MGI Surpasses Illumina for the First Time in National Blood mNGS Proficiency Testing, According to NHC Report

Figure 1. Distribution of Laboratory Results

(Source: Report on the Results of the Pre-research Activity for Inter-laboratory Quality Evaluation of High-throughput Sequencing of cfDNA Metagenomics in Blood Microbiology Nationwide)

As shown in Figure 1, based on the scoring method, the performance distribution of the 130 laboratories is as follows: 52 laboratories scored 100 points, 50 laboratories scored between 90 and 99 points (including 90 points), and 28 laboratories scored below 90 points. According to the standard that a score of ≥90 is considered qualified, the pass rate was 78.46% (102/130). Compared with the External Quality Assessment (EQA) for metagenomic sequencing of lower respiratory tract infections conducted in 2020 and 2022 (with pass rates of 44.4% in 2020 and 41.8% in 2022),The overall pathogen detection capability of participating organizations in this external quality assessment has significantly improved. The report summary mentions that the proportion of laboratories using MGI's sequencing platform has, for the first time, surpassed those using Illumina's sequencing platform, ranking at the top among sequencing platforms.

(Source: Report on the Results of the Pre-research Activity for Inter-laboratory Quality Evaluation of High-throughput Sequencing of cfDNA Metagenomics in Blood Microbiology Across China)

(Source: Report on the Results of the Pre-research Activity for Inter-laboratory Quality Evaluation of High-throughput Sequencing of cfDNA Metagenomics in Blood Microbiology Nationwide)

According to data from灼识咨询 (CIC), MGI's market share of newly sold gene sequencing equipment in China has steadily increased in recent years. From 2020 to 2022, MGI's market share for gene sequencing equipment was 12.6%, 31.1%, and 39.0%, respectively. Particularly in 2022, MGI’s market share of newly added gene sequencing equipment in China surpassed that of its competitor Illumina, which held 37.3%, placing MGI at the top of the industry.

A comparison of Illumina and MGI's revenue in major global regional markets from Q1 to Q3 of 2023 shows that Illumina mainly focused on the European and American markets, where revenue in the Americas and Europe remained flat year-over-year for Q1 to Q3.Meanwhile, the Greater China region and AMEA (Asia-Pacific, Middle East, and Africa) saw a nearly 20% year-on-year drop.；MGI Achieves Significant Growth Across Four Major Global Regions, with Sequencing Instrument Business Revenue Increasing by 31.47% Year-over-YearMainland China and Hong Kong, Macao and Taiwan regions increased by 21.19%, a 34.12% increase in the Asia-Pacific region, a 68.76% increase in the Europe-Africa region, and an 85.83% increase in the Americas region.

Currently, with the continuous decline in the cost of gene sequencing, its downstream application scenarios are constantly expanding. Supported by national policies, the performance of gene sequencing equipment in China is continuously improving. The trend of domestic substitution has become evident, and the usage ratio between imported platforms and domestically produced platforms will further balance. In this report, the proportion of laboratories using MGI's sequencing platform exceeded those using Illumina's sequencing platform for the first time, confirming this point.

At the same time, with the gradual advancement of product localization in China, domestic sequencing instrument manufacturers such as MGI have achieved localization of some high-value raw materials in sequencing instruments and sequencing reagents, already possessing a certain cost advantage. The continuously expanding downstream application scenarios will also provide space for the sustained rapid growth of China's sequencing instrument manufacturers.