Ascletis, a Hangzhou-based novel biotech focused on infectious diseases and oncology, has raised $20 million in investment funds from Goldman Sachs. The investment is close on the heels of another Ascletis funding, a $35 million round led by C-Bridge Capital, Tasly Pharma and Pavilion Capital, which was announced in September. In an exclusive interview with ChinaBio® Today, Jinzi Wu, PhD, Ascletis' Founder, President and CEO, identified the Goldman Sachs funding as a pre-IPO (or mezzanine) round. Ascletis expects to IPO late next year or in 2017, depending on market conditions and other factors, he said.

“We’re considering different exchanges, including overseas, such as NASDAQ, or exchanges in China, and we woudl prefer China” Dr. Wu declared.  He went on to explain Ascletis is considering the Growth Enterprises Market (创业板 / Chuang Ye Ban) or GEM in Shenzhen, and the Strategic Emerging Industries Board (战略新兴产业板 / Zhan Lue Xin Xing Chan Ye Ban) in Shanghai, which is expected to open next year.  GEM is generally for smaller companies while the new Strategic Board will target medium size companies.

In order to qualify for either of these boards in China, the listing company must show a history of revenue, while NASDAQ has no such requirement.

“We are very different than other [early stage pharma] companies – we have revenue,”  Dr. Wu emphasized. Although Ascletis's assets are in the clinical stage of development, the company has income from its partnerships – Dr. Wu specifically mentioned Roche, though it has partnerships for each of its four clinical stage drug candidates.

According to Dr. Wu, Ascletis already had sufficient funding in hand to bring its two lead HCV assets to market. So the new capital can be used to expand the company's pipeline in its two areas of interest, oncology and infectious disease, he said.

Ascletis' most advanced program consists of two direct acting agents that target HCV: ASC08, a second-generation HCV NS3/4A protease inhibitor, and ASC16, a NS5A inhibitor. Both are direct-acting antiviral agents. Administered together, they could offer an all-oral interferon-free treatment for HCV. And, Dr. Wu has declared, the regimen will be affordable.

In June, the company filed for Taiwan-China clinical trials of the two drugs as a  combined therapy (see story). ASC08 has already produced positive results in a Taiwan Phase II trial that enrolled patients with Genotype I HCV. Because the results were so strong, Dr. Wu told ChinaBio® Today earlier, they will help speed the approval/clinical trial process for the combined therapy.

Ascletis expects to complete the Phase III trial of ASC08 in 2016 and begin marketing the drug in 2017. If it can adhere to this schedule, it will be the first direct-acting antiviral agent in China. It expects ASC16 to follow quickly and be on the market in 2018.

In the antiviral sector, successful Phase II data is a strong indicator that the drug will be successful -- which isn't true for most other therapeutic areas, declared Dr. Wu.  “We’re quite confident we can bring these products to market,” he said.

With regard to Ascletis' newest investor, Dr. Wu hopes that Goldman Sachs’ involvement is a predictor of its future success. “Goldman Sachs is a very high standard. They have invested in one other Hanghzou company before now, Alibaba,” he pointed out.

Stephanie Hui, a Managing Director for Goldman Sachs and lead for the Ascletis investment, was also involved in the Alibaba transaction earlier in her career, further enhancing the Alibaba/Ascletis halo effect.

“We’re really excited about the validation and support from Goldman Sachs.  Now is the right time [for them] to jump in,” Dr. Wu declared.

See our other articles on Ascletis.

Disclosure: none.