Virogin Biotech, a Vancouver, Canada-based developer of next-generation oncolytic virus (OV) therapeutics, has raised over $120 million in a Series D2 round of financing as the company looks to build its global R&D centre in China’s Shanghai city.
Already backed by a group of largely China-based firms, Virogin again roped in Chinese investors in the Series D2 round. The transaction was led by the Chinese insurer China Life’s healthcare industry investment fund, China Life Healthcare Fund.
Other investors include the Chinese government-guided venture capital (VC) group Shenzhen Capital Group, investment bank China Securities, and GF Qianhe Investment. Its existing shareholders Panlin Capital and Linden Asset Group (LAG) re-upped in the new round.
BMD Capital, which primarily provides financial services in China’s healthcare sector, served as the exclusive financial advisor to the deal.
Established in 2015 by Chris Huang and William Jia, Virogin is engaged in the fundamental research, translational, and clinical development of OV therapies, which use a virus that preferentially infects and kills cancer cells.
In a statement on Friday, Virogin’s co-founder and CEO Huang said that part of the new proceeds will be used to finance the construction of Virogin’s global R&D and production centre in Nanxiang, a town in northwestern Shanghai. Its construction is expected to start soon, with a target to complete and put into use next year.
The new financing will also fund the clinical development of Virogin’s existing immunotherapies and OV therapies, continuous investment in the mRNA technological platform, R&D of the new product pipeline, and potential strategic cooperation.
The Series D2 round has brought the firm’s total capital raised in the past year to $262 million.
In May, Virogin secured $80 million in a Series D1 round led by CCT Fund, a Chinese state-owned fund fully known as China Structural Reform Fund. The earlier deal followed the completion of its $62-million Series C round jointly led by China’s CMG-SDIC Capital and asset manager CDH Investments in September 2020.