Tongyi Biopharma Completes Nearly USD 100 Million Series B/B+ Financing, with T-Capital as Financial Advisor

Recently, Tongyi Biopharma announced the consecutive completion of its Series B and B+ financing rounds, with a total financing amount of nearly USD 100 million. This financing will be primarily used to advance the clinical development of the company’s Bi-specific ligand-Drug Conjugate (Bi-XDC) innovative drug pipeline.

T-Capital acted as the financial advisor for this financing.

The completion of this financing round provides Tongyi Biopharma with the financial support to further advance the clinical development of its core innovative drug pipeline and also promotes the global clinical development process of products related to its Bi-specific ligand-Drug Conjugate (Bi-XDC) technology platform.

1. Tongyi Biopharma Completes Series B and B+ Financing

According to information disclosed by Tongyi Biopharma, the company announced on May 12, 2023, the consecutive completion of its Series B and B+ financing rounds, with a financing amount of nearly USD 100 million.

Among them:

Series B+ financing was led by SDIC Investment, with co-investors including Shanghai Alliance Investment, Hefei Industry Investment, Hefei High-tech Investment, and Suzhou Industrial Park Science and Technology Innovation Fund.
Series B financing was led by Huimei Capital, with co-investors including Yuanfeng Capital, ABC International, and Yicun Capital.
Existing shareholder Tonghe Yuyuan also participated in this round of financing.

T-Capital acted as the financial advisor for this financing.

The funds from this round will be primarily used for the clinical development of the company’s core innovative drug pipeline and related R&D work.

2. Financing to Focus on Supporting Bi-XDC Innovative Drug Pipeline Development

Tongyi Biopharma is a biopharmaceutical company focused on the R&D and industrialization of Bi-specific ligand-Drug Conjugate (Bi-XDC) innovative drugs.

After the completion of this financing, the company will further advance several core R&D projects, including:

CBP-1008: Advancing the pivotal Phase II clinical trial in China.
CBP-1018: Advancing the Phase I/II clinical trials in China and the US.
CBP-1019: Advancing the Phase I clinical trial in China and the US.
CBP-8008 (C-PROTAC): Advancing the IND application in China and the US.

The entry of multiple core pipelines into the global clinical development stage is an important part of Tongyi Biopharma’s further advancement of its Bi-XDC R&D platform.

For innovative drug companies, after moving from preclinical research to clinical development, they typically need to continuously invest funds to support clinical trials, registration filings, and subsequent R&D work. Therefore, financing is of great significance for the continuous advancement of the innovative drug pipeline.

3. Focusing on Bi-specific ligand-Drug Conjugate (Bi-XDC) Innovative Technology

Tongyi Biopharma is located in the BioBAY of Suzhou Industrial Park.

Since its establishment, the company has mainly focused on the R&D and industrialization of the Bi-specific ligand-Drug Conjugate (Bi-XDC) innovative drug pipeline, and has now formed a technology platform layout including:

BEST™ Technology Platform;
C-PROTAC Technology Platform;
Chronic Disease Technology Platform.

Among them, the Bi-specific ligand-Drug Conjugate (Bi-XDC) technology is one of Tongyi Biopharma’s core R&D directions.

This technology achieves precise target recognition and drug delivery through a dual-ligand design. Tongyi Biopharma hopes to use this technological path to solve the existing druggability obstacles of some active molecules and explore new drug development methods.

4. Multiple Core Pipelines Enter Global Clinical Development Stage

According to information disclosed by the company, several of Tongyi Biopharma’s R&D pipelines have successively advanced to the global clinical trial stage.

Among them, the clinical Phase 1a/1b data of CBP-1008 was presented at international industry conferences such as World ADC London, AACR, and Novel Format Conjugates in 2022, and was selected for an oral presentation at the 2022 ASCO meeting based on its relevant efficacy and safety data.

CBP-1018 is in the clinical Phase I stage. Information disclosed by the company shows that its dose-escalation trial data is positive, with good safety and no DLT (Dose-Limiting Toxicity). At that time, the longest medication time for patients in the group had exceeded 12 months.

CBP-1019 received clinical default permission from the FDA in January 2023 and clinical permission from the Center for Drug Evaluation (CDE) of the China National Medical Products Administration in April of the same year, achieving dual filings and approvals in both China and the US.

In terms of R&D progress, Tongyi Biopharma is advancing the international clinical development of multiple pipelines and continuously expanding its product layout around disease areas such as oncology.

5. From Broad Oncology Indications to Rare Disease Exploration

Tongyi Biopharma’s R&D pipeline covers multiple potential therapeutic areas.

Information disclosed by the company shows that its pipeline in development is expanding around broad oncology indications, organ-targeted delivery, and chronic disease treatment.

In the field of oncology, in addition to focusing on broad indications such as lung cancer, ovarian cancer, breast cancer, and prostate cancer, the company is also using its dual-targeting technology to explore smaller tumor types and rare disease areas.

This R&D strategy reflects the thinking of innovative drug companies to continuously expand their product pipelines around their technology platforms.

6. T-Capital Acts as Financial Advisor for This Financing

As the financial advisor for this financing, T-Capital provided professional capital transaction services to Tongyi Biopharma based on its financing needs.

T-Capital has long focused on the broad healthcare sector, with its business covering:

Equity Financing;
M&A and Restructuring;
Corporate Divestitures and Carve-outs;
Licensing and Joint Venture Transactions;
Cross-Border Transactions;
Strategic Cooperation, etc.

In the biopharmaceutical field, T-Capital focuses on innovative drug R&D, medical devices, medical diagnostics, high-value consumables, healthcare services, digital health, and other innovative healthcare areas.

For innovative drug companies, financing is not only a fundraising process but also requires comprehensive consideration of the company’s R&D stage, core pipeline, capital needs, investor matching, and subsequent development strategy.

Therefore, the value of a professional financial advisor lies not only in connecting companies with investment institutions but also in designing financing strategies around the company’s development stage and financing goals, and assisting in the execution of the transaction.

7. Innovative Drug Financing Needs to Focus on Long-Term R&D Value

Innovative drug R&D is characterized by long development cycles, large capital investment, and uncertainty in R&D results.

Therefore, during the financing process, innovative drug companies need to clearly demonstrate to investment institutions:

What is the core technology platform;
What R&D stage is the core product pipeline in;
What are the clinical data and R&D progress;
How much funding is needed for future clinical development;
What disease areas and markets will the product target in the future;
How the company will continuously advance its R&D pipeline through financing.

For investment institutions, their judgment of an innovative drug company is not limited to a single product but requires comprehensive consideration of the technology platform, product pipeline, clinical progress, team capabilities, and future commercialization potential.

Therefore, establishing a financing strategy that matches the R&D stage for an innovative drug company is an important capital work in its long-term development.

8. T-Capital Continuously Serves the Capital Needs of Healthcare Companies

T-Capital is a boutique investment bank focused on the broad healthcare sector, providing services such as equity financing, M&A and restructuring, divestitures, licensing and joint ventures, and cross-border transactions to healthcare companies.

T-Capital focuses on healthcare companies with technological or business model innovations and continuously serves fields such as new drug R&D, medical devices, medical diagnostics, high-value consumables, healthcare services, digital health, consumer health, and emerging technologies.

By connecting capital with companies, and the domestic market with international resources, T-Capital is committed to finding capital, technology, industrial partners, and other development resources for healthcare companies, and supporting them in achieving their capital and industrial strategic goals at different stages of development.

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About T-Capital

T-Capital focuses on capital transactions and strategic consulting in the broad healthcare sector, providing services such as equity financing, M&A and restructuring, divestitures, licensing and joint ventures, and cross-border transactions to healthcare companies.

The company focuses on innovative drugs, medical devices, medical diagnostics, high-value consumables, healthcare services, digital health, and other healthcare fields, providing capital and industrial resource connection services for enterprises.