antibodies attach themselves to an antigen – typically proteins – that is only found in or on tumor cells. A biochemical reaction between the antibody and the antigen triggers a signal in the tumor cell, which absorbs the antibody and the anti-cancer payload. This kills the cancer.
"ADC drug development is highly complex, which requires a well-balanced approach of all components including antibody, linker, and payload. Medilink has shown their strong know-how and unique insights in every step of ADC design and development,” said Jing Qiang, a partner at Apricot, in a statement. Qiang added that Medilink as the potential to become a leading global drug conjugate technology platform.
ADCs are one of several branches of immunotherapy attracting investor interest in China. RemeGen received $100 million in funding last year to accelerate the development of RC48, the first ADC to enter clinical trials in China. It has completed phase-two trials for gastric and urothelial cancers.
Other local players are in-licensing. Everest Medicines, which went public in Hong Kong last October, has secured rights to the first US-approved ADC for breast cancer. Cstone Pharmaceuticals – another PE-backed drug developer that listed in Hong Kong last year – made an upfront payment of $10 million to Korea’s LegoChem Biosciences for global rights ex-Korea for a pre-clinical ADC drug.
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