Seraxis, a U.S. company in which Medytox has a 25-percent equity stake, has successfully closed $40 million Series C funding 

The private financing round was led by Eli Lilly, with participation from Frazier Healthcare Partners, Polaris Ventures, JDRF T1D Fund, and other investors, according to Medytox.

Seraxis will spend the investment to complete the preclinical study of SR-01, the company’s cell therapy for insulin-dependent diabetes, and begin clinical trials. SR-01 is a pluripotent stem cell-derived therapy for treating type-1 diabetes by transplanting cells made similar to human insulin-secreting cells.

“With the continued support of our investors, we believe SR-01 has the potential to replace existing drugs,” Seraxis CEO William Rust said.

Medytox acquired 1.1 million shares of Seraxis in 2015 to secure a new growth engine and introduce external technology. It also has the right to trade an additional 1.1 million shares at the initial price in the future.

“We will continue to collaborate with Seraxis to launch SR-01 and list on Nasdaq successfully,” Medytox said,

Medytox said it has been discovering and investing in domestic and overseas bio-ventures that develop differentiated products.

Another such case is LifeSprout, a U.S. startup developing revolutionary products for aesthetic and regenerative medicine, which secured a $28.5 million Series A funding in April 2020. Medytox is one of the two largest shareholders of LifeSprout.