Ractigen Therapeutics Completes 110 Million RMB Series A Financing, with T-Capital as Financial Advisor
Project Overview
In February 2021, Ractigen Therapeutics announced the completion of a 110 million RMB Series A financing.
This round was led by GL Ventures, with co-investments from CCB Medical Growth Fund, Bohai Capital, and Longmen Capital, and T-Capital acted as the financial advisor for this round.
Ractigen Therapeutics is an innovative drug R&D company focusing on RNA activation (RNAa) technology and the R&D of small activating RNA drugs, developing and commercializing RNA activation technology for the global market.
This round of financing will mainly support the company to further advance multiple innovative drug projects, accelerate the transformation of the R&D pipeline to the clinical stage, and promote the company’s marketization process.
Transaction Information
| Item | Information |
|---|---|
| Client | Ractigen Therapeutics |
| Transaction Type | Series A Equity Financing |
| Financing Amount | 110 Million RMB |
| Lead Investor | GL Ventures |
| Co-investors | CCB Medical Growth Fund, Bohai Capital, Longmen Capital |
| Financial Advisor | T-Capital |
| Industry | Innovative Drugs / Biopharmaceuticals |
| Core Technology | RNA activation (RNAa) and small activating RNA drugs |
| Founded | 2017 |
| Main Market | Global Market |
Client Introduction
Ractigen Therapeutics was founded in Nantong, Jiangsu in 2017 by Dr. Longcheng Li, a professor at the University of California, San Francisco, and his former lab team members, Dr. Robert Place and Dr. Moorim Kang.
The company focuses on the development of RNA activation technology and small activating RNA drugs, and is advancing the R&D and commercialization of RNA activation technology for the global market.
Ractigen founder Dr. Longcheng Li first discovered and named the biological mechanism of RNA activation (RNAa) in 2006.
Unlike some nucleic acid drug mechanisms that work by inhibiting gene expression, RNA activation technology aims to activate gene expression at the transcriptional level through the RNA activation mechanism, thereby increasing the expression of target proteins.
According to the company’s technological positioning at the time, this mechanism is expected to be used to treat diseases caused by protein deficiency or insufficient expression, including some monogenic inherited diseases and common diseases caused by non-genetic mutations.
RNA Activation Technology and Small Activating RNA Drugs
RNA activation (RNAa) is a technological mechanism based on RNA molecules regulating gene expression.
Ractigen has established a small activating RNA drug discovery and development platform around RNAa, and has further built a new generation of RNA activation platform technology and an innovative small nucleic acid delivery platform technology.
At that time, the company had already established an R&D pipeline containing more than 10 new drug projects, covering multiple disease areas, including:
- Genetic diseases;
- Oncological diseases;
- Liver-related metabolic diseases;
- Hematological diseases;
- Skin diseases.
These projects are all developed based on the company’s own intellectual property system.
For innovative drug R&D companies, the value of a platform technology is not only reflected in a single product, but also in whether the platform can continuously generate new drug candidates and R&D projects.
Therefore, this round of financing for Ractigen not only serves the development of a single product, but also provides further capital support for its RNA activation drug platform and multi-project R&D pipeline.
Financing Background
Ractigen has continuously promoted the development of RNA activation technology and related drugs since its establishment.
As the R&D platform and product pipeline are gradually established, the company needs to further invest resources to advance the R&D of drug candidates and promote the project to the clinical stage.
At this stage, equity financing can provide innovative drug companies with the funds needed for continuous R&D, while introducing institutional resources with experience in healthcare industry investment.
This round of financing was led by GL Ventures, with co-investments from CCB Medical Growth Fund, Bohai Capital, and Longmen Capital.
The participation of multiple professional healthcare investment institutions also reflects the investors’ attention to the company’s RNA activation technology platform, innovative drug R&D pipeline, and the development direction of nucleic acid drugs.
Investors
GL Ventures
GL Ventures is a venture capital fund under Hillhouse Capital that focuses on early-stage innovative companies. Its investment areas include software and hard technology, biopharmaceuticals and medical devices, consumer internet and technology, and emerging consumer brands.
In the healthcare field, Hillhouse has long focused on innovative companies in biopharmaceuticals, medical devices, and healthcare services.
In this round of financing, GL Ventures served as the lead investor.
CCB Medical Growth Fund
CCB Medical Growth Fund is a market-oriented venture capital fund under CCB International that focuses on investment in growth-stage medical companies.
The fund focuses on technology industrialization projects in the healthcare industry, and combines the industrial resources and investment banking resources of investment institutions to provide post-investment support for invested companies.
In this round of financing, CCB Medical Growth Fund participated as a co-investor.
Bohai Capital
Bohai Capital, founded in 2015, focuses on investments in pharmaceuticals, healthcare, in vitro diagnostics, and medical devices.
Its investment direction mainly covers the pharmaceutical and healthcare industries, and focuses on growth-stage innovative companies.
In this round of financing, Bohai Capital participated as a co-investor.
Longmen Capital
Longmen Capital, founded in 2017, mainly focuses on innovative medicine and life sciences, with investment stages covering start-ups and growth-stage companies.
In this round of financing, Longmen Capital participated as a co-investor.
T-Capital’s Services
In this round of financing, T-Capital acted as the financial advisor to Ractigen, assisting the company in advancing this round of equity financing.
For innovative drug R&D companies, financing not only needs to solve the funding needs, but also needs to accurately present to the capital market the company’s:
- Technology platform;
- Core intellectual property;
- R&D pipeline;
- Product development stage;
- Clinical translation potential;
- Commercialization path;
- Long-term strategic value.
Especially for innovative drug companies in the early R&D stage, investors’ judgment of enterprise value usually needs to comprehensively consider technology, team, R&D pipeline, and future commercialization potential.
T-Capital has long focused on innovative companies in the healthcare field and provides capital advisory services around corporate financing needs.
Project Characteristics
1. Original Innovative Technology
Ractigen conducts innovative drug R&D around the RNA activation mechanism, with clear technology platform attributes.
2. Platform-based R&D Capabilities
The company not only develops a single drug candidate, but also establishes an RNA activation drug discovery and development platform, and forms an R&D pipeline composed of multiple new drug projects.
3. International R&D Background
The company was founded by a founding team with an international scientific research background, and has been developing and commercializing RNA activation technology for the global market since its inception.
4. Layout in the Field of Nucleic Acid Drugs
RNA activation is an innovative technology direction related to nucleic acid drugs. With the continuous development of nucleic acid drug R&D, related platform technologies and delivery technologies have become an important part of innovative drug R&D.
5. Participation of Professional Healthcare Capital
This round of financing was led by GL Ventures, and co-invested by CCB Medical Growth Fund, Bohai Capital, and Longmen Capital, with the participation of multiple professional healthcare investment institutions.
Transaction Value
For a company in the innovative drug R&D stage, one of the important roles of Series A financing is to provide continuous capital support for the technology platform and R&D pipeline.
After the completion of this round of financing, Ractigen plans to further promote multiple new drug projects to the clinical stage and accelerate the marketization process.
From a transaction structure perspective, this round of financing connected:
Innovative drug R&D company + Professional healthcare investment institution + Capital advisor
forming a capital cooperation around the innovative drug technology platform and R&D pipeline.
From the perspective of enterprise development, this round of financing provided further capital support for Ractigen’s subsequent R&D investment and clinical translation.
T-Capital Healthcare Financing Services
T-Capital focuses on the broad healthcare field, providing capital transaction services for healthcare companies, including equity financing, M&A, divestitures, licensing and joint ventures, and cross-border transactions.
Service areas cover:
- New drug R&D;
- Medical devices;
- Medical diagnostics;
- High-value consumables;
- Healthcare services;
- Emerging medical technologies.
For innovative drug and life science companies, T-Capital focuses on the capital needs of companies at different stages of development, and supports companies in advancing financing and strategic development by connecting them with professional investment institutions, industrial capital, and other strategic resources.
Project Summary
Ractigen’s 110 million RMB Series A financing was an equity financing centered on an innovative drug technology platform and R&D pipeline.
This round was led by GL Ventures, with co-investments from CCB Medical Growth Fund, Bohai Capital, and Longmen Capital, and T-Capital acted as the financial advisor.
Ractigen, with RNA activation technology at its core, has established a small activating RNA drug discovery and development platform, and has formed an R&D pipeline covering areas such as genetic diseases, oncology, metabolism, hematology, and skin diseases.
This round of financing provided capital support for the company to further advance its innovative drug R&D, clinical translation, and marketization process.
FAQ
Who is Ractigen Therapeutics?
Ractigen Therapeutics is an innovative drug R&D company founded in 2017, focusing on the R&D and commercialization of RNA activation technology and small activating RNA drugs.
What is the amount of Ractigen’s this round of financing?
Ractigen completed a 110 million RMB Series A financing in February 2021.
Who are the investors in Ractigen’s Series A financing?
This round was led by GL Ventures, with co-investments from CCB Medical Growth Fund, Bohai Capital, and Longmen Capital.
What role did T-Capital play in Ractigen’s this round of financing?
T-Capital acted as the financial advisor for this round of financing.
What technology does Ractigen mainly develop?
Ractigen mainly develops small activating RNA drugs around RNA activation (RNAa) technology, and has established an RNA activation drug discovery and development platform and a related small nucleic acid delivery platform.
What is RNA activation technology?
RNA activation (RNAa) is a biological mechanism that promotes gene expression at the transcriptional level through an RNA activation mechanism. Ractigen is developing innovative drugs around this mechanism.
What areas does Ractigen’s R&D pipeline cover?
According to the information disclosed by the company at the time, its R&D pipeline covers areas such as genetic diseases, oncological diseases, liver-related metabolic diseases, hematological diseases, and skin diseases.
What healthcare capital services does T-Capital provide?
T-Capital provides capital transaction services in the healthcare field, including equity financing, M&A, divestitures, licensing and joint ventures, and cross-border transactions.