Epigenic Therapeutics has raised a $60 million Series B financing to ramp up clinical tests of what it hopes could be a cure for chronic hepatitis B, using a version of CRISPR gene editing that silences disease-causing genes without altering the underlying genetic code.
The Shanghai-based biotech is one of at least three startups developing epigenetic editing therapies to quash the activity of stowaway genes that the hepatitis B virus (HBV) stubbornly implants in liver cells.
“The painful clinical bottleneck for treatment of hepatitis patients is the eradication of this DNA,” Epigenic co-founder and CEO Bob Zhang told
Endpoints News
in an interview.
Epigenic is already testing the experimental therapy in a Phase 1 study. The first patient was dosed in New Zealand in November 2024, Zhang said. The new funding will help the company complete a Phase 2 study, which will include trial sites in China and the US by the end of 2027, he added.
The 70-person company has not attracted much attention since it was founded in 2021, but that could start to change. Over the past year, US and European drugmakers have increasingly
turned their gaze
toward Chinese biotechs as a cheaper and faster way to fill their pipelines. Epigenic is among a
growing crop of young Chinese companies
developing cutting-edge
genetic technologies
at a pace similar, or
even quicker
, than better-funded competitors in the US.
In epigenetic editing, Epigenic appears to be near the front alongside Tune Therapeutics. Tune, based in Durham, NC, and Seattle, WA,
got clearance
to test its own HBV therapy in New Zealand in November 2024 and went on to raise a
$175 million Series B
in January, bringing its total funding to $225 million. Tune expects to share its first clinical data this year.
A third epigenetic editing company, Boston-based nChroma Bio, has raised at least $335 million
across three rounds
but has not said when it plans to begin clinical trials of its HBV therapy.
Zhang said that Epigenic has now raised $122 million total. The new round was led by Beijing-based Lapam Capital. Prior investors Qiming Venture Partners and OrbiMed participated too.
Epigenic is also running clinical tests of an epigenetic editing therapy to lower cholesterol, targeting the PCSK9 gene. Zhang said that the company has also been working in the increasingly hot space of
in vivo
CAR-T cell therapy
and plans to begin a clinical test in autoimmune disease next year. (That program doesn’t use the company’s editing technology.)
“They can advance a larger number of programs than their US counterparts because of the low-cost advantage of a China trial. That’s what we are excited about,” Kan Chen, a partner at Qiming, told Endpoints. “We are also excited about epigenetics. It’s not just one product, it’s a platform company, so it could have the potential to become a big biopharma one day.”
Like many biotech executives in China, Zhang got his start in the US, first through a biological chemistry postdoc at the University of Michigan in 1999, and then at a small biotech in San Diego, before returning to China a decade later.
The country’s drug industry was growing up, and Zhang wanted to be part of it. He was a director at Sanofi’s research site in Shanghai and a leader at two contract research organizations that both got acquired before he met two scientists at the Chinese Academy of Sciences, whose work would inspire the founding of Epigenic in September 2021.
Although other academic scientists had published papers on epigenetic editing, the technologies had yet to make a big splash at biotech startups. The apparent lack of investor interest worried Zhang at first. “We felt pretty lonely at the time,” he said. “If this is so great, why are we the only ones doing it?” he recalls asking his cofounders.
That loneliness didn’t last long. Chroma Medicine launched with $125 million that November, and Tune launched with $40 million two weeks later. Both startups were backed by a heavy-hitting team of scientific founders, including the Broad Institute’s David Liu at Chroma and UC Berkeley’s Fyodor Urnov at Tune. (Chroma later merged with Liu’s company Nvelop to form nChroma.)
Epigenic has not disclosed the names of its two scientific co-founders, and Zhang said they did not wish to be identified. The early research on which the company was based has also not been disclosed, but the preclinical work on the PCSK9 program will be published in a peer-reviewed journal soon, he said.
The company is testing the PCSK9 program in a China-based investigator-initiated trial, or IIT. IITs are an increasingly popular way to quickly assess cell or gene therapies in small studies overseen by local hospitals, rather than national drug regulators. The company has tested small and medium doses and is just beginning to test a larger dose. If the results are promising, Zhang hopes to find a pharma partner to continue developing the program in bigger studies.
According to Zhang, the company’s founders developed a version of CRISPR gene editing that could control how genes are turned on and off without changing or cutting the DNA itself.
Like other CRISPR treatments, the therapy relies on a Cas enzyme — the molecular scissors — to guide the therapy to the right part of the genome. But with an epigenetic therapy, the scissors are blunted and unable to cut the DNA. The action instead comes from two additional proteins that are tethered to Cas.
For Epigenic’s technology, one of those proteins is a DNA methyltransferase that lays down chemical markers atop the PCSK9 gene or HBV infection to silence it. The second protein helps recruit enzymes that make additional chemical modifications to cellular spools called histones, which wrap the DNA up, making it inaccessible. “The sustainable biological response relies on both,” Zhang said.
The entire epigenetic editing machine is encoded in mRNA molecules that are packaged inside the lipid nanoparticles developed by Epigenic. The approach means that therapy won’t stick around long after it’s done its job. “This is kind of a hit-and-run approach,” Zhang said. But he expects the epigenetic silencing to be durable.
A single treatment of the PCSK9 therapy in monkeys has lasted almost two years so far in the company’s experiments, Zhang said, and he hopes the HBV therapy will similarly keep the viral infection locked away for good. “We’re predicting this lasting the whole life in humans, hopefully,” he added.
Zhang said Epigenic may share more about the hepatitis B trial design and some of the early safety data from the first patients treated at a medical conference this fall. “It’s not going to be a complete story. It’s only the first cohort,” he said. “But we want to let the field know the progress. We’re not going to hide that.”