Kelun Biotech, a subsidiary of Shenzhen-listed Kelun Pharmaceutical, has secured over 500 million yuan ($77 million) in fresh funding led by CMC-SDIC Capital, a fund co-launched by state-backed China Merchants Capital and SDIC, the lead investor announced on Thursday.
The current round also saw the participation of marquee investors including IDG Capital, Asia-focused private equity firm Hillhouse Capital, Lilly Asia Ventures, Suzhou Likang Investment and Zhuhai Liangheng Investment.
Following the investment, Kelun Pharmaceutical remains the controlling shareholder in Kelun Biotech holding a 51.70% stake.
Kelun Biotech, which was valued at 4.5 billion yuan ($696 million) before the round, plans to spin off from its parent company and go public, it said.
The company will use the proceeds for innovative drug R&D and commercialisation.
Kelun Biotech, which started operation in 2016 in Southeast China’s Sichuan province, is engaged in producing macromolecular drugs and small-molecular drugs, especially for antibody-drug conjugates.
It claims that its flagship candidate SKB264, which targets breast and lung cancers, has received clinical trial approval in China and the US at the beginning of this year.
It has over 10 drug candidates in the pipeline under clinical trials targeting cancers, hepatitis B, metabolic and autoimmune diseases.