Xingmou Biotech Completes Nearly 100 Million RMB Pre-A Round Financing | T-Capital Acts as Financing Advisor
In April 2022, Hefei Xingmou Biotechnology Co., Ltd. (hereinafter referred to as “Xingmou Biotech”) completed a Pre-A round financing of nearly 100 million RMB. CAS-Venture led the investment, with co-investors including CSC-STAR and Isildin. T-Capital acted as the financing advisor for this round and will continue to serve as Xingmou Biotech’s advisor for subsequent financing.
The proceeds from this round will be primarily used for:
- Advancing the IIT clinical trial of the wAMD pipeline;
- Promoting related IND filings;
- Developing new pipelines;
- Attracting high-end talent.
This financing provides financial support for Xingmou Biotech to further advance the R&D and clinical translation of its ophthalmic gene therapy products, and also reflects the attention of professional investment institutions to innovative ophthalmic gene therapy technology and its industrialization potential.
Project Overview
| Item | Information |
|---|---|
| Company | Hefei Xingmou Biotechnology Co., Ltd. |
| Financing Round | Pre-A Round |
| Financing Amount | Nearly 100 Million RMB |
| Lead Investor | CAS-Venture |
| Co-investors | CSC-STAR, Isildin, etc. |
| Financing Advisor | T-Capital |
| Core Field | Ophthalmic Gene Therapy |
| Key Pipeline | wAMD |
| Use of Proceeds | IIT clinical trial, IND filing, new pipeline development, high-end talent acquisition |
| Transaction Date | April 2022 |
Xingmou Biotech: Focusing on Ophthalmic Gene Therapy Innovation
Xingmou Biotech is located in Hefei, Anhui Province, and is an enterprise incubated by the Institute of Advanced Technology, University of Science and Technology of China.
The company focuses on the development of gene therapy drugs for ophthalmic diseases and gene editing technology R&D and services, and is committed to developing gene therapy drugs for ophthalmic diseases.
Xingmou Biotech focuses on ophthalmic diseases including wet age-related macular degeneration (wAMD) and develops products around gene therapy technology.
According to the information disclosed by the company at the time of this financing, one of its R&D priorities is to advance the clinical research and IND filing of the wAMD pipeline.
wAMD: An Important Application Direction for Ophthalmic Gene Therapy
Wet age-related macular degeneration (wAMD) is a key ophthalmic disease area for Xingmou Biotech.
Dr. Cai Yuan, the founder and CEO of the company, stated in the information related to this round of financing that Xingmou Biotech will focus its first products on the wet macular degeneration track and continue to advance the R&D of gene therapy products.
The company disclosed at the time that its related products showed good R&D results in in vivo and in vitro efficacy studies, and explored intravitreal injection through its own new capsid.
After this round of financing, the company plans to further advance in-hospital clinical research and IND filings, while accelerating the R&D of subsequent product pipelines.
This Round of Financing Will Support Clinical Development and Product Pipeline Construction
According to the information disclosed by Xingmou Biotech, the proceeds from this round of financing will be mainly used for four purposes.
1. Advancing the IIT Clinical Trial of the wAMD Pipeline
The company plans to use the proceeds from this round to support the IIT clinical trial of the wAMD pipeline.
IIT clinical research can help companies further accumulate clinical research data and provide a basis for subsequent product development.
2. Promoting IND Filings
The financing will further support the IND filing work for related products.
For innovative drug companies, moving from the R&D stage to the clinical development stage requires continuous investment in R&D, registration, and clinical resources.
3. Developing New Product Pipelines
In addition to advancing the existing wAMD pipeline, Xingmou Biotech also plans to use the financing to develop new pipelines.
This means that this round of financing will not only serve a single product, but will also support the company to further expand its R&D pipeline.
4. Attracting High-end Talent
Innovative drug R&D is highly dependent on professional talent.
Xingmou Biotech plans to use this round of financing to further attract high-end talent to provide team support for subsequent R&D and clinical development.
Investment Institutions Pay Attention to Ophthalmic Gene Therapy Technology
This round of financing received participation from institutions such as CAS-Venture, CSC-STAR, and Isildin.
Yin Lei, Managing Director of CAS-Venture, stated in the financing-related information that Xingmou Biotech focuses on ophthalmic degenerative diseases such as macular degeneration and is committed to providing gene therapy solutions. CAS-Venture also stated that it will continue to support Xingmou Biotech in advancing the development of ophthalmic gene therapy products.
Dr. Tao Yuequn, Chairman of Ocumension Therapeutics, also said that gene therapy has application prospects in the ophthalmic field and believes that Xingmou Biotech has made R&D breakthroughs in the direction of gene therapy for wet macular degeneration.
These investors’ views reflect an important feature behind this round of financing:
Capital is not only concerned with the company’s current products, but also with the development potential of the ophthalmic gene therapy technology platform and future product pipelines.
T-Capital Acts as Financing Advisor for This Round
In this round of financing, T-Capital acted as the financing advisor for Xingmou Biotech and will continue to serve as the company’s advisor for subsequent financing.
T-Capital has long focused on capital transaction services in the healthcare field, providing professional advisory support for healthcare companies at different stages of development.
For innovative drug and biopharmaceutical companies, financing is not just about finding funds.
Companies usually also need to solve:
- How to sort out the value of the company and its products;
- How to determine the financing strategy;
- How to find matching investment institutions;
- How to establish effective communication with investors;
- How to prepare financing materials;
- How to advance investor due diligence;
- How to conduct transaction negotiations;
- How to complete the financing closing;
- How to plan for the next stage of financing in advance.
The role of a professional financing advisor is to help companies systematically sort out their technical value, product value, commercial potential, and capital needs, and to connect with matching capital resources.
Healthcare Companies Need a Long-Term Capital Strategy
The capital needs of innovative drug companies are usually continuous.
From early R&D to clinical development, and then to registration and commercialization, the scale of funding, type of investors, and capital strategy required at each stage may be different.
Therefore, the completion of one round of financing does not mean the end of capital planning.
For companies in the R&D and clinical development stages, it is more important to establish a long-term financing plan:
R&D Stage → Clinical Stage → Registration Stage → Commercialization Stage
Different stages correspond to different capital needs.
Xingmou Biotech’s clear use of funds for clinical research, IND filing, new pipeline development, and talent building in this round of financing also reflects the need for R&D-oriented healthcare companies to plan their capital around the future product development cycle.
Why Do Healthcare Companies Need Professional Financing Advisors?
Healthcare companies have strong technical and professional attributes.
A company having an excellent R&D team or innovative products does not mean that its value can be automatically and accurately understood by the capital market.
The financing process usually needs to answer several questions at the same time:
What clinical problem does the company solve?
Investors need to understand the disease area, clinical needs, and product value that the product targets.
What is the technological differentiation?
The company needs to clearly explain its technology route, R&D platform, and product characteristics.
What stage is the product in?
The R&D, clinical, registration, and commercialization stages correspond to different risks and capital needs.
How much money is needed for the next stage?
The financing scale needs to match the R&D plan, clinical plan, and the company’s development stage.
What milestones can be achieved after financing?
Investors usually need to know how the financing funds will be converted into R&D, clinical, or commercialization progress.
Therefore, the core of healthcare financing is not simply to “find money,” but to establish an effective connection between corporate value and capital.
T-Capital: A Boutique Investment Bank Focusing on the Healthcare Sector
T-Capital is a boutique investment bank focusing on the healthcare sector, providing healthcare companies with investment banking services such as:
- Equity Financing
- Mergers & Acquisitions
- Divestitures
- Licensing & Joint Ventures
- Cross-border Transactions
T-Capital focuses on healthcare companies with breakthroughs in technology or business models, with service areas covering:
- New Drug R&D
- Medical Devices
- Medical Diagnostics
- High-value Consumables
- Medical Services
- Emerging Technologies
and other directions.
As a bridge connecting capital with high-quality enterprises, and domestic with international resources, T-Capital is committed to finding funds, technology, industrial partners, and other development resources for healthcare companies.
If Your Company is Preparing for the Next Round of Financing
For healthcare companies that are planning their financing, T-Capital can assist in sorting out the following based on the company’s current development stage:
Financing Strategy → Corporate Value Assessment → Investor Screening → Financing Materials → Investor Communication → Due Diligence → Transaction Negotiation → Financing Closing
If your company belongs to the fields of innovative drugs, medical devices, medical diagnostics, high-value consumables, medical services, or medical technology, and is considering Pre-A, Series A, Series B, or subsequent equity financing, you are welcome to communicate with T-Capital.
We are not only concerned with this round of financing, but also with the long-term path of the company’s future capital development.
Contact T-Capital to discuss your financing needs
FAQ: Xingmou Biotech Financing Case
When did Xingmou Biotech complete its Pre-A round of financing?
Xingmou Biotech completed a Pre-A round of financing of nearly 100 million RMB in April 2022.
Which institutions invested in Xingmou Biotech’s this round of financing?
This round was led by CAS-Venture, with co-investors including CSC-STAR and Isildin.
What role did T-Capital play in Xingmou Biotech’s this round of financing?
T-Capital acted as the financing advisor for this round and will continue to serve as Xingmou Biotech’s advisor for subsequent financing.
What is Xingmou Biotech’s main business?
Xingmou Biotech, located in Hefei, Anhui Province, focuses on the development of gene therapy drugs for ophthalmic diseases and gene editing technology R&D and services.
What are the main uses of the proceeds from Xingmou Biotech’s this round of financing?
The proceeds from this round will be mainly used for the wAMD pipeline’s IIT clinical trial, IND filing, new pipeline development, and high-end talent acquisition.
What disease areas does Xingmou Biotech focus on?
The company focuses on the field of ophthalmic diseases and takes wet age-related macular degeneration (wAMD) as one of its important R&D directions.
What healthcare investment banking services does T-Capital provide?
T-Capital provides services such as equity financing, mergers and acquisitions, divestitures, licensing and joint ventures, and cross-border transactions, focusing on serving companies in the healthcare sector.
Which companies are suitable for discussing financing with T-Capital?
Companies in the fields of innovative drugs, medical devices, medical diagnostics, high-value consumables, medical services, and emerging medical technologies that are preparing for equity financing, strategic financing, or subsequent capital operations can communicate with T-Capital.