Loyal Valley leads Series B extension for China's Edigene

BioTrack Capital and Sherpa Healthcare Partners came in as new investors, while existing backers such as IDG Capital, Lilly Asia Ventures (LAV), 3H Health Investment, Huagai Capital, Sequoia Capital China, Alwin Capital, and Kunlun Capital re-upped. The proceeds will be used to scale up operations and advance the company’s product pipeline, according to a statement.

The first tranche of the Series B, worth RMB450 million, closed in October 2020 with 3H Health taking the lead. It followed a $10 million investment from IDG and LAV a year earlier.

EdiGene was founded in 2015 by Wensheng Wei, a professor at Peking University who previously led the university’s gene-editing research center. The company has over 130 staff across R&D bases in Beijing and Cambridge, Massachusetts, a manufacturing facility in Guangzhou, a clinical development office in Beijing, and a business development office in Shanghai.

The first of EdiGene’s four genome editing platforms was completed in 2017 and it began collaborating with global pharma players shortly thereafter. In 2020, it teamed up with Immunochina to develop a CAR-T cell therapy for cancer and this year won investigational new drug (IND) approval for a gene-editing hematopoietic stem cell therapy. This was the first gene-editing therapy to reach the IND approval stage in China.

CAR-T cells are genetically engineered T cells developed by extracting immune cells from a patient, modifying them, and then returning them to the host to attack tumors. Hematopoietic stem cells (HSCs) are stem cells that stimulate the development of other blood cells, including those capable of targeting cancers and immune system disorders.

In addition to ex vivo programs focused on T cells and hematopoietic stem cells, EdiGene’s is working on an in vivo therapeutic platform based on RNA editing and high-throughput genome-editing screening. These are still in the research stages.

“Gene-editing, as one of the most exciting technologies in life science, has showcased huge potential in treating or curing various diseases in recent years and may fundamentally transform the current ways of disease treatment in the future,” said Andy Lin, founding partner of Loyal Valley.

“As the leading company in China in translating gene-editing technologies into innovative therapies, EdiGene has assembled a team of world-class researchers and experienced drug developers to develop and commercialize such assets, with full scientific rigor and quality.”

Cell-based immunotherapy is one of few healthcare treatment areas in which China is seen by some as a genuine innovative force. CAR-T cell therapies have emerged as a particular area of focus. Loyal Valley has backed several local specialists, including JW Therapeutics, now listed in Hong Kong.

On a more general level, several Chinese contract research organizations (CROs) offer antibody development, gene-editing, and preclinical testing services. These include genetically modified mice for drug testing. The likes of Biocytogen and GemPharmatech have both received VC funding.

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• Topics
• Greater China
• Healthcare
• Early-stage
• China
• Loyal Valley Capital
• Sherpa Healthcare Partners
• IDG capital
• Lilly Asia Ventures
• Sequoia Capital
• Pharmaceuticals