Singular Genomics Completes Over RMB 200 Million Series C+ Financing to Build a China-led Sequencing Ecosystem

In August 2022, Cygnus Biosciences Beijing Co. Ltd. (hereinafter referred to as “Cygnus”), a company dedicated to the research and development of domestically produced gene sequencers, announced the completion of its Series C+ financing round, raising over RMB 200 million. The round was led by the China State-owned Enterprise Structure Adjustment Fund Phase II (the “National Adjustment Fund”), with participation from Wuxi Guolian Guokang Health Industry Investment Center (Limited Partnership) (“Wuxi Guolian”). ROBE CAPITAL served as the exclusive financial advisor.

Leveraging two core sequencing technologies—proprietary fluorogenic sequencing chemistry and error-correcting code (ECC) sequencing strategies—Dr. Zitian Chen of Peking University, in collaboration with renowned international scientist Academician Xiaoliang Sunney Xie and Professor Yanyi Huang’s team at Peking University, founded Cygnus Biosciences. Focused on sequencing technology, Cygnus Biosciences drives innovation in underlying sequencing methods and engineering to deliver high-performance sequencers, establishing itself as a gene technology innovator serving the global market.

Dr. Chen Zitian, CEO of Cygnus Biosciences, believes that developing proprietary sequencing technologies and products is the key pathway for domestic companies to reverse the current situation, where the sequencing sector is under a dual monopoly of technology and market held by foreign enterprises. Cygnus’s first S100 gene sequencer was officially launched in 2022, and the application for its Class III medical device registration certificate with the National Medical Products Administration (NMPA) has been initiated. In June 2022, the S100 gene sequencer and its accompanying sequencing kits obtained CE-IVDR certification from the European Union. The R&D capabilities and product quality of Cygnus Biosciences have been recognized and affirmed by authoritative institutions both domestically and internationally, marking that Cygnus’s sequencers are poised to enter the international market. As an upstream platform company with fully independent intellectual property rights, Cygnus Biosciences, adhering to a spirit of openness and cooperation, looks forward to more extensive exchanges and collaborations with industry peers to jointly create a brighter future for the genomics industry. While achieving continuous breakthroughs in its own technologies, Cygnus Biosciences is also committed to leveraging its foundational technological advantages to meet the diversified product and service needs of its partners, promoting broader applications of high-throughput sequencing technology, and assisting partners in jointly exploring international markets.

Dr. Chen Zitian, CEO of CygnusIt was stated that developing a domestic gene sequencing platform with fully independent intellectual property rights is merely the first step; the top priority lies in continuous iterative R&D and advancing the industrialization of domestic sequencing platforms. The process of building engineering prototypes is time-consuming and lengthy, requiring constant product improvement and refinement based on user needs and feedback, thereby enabling the sequencing platform to evolve from “usable” to “user-friendly.” Cygnus aims to build a new sequencing ecosystem led by China, based on its fully self-developed domestic sequencing platform.

National Adjustment FundStatement: This investment marks another significant strategic move by the National Adjustment Fund, a national-level equity investment fund, in the field of life sciences and technology. Genomic information is a crucial component of biosafety, and possessing sequencing equipment with independent intellectual property rights is of great significance for safeguarding national information security. The National Adjustment Fund has made a strategic investment in Cygnus, recognizing the company’s internationally pioneering sequencing technology with independent intellectual property rights. This investment will create industrial chain complementarity and synergy with the fund’s existing portfolio companies, aiming to build China’s own sequencing ecosystem and platform.

Wuxi GuolianStatement: We are delighted to co-invest with the National Adjustment Fund in a star enterprise within China’s gene sequencing sector. Gene sequencing is currently one of the fastest-growing segments in molecular diagnostics, widely applied in the detection of tumors, pathogenic microbial infections, and genetic diseases. However, the upstream segment of the gene sequencing industry, particularly sequencers and consumables, still faces challenges such as dependence on foreign core technologies and high sequencing costs. Cygnus has pioneered proprietary underlying sequencing technologies, holding fully independent intellectual property rights for its sequencers and patented supporting consumables. Additionally, it offers advantages including higher accuracy, lower costs, and shorter turnaround times for sequencing results. We are confident in the company’s future development.

Zhang Chen, Partner at ROBE CAPITALStatement: It is a great honor to assist Cygnus in completing this round of financing. The company’s elegant technology and products are truly impressive. The Cygnus team demonstrates exceptional systems engineering capabilities, spanning from the organic synthesis of novel fluorescent nucleotide substrates to parity check algorithms, and from three-dimensional dynamic programming to microwell array design. Each detail requires both intriguing scientific insight and sophisticated engineering expertise. With the widespread adoption of precision medicine, the upstream sequencing sector is poised for significant industrial transformation and market restructuring. We look forward to Cygnus leveraging its unique technological advantages to build a comprehensive innovation ecosystem for sequencing tailored to the global market.