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36 Krypton learned that the biotechnology company “Zhenge Bio” announced the completion of US$70 million in Series B financing. Qiming Venture Capital and IDG Capital jointly led the investment, with CMB International, Gimpo Investment, Guoke Jiahe, and Hangzhou Fulin Investment Co-investment; Series A shareholders LYFE Capital (Jifeng), Guofang Capital and Junxin Capital continued to support. The accumulated financing amount reached 125 million U.S. dollars.
In the biotechnology industry, the subdivision track that Zhenge Bio focuses on is the macromolecular biopharmaceutical CDMO and mammalian cell culture media.
CDMO is a customized R&D and production of pharmaceutical contracts. The number and size of customers are key indicators to measure the results of such enterprises. At present, Zhenge Biology has served more than 80 customers and completed more than 100 projects, including multiple clinical stage production services and a large number of complete IND declarations and other technical services. The types of drugs cover monoclonal antibodies, bispecific antibodies, and antibody pairs. Co-drugs (ADC), fusion proteins, vaccines, etc.
Pharmaceutical outsourcing is often regarded as the “seller” of innovative drugs. With the rapid development of the domestic innovative drug market, the pharmaceutical outsourcing track has also maintained a surge, and there is a large amount of unsatisfied market demand at home and abroad. In the wave of outbreaks in recent years, companies such as WuXi AppTec and Kang Long Chemical have entered the secondary market.
According to data from Frost & Sullivan, the scale of China’s pharmaceutical contract outsourcing R&D market has increased from US$2.1 billion in 2014 to US$5.5 billion in 2018, and is expected to increase to US$19.1 billion by 2023, with a compound annual growth rate from 2018 to 2023. The rate is 28.3%. The penetration rate of outsourcing services increased from 26.2% in 2014 to 32.3% in 2018, and is expected to increase to 46.7% in 2023. Other data show that the global biomedicine CDMO market has reached tens of billions of dollars.
In addition to CDMO services for macromolecules, Zhenge Biotech also integrates cell culture platform, nutrient/metabolite analysis platform, recombinant protein analysis platform, dry powder medium pilot production platform, and custom-developed basic medium and feed medium for customers , And perfusion medium formula, help increase protein expression and improve antibody quality; and provide GMP large-scale commercial production of dry powder medium. The company also provides various instrument analysis services including the first AUC (Analytical Ultra-Centrifugation) in the domestic industry.
This round of funds is used for the construction of a commercial production base in the Lingang New Area, which contains a number of GMP standard 2000L, 5000L and 500L perfusion commercial raw liquid production lines and finished product filling lines, covering an area of 45.8 acres.
In terms of team background, the core team of Zhenge Biotechnology has experience in cell line development, process development and characterization research, and clinical sample CMO services. It has developed the first domestic PD-1 antibody production process with high yield and low price. ; The Avastin biosimilar developed by a Chinese company created the record of the first non-issued supplementary application for a Chinese company’s Biosimilar, which was approved by the US FDA for Phase I and III clinical trials. The founder Chen Jianxin has more than 30 years of R&D and production experience in cell culture technology. He has worked in many multinational companies and has led the team to create an industry record of 14.5g/L of animal cell flow-added culture for antibody production.
Global CDMO representative company (picture quoted from China Industry Information Network)