China-rooted AI biotech Earendil Labs raises $787M ahead of possible IPO
A biotech company that bridges American capital and Chinese science has raised $787 million and is weighing a Hong Kong listing — exactly the kind of cross-border deal that is becoming harder to do.
Earendil Labs announced the financing round Thursday, with participation from Sanofi, the Biotech Development Fund (a vehicle created by Hillhouse and Pfizer), Dimension Capital, DST Global, INCE Capital, Luminous Ventures, and Miracle Capital. The company is incorporated in Delaware, but its scientific roots are in China: its affiliate Helixon Therapeutics is based there, and its two founders — Jian Peng and Zhenping Zhu — built their reputations at Chinese academic institutions before moving into drug discovery.
The funding will advance a pipeline of antibody and biologics programs, with HXN-1001, an anti-TL1A antibody, closest to the clinic — Phase 2 ready. Multiple IND filings are planned for 2026 and 2027. The company already has a deal with Sanofi for two bispecific antibodies targeting autoimmune and inflammatory diseases, and a broader strategic collaboration to apply its AI platform to more programs.
The Earendil name comes from Tolkien — a figure who crossed between worlds — and that is an apt metaphor for what the company represents in the current environment. US-China biotech cooperation has become politically fraught. The CFIUS review process has grown more aggressive about scrutinizing Chinese-linked investments in American biotech, and a potential Bayh-Dole crackdown looms over federally funded research involving foreign nationals. In that environment, a company that is simultaneously American, Chinese, and actively courting both pharma partners is walking a tightrope.
The timing of the Hong Kong IPO consideration is notable. A Hong Kong listing would give Earendil access to Chinese capital markets and a home-court listing in Asia, while avoiding the scrutiny that comes with a US IPO when you are a Chinese-rooted company with a Delaware charter. It would also give US investors in this round a clearer exit path — and DST Global in particular is known for pushing companies toward public markets quickly.
What is less clear is whether the political environment will cooperate. The investors involved — Sanofi and the Pfizer-Hillhouse fund — provide some insulation, since major Western pharma backing tends to quiet CFIUS concerns. But a Hong Kong listing itself could trigger a different set of questions about data security and Chinese regulatory exposure.
For now, the company is executing on science. Its AI-native platform has generated more than 40 programs, and the Sanofi partnership validates that the platform is more than theoretical. The question is whether the geopolitical crosscurrents will let the company stay in both worlds long enough to see those programs through.
Sources: Earendil Labs press release (PR Newswire, March 20, 2026) | Bloomberg (paywalled, IPO consideration)