Super Sequencing Is Here! Jieda Bio Launches Revolutionary Model to Transform the Genomics Industry

Amid the surge of rapid development in the gene sequencing industry, the midstream sequencing services sector should have emerged as a key force driving industry progress; however, the reality presents a complex and grim landscape.

From the perspective of industrial structure, this sector exhibits typical characteristics of a fragmented market. Due to low technical thresholds and the absence of significant barriers to entry, a large number of enterprises have flocked into this field, concentrating on basic sequencing services and common testing items. This has resulted in highly homogeneous products and services, lacking differentiated competitive advantages. Consequently, the entire industry has fallen into disordered competition, forcing companies to engage in price wars to capture market share, thereby squeezing profit margins. Limited profits hinder companies’ ability to invest in research and development and service upgrades, leading to stagnation in industrial development. As a result, the sector fails to achieve industrial agglomeration effects and economies of scale, nor can it drive the industry toward higher levels of advancement.

Meanwhile, downstream customers have become increasingly price-sensitive regarding sequencing services, continuously driving down service prices. Midstream sequencing service providers, positioned in the middle of the industrial value chain, are unable to pass cost pressures onto upstream suppliers and struggle to shift these costs to downstream customers, resulting in severely squeezed profit margins. This predicament not only constrains the healthy development of the industry but also hinders the enhancement of corporate innovation capabilities.

However, the industry’s development is not without opportunities for turnaround. On February 14, 2025,Decoding (Shanghai) Biopharmaceutical Technology Co., Ltd. (hereinafter referred to as “Decoding DNA”) and Shanghai Xuzhenda Biotechnology Co., Ltd. (hereinafter referred to as “SEQUANTA”) have officially signed a strategic cooperation agreement to jointly establish Jieda Biotechnology (Shanghai) Co., Ltd. (hereinafter referred to as “Jieda Bio”).。This collaboration will deeply integrate the respective strengths and distinctive features of both parties in the sequencing business, jointly pioneering the industry’s first new model of super-sequencing characterized by broad coverage, large scale, and diversification. This initiative will inject fresh vitality into the industry and embark on a new journey of innovative development.

Unveiling Ceremony of Jieda Biotech

(Left: Pan Jiakui, CEO of DNACEO; Right: Dr. Sun Lele, Founder and CEO of SEQUANTA)

Image source: Jieda Biology

It must be emphasized that this strategic partnership is by no means a simple addition of business operations; rather, it represents a deep integration of both parties’ competitive advantages, which will be fully leveraged and maximized on Jieda Biology’s extensive platform.

“Currently, the midstream sequencing services industry has long been trapped in homogeneous competition. The price-centric competitive model has fallen into a quagmire of cutthroat rivalry, and this low-level ‘involution’ fails to deliver substantial value enhancement to the industry. From the perspective of industrial development trends, the competitive paradigm of the midstream sector has subtly shifted. The new competitive landscape focuses on differentiation in business models, encompassing three dimensions: turnaround time, cost control, and quality assurance,” stated Dr. Sun Lele, Founder and CEO of SEQUANTA.

Across these three dimensions, Decode DNA and SEQUANTA each possess distinct strengths. Decode DNA has pioneered a new ecosystem in the genomics industry and was the first in China to propose the “Fourth-Party Testing Service” concept, characterized by being “comprehensive, fast, high-quality, cost-effective, and stable.” Committed to helping a diverse client base—including third-party clinical laboratories, biotechnology enterprises, hospitals, universities, and research institutions—reduce costs and enhance efficiency, Decode DNA is accelerating the translation of life science research and ushering in the era of universal personal genomics, thereby empowering the rapid development of the genomics industry.

According to Pan Jiakui, CEO of Decode DNA, Jieda Bio will uphold the “fourth-party testing service” philosophy of Decode DNA after its establishment. By achieving economies of scale, it aims to improve efficiency, reduce costs, and enhance its market competitiveness, thereby fostering a virtuous industrial cycle characterized by business expansion, improved profitability, and cost reduction. This will drive the sustained development of both the company and the entire genetic testing services industry.

As a pioneer in the sequencing industry, SEQUANTA has continuously refined its flagship offering, the FlashSeq service, with the commitment to being your dedicated sequencing expert. To date, SEQUANTA FlashSeq has established 12 local laboratories across eight cities—Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, Chengdu, Shenyang, and Hefei—forming a large-scale operational sequencing service network. This enables customers to obtain high-quality data through flexible methods and at lower costs, thereby facilitating broader penetration and accessibility of sequencing applications.

Furthermore, leveraging SEQUANTA’s automation and informatization capabilities, Jieda Bio plans to develop a nationwide accessible network ticketing system designed to empower customers with the convenience of placing orders independently. “Given that it is currently difficult to achieve technological breakthroughs that are distinctly different from competitors and offer significant advantages, we are focusing our business efforts on providing practical, efficient, and flexible ordering solutions. This approach aims to meet customer needs, facilitate greater penetration and reach in sequencing application scenarios, and enhance the service experience,” said Dr. Sun Lele.

In addition to business model innovation, the newly established Jieda Bio will possess the following three significant advantages:

Significant Expansion of Operational Scale—The number of local laboratories has increased from 12 across 8 regions to 14 across 9 regions, further optimizing the overall network layout. Equipped with professional sample processing equipment and staffed by experienced technical personnel, these local laboratories can rapidly receive and perform preliminary processing on client samples. This has substantially reduced sample turnaround time and significantly improved service efficiency, laying a solid foundation for enhancing regional service quality and meeting customer needs.

Based on the current nationwide distribution of genetic sequencing service providers, most companies have established their branches in cities such as Beijing, Shanghai, and Hangzhou. Consequently, customer demand from other regions, including Guangzhou and Shenzhen, has long been plagued by slow response times and prolonged service cycles. The considerable distance from service providers’ headquarters, lengthy logistics timelines for sample transportation, and the lack of localized professional technical teams to process samples and provide technical support in a timely manner have become significant barriers to delivering extensive services. Jieda Bio’s comprehensive nationwide footprint will offer a new solution to this challenge.

The company ranks among the top in China in terms of equipment scale. Currently, Jieda Bio’s diversified sequencing platforms have a total daily sequencing capacity of up to 200 terabases (Tb), equivalent to completing whole-genome sequencing (WGS) for 2,000 individuals per day.

Image source: Jieda Biotech

In the future, Jieda Bio will focus more on providing customers with rapid, high-quality, and flexible sequencing services to meet the diverse sequencing needs of clients across various fields.

In key areas such as service system construction, technical pathway planning, and production process design, Jieda Biotech has not confined itself to the existing models of decoding DNA or SEQUANTA. Instead, it has conducted an in-depth analysis and integration of the resources, experience, and achievements of both teams, leveraging a rigorous evaluation process to carefully select the most scientific, efficient, and forward-looking solutions available.

Building on this high-caliber foundation, Jieda Bio is committed to developing a superior solution ecosystem with distinct competitive advantages. Driven by a steadfast commitment to leading industry advancement, Jieda Bio will establish a sustainable innovation mechanism, continuously refining and upgrading its solutions. This ensures that Jieda Bio maintains its leadership position amidst rapidly evolving market dynamics and technological trends, setting new benchmarks for the gene sequencing industry and related sectors.

In addition, according to Dr. Sun Lele, Jieda Bio will further innovate its business model: “By attracting independent genetic sequencing laboratories across various regions to join our network, we will continuously expand economies of scale and establish a centralized, high-efficiency, and high-quality sequencing center. This will better meet the diverse needs of different types of customers for genetic sequencing services, achieve economies of scale and synergistic development, and further promote the widespread adoption of genetic sequencing services.”

“We expect these independent laboratories that join our network to have a substantial number of equipment units, suitable facilities, and a relatively stable business volume,” added Pan Jiakui.

Amid the booming yet challenging landscape of the gene sequencing industry, Jieda Bio is actively strategizing and fully advancing a series of forward-looking business development initiatives.

From left to right: Pan Jiakui, CEO of DNACEO; Dr. Sun Lele, Founder and CEO of SEQUANTA; Zeng Li, General Manager of Jieda Bio

Image source: Jieda Bio

Next, Jieda Bio plans to make comprehensive efforts across two key dimensions. On one hand, it will vigorously expand its offline presence by establishing more stores to form a nationwide market network. These decentralized, localized laboratories will serve as Jieda Bio’s frontline bases for penetrating local markets, enabling closer customer engagement and timely responsiveness to the personalized needs of clients in different regions. Additionally, they will leverage the radiating effect of physical stores to enhance brand awareness and influence. On the other hand, the company will continue to increase investment in upgrading its intelligent systems, striving to build a more efficient, smart, and convenient service ecosystem. By continuously optimizing internal management, customer service, and data analytics systems, Jieda Bio aims to improve overall operational efficiency and deliver higher-quality, more precise gene sequencing services to its customers.

In the life sciences industry, restructuring and mergers and acquisitions have gradually become a prevailing trend. Jieda Biotech’s innovative restructuring of its business model, particularly the implementation of its affiliation-based partnership model, is distinctive and far-reaching in significance. By breaking down traditional competitive barriers and centering on win-win collaboration, this approach integrates fragmented resources within the industry to form a powerful synergy. This innovative model is poised to set an example for the entire biopharmaceutical sector, inspiring more enterprises to explore novel collaborative frameworks and driving the industry toward greater standardization, efficiency, and synergy.

Looking ahead, Jieda Bio will continue to seek breakthroughs in its level of informatization. By introducing advanced information technologies, such as big data and artificial intelligence, the company will further optimize the management and operations of its franchise model. Leveraging these digital tools, Jieda Bio will achieve real-time monitoring and precise guidance for its franchise stores, thereby enhancing the operational efficiency and service quality of its nationwide market network. With determined steps, Jieda Bio is continuously pioneering innovation in the development of the gene sequencing industry, leading the sector to new heights.