With $6M Investment, Histogen Aims to Grow Hair Business in China

Histogen, a San Diego-based regenerative medicine company with technology for growing skin cells and related products, said it has raised $6 million from an affiliate of Huapont Life Sciences, a healthcare products company based in Chongqing, China.

The $6 million anchors Histogen’s plans to raise as much as $18 million in a Series D financing round, according to Histogen spokeswoman Eileen Brandt. She described the initial funding from Huapont as a strategic investment, as Histogen plans to work with the Chinese pharma conglomerate to make and distribute its lead product in China.

Histogen also plans to use the funding to begin preparations for an initial public stock offering, according to a statement. Including the $6 million from Huapont affiliate Pineworld Capital, Histogen has raised a total of roughly $33 million since the company was founded in 2007.

Histogen’s lead product, known as Hair Stimulating Complex (HSC), is an injectable liquid that combines cultured skin cells with cell growth factors, special proteins, and other cell-secreted molecules. The company uses a so-called “bioreactor” to grow skin cells, growth factors, and other related compounds under simulated embryonic conditions.

Histogen claims that HSC triggers stem cells in the scalp to form hair.

Histogen HSC Hair Growth study
Histogen says image shows hair growth in a male subject after receiving 20 injections of 0.1cc HSC in thinning areas, with a repeat dose at 6 weeks. The study has not been published in a peer-reviewed journal, but Histogen CEO Gail Naughton has presented them at the World Congress for Hair Research and the 2016 Stem Cell Summit.

Histogen said it plans to negotiate a license and supply agreement for the development and commercialization of HSC in China. As part of the funding deal, Huapont’s Hayden Zhang will join Histogen’s board of directors.

Huapont Life Sciences’ pharmaceutical business includes dermatology products, cardiovascular products, anti-tuberculosis agents, autoimmune-related products, and oncology-related products. The Chinese company has about 7,100 employees, and generates annual revenue equivalent to roughly $1.1 billion.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.