Jieyi Bio Secures Hundreds of Millions in Strategic Funding to Lead Innovation in Infectious Disease Pathogen Genomic Testing

Recently, Hangzhou Matridx Biotechnology Co., Ltd. (hereinafter referred to as “Matridx Biotechnology”), a pioneer in innovative molecular diagnostics for infectious pathogens in China, has completed a strategic investment round amounting to hundreds of millions of RMB. This round was co-led by Alibaba and Huatai Zijin, with continued participation from existing shareholders such as Qianhai Fund of Funds and Proxima Venture Partners. Haoyue Capital served as the exclusive financial advisor for this financing round. The proceeds will be primarily used for new product development and regulatory registration, as well as to further advance the company’s nationwide commercialization strategy.

Driven by next-generation high-throughput sequencing technologies, the application areas of gene sequencing have rapidly expanded, and the market size has grown swiftly. Amidst the global pandemic of the novel coronavirus, metagenomic next-generation sequencing (mNGS) technology has not only played a crucial role in public health prevention and control—such as identifying SARS-CoV-2 and monitoring its variants—but is also gradually becoming a key solution for clinical infection diagnosis worldwide. Consequently, it has emerged as the most promising blue-ocean segment in high-throughput sequencing, following non-invasive prenatal testing (NIPT) and tumor companion diagnostics. According to the 2020 China Health Statistics Yearbook, there were over 200 million outpatient visits related to infections nationwide in 2019, and 116 million hospitalized patients received antibiotics. Among these, there were nearly 10 million new cases of lower respiratory tract infections, approximately 5.68 million sepsis cases, around 850,000 new meningitis cases, and more than 2.5 million patients in intensive care units (ICUs) annually across China. These infected patients, particularly those with complex, critical, or unusual infections, have an urgent need for mNGS testing, indicating enormous market potential.

As a pioneer in innovating molecular diagnostic technologies for infectious pathogens in China, Matridx Biotechnology is driven by the vision of “ensuring every infected patient receives precise diagnosis and treatment at the earliest possible stage.” Through years of dedicated R&D and clinical application practice, the company has addressed numerous industry pain points in product technology. Matridx boasts a globally leading, one-stop, fully automated mNGS product solution that brings mNGS applications from third-party laboratories directly into hospitals, enabling “zero-distance” mNGS testing for patients and fundamentally transforming the business model of mNGS. The company was the first in China to introduce quantitative mNGS testing, resolving the limitation of traditional mNGS being qualitative only. By achieving quantitative detection of both human and pathogen nucleic acids, it has significantly enhanced the precision of test results. Matridx has achieved the fastest turnaround time (TAT) in the industry and continues to break through barriers to deliver even faster results, providing crucial support in the “race against time” between patients and diseases. Leveraging its robust product and technological capabilities, Matridx Biotechnology has become the only company in China to provide localized mNGS testing for severe COVID-19 patients.

In terms of market coverage, Matridx Biotechnology operates the largest and most extensive network of mNGS testing delivery centers in China. Currently, through self-built facilities and joint ventures with medical institutions, the company has established regional mNGS testing delivery centers in 17 provinces and municipalities across China, achieving comprehensive service coverage in all provinces of mainland China. The company has forged in-depth collaborations with leading clinical institutions such as Peking Union Medical College Hospital of the Chinese Academy of Medical Sciences, Huashan Hospital Affiliated to Fudan University, and the Guangzhou Institute of Respiratory Health. Additionally, it is working with multiple benchmark hospitals in various regions to build metagenomic platforms, jointly promoting the clinical application of mNGS for infectious diseases.

Dr. Wang Jun, Founder and CEO of Matridx Biotechnology, stated that it is a great honor to receive the recognition and support of the investors in this funding round. Since its inception, Matridx has been committed to addressing the challenges in pathogen molecular diagnostics through automated, integrated, and intelligent solutions, directly tackling the pain point of insufficient timeliness in pathogenic microorganism detection, and providing comprehensive, scenario-based molecular diagnostic solutions for clinical practice. In the context of the rapidly spreading COVID-19 pandemic over the past year, rapid and accurate diagnosis has become particularly crucial. We will continuously iterate our automated product solutions and, through innovation at every stage and integration with big data and AI algorithms, help physicians address the global challenge of achieving "speed, accuracy, and comprehensiveness" in infectious pathogen detection, thereby enabling monitoring of emerging and sudden infectious diseases. Although the pandemic has posed challenges to public safety, it has also created opportunities for the precise diagnosis and treatment of infectious diseases. As more expert consensus statements are published, industry norms and standards will gradually take shape. Matridx Biotechnology will do its utmost to simplify molecular diagnostics, enabling patients to receive precise diagnosis and treatment more quickly.

Mr. Su Zhiqiang, Investment Director of Alibaba Group’s Investment Department, stated that as a leading enterprise in the field of molecular diagnostics for pathogenic microorganisms, Matridx Biotechnology has always been committed to developing innovative, automated, digital, and intelligent products. The company strives to expand the application of advanced molecular diagnostic technologies in human health areas such as infectious diseases, an innovative attribute highly valued by Alibaba. In February 2020, Matridx Biotechnology also signed a strategic cooperation agreement with Alibaba Cloud to jointly research and develop AI-based diagnostic systems for infectious diseases. Moving forward, we will further collaborate with Matridx Biotechnology to share our respective advantageous resources, deepen innovative applications in pathogenic microorganism detection and public health prevention and control, and jointly propel China’s infectious disease management into an era of precision diagnosis and treatment, thereby benefiting a vast number of patients.

Mr. Zhang Quanyuan, Managing Director and Head of Healthcare Investments at Huatai Zijin, stated that the outbreak of the COVID-19 pandemic has accelerated clinical recognition and demand for metagenomic next-generation sequencing (mNGS) testing for pathogenic microorganisms in patients with severe infections. As a pioneer in this emerging field and sector, Matridx Biotechnology has consistently upheld technological innovation and is committed to addressing critical industry pain points. We hold strong confidence in the founding team’s strategic insight into industry development, their efficient execution capabilities, and their sense of social responsibility since the company’s inception. We look forward to the company’s continued rapid growth in the future, bringing benefits to patients in need worldwide.

Ms. Li Shengnan, Managing Director of Qianhai Fund of Funds, stated, “We are highly optimistic about the immense market potential of pathogen detection and recognize the management team’s extensive industry experience and resilient entrepreneurial spirit. Since our previous round of investment, we have been delighted to witness the company’s rapid progress across product development, business operations, and team building. Therefore, we have decisively increased our stake in Matridx Biotechnology, firmly believing that Matridx will emerge as a leader in the field of genetic testing for infectious diseases in China.”

Mr. Li Zhe, Partner at Proxima Ventures, stated that traditional pathogen detection technologies for infectious diseases are in need of innovation, presenting a vast market potential and clear pain points. Matridx Biotechnology has rapidly emerged as an innovative leader in the field of molecular diagnostics for infectious pathogens. By continuously innovating and improving its technology, the company launched a one-stop, fully automated mNGS solution platform. After achieving the industry’s fastest turnaround time (TAT) for testing, it became the first to implement quantitative mNGS detection. Meanwhile, Matridx has reached multiple performance milestones, including the initiation of clinical research projects with leading hospitals, the establishment of a nationwide laboratory network, product upgrades and regulatory approvals, and the expansion of its R&D pipeline. We highly recognize Matridx’s leading position in the industry and remain committed to supporting the company’s continued growth.

Dr. Li Yishi, Partner at HaoYue Capital, stated, “We are honored to serve as the exclusive financial advisor for Matridx Biotechnology’s current round of financing. In recent years, the metagenomic next-generation sequencing (mNGS) sector has experienced rapid growth, with increasingly widespread clinical applications. As big data and artificial intelligence technologies are accelerated in clinical diagnostics, mNGS will play a crucial role in identifying emerging pathogens, diagnosing rare but significant pathogens, and conducting clinical big data research. Matridx Biotechnology is the only company in China capable of providing one-stop, high-efficiency systematic solutions for pathogenic microorganism detection. Over the past year, its team has demonstrated exceptional execution capabilities and sustained innovation, making it a scarce and valuable asset in the domestic market. We are optimistic about Matridx Biotechnology’s growth potential and are proud to grow alongside such an outstanding enterprise.”

Hangzhou Matridx Biotechnology Co., Ltd. is headquartered in Hangzhou, Zhejiang Province. It was co-founded by Dr. Wang Jun, a founding team member of Berry Genomics (SZ: 000710), and Mr. Zhong Jie, the former head of strategic investment at Dian Diagnostics (SZ: 300244) and a partner at the Zhejiang Big Health Industry Fund. Leveraging high-throughput sequencing (NGS) and gene editing (CRISPR/Cas) as its technological platforms, the company integrates cutting-edge technologies such as genetic testing, big data analytics, and artificial intelligence to innovate healthcare solutions, with a mission to “ensure that every patient with an infection receives precise diagnosis and treatment at the earliest possible stage.”

Matridx Biotechnology is a strategic partner of Alibaba Cloud in AI applications for infectious diseases, an application partner of Illumina, the global leader in gene sequencing, in the field of microbiomics, and a strategic partner of the National Center for Infectious Diseases (Huashan Hospital Affiliated to Fudan University). As the only company in China providing a fully automated solution for pathogen metagenomic next-generation sequencing (mNGS) testing, Matridx has been recognized by the industry as one of the “Top 20 Molecular Diagnostics Companies in the 2020 Future Healthcare 100,” one of the “Top 80 Innovative Enterprises in China’s Medical and Health Sector in 2020,” “China’s Most Promising Molecular Diagnostics Company,” and a “Quasi-Unicorn Enterprise in Hangzhou.” Upholding its mission of “Innovating Tests for the Future,” the company is poised to lead molecular diagnostics into a new era.

Alibaba Group’s mission is to make it easy to do business anywhere. It aims to empower enterprises by helping them transform their marketing, sales, and operational methods, thereby enhancing efficiency. The company provides technological infrastructure and marketing platforms for merchants, brands, retailers, and other enterprises, enabling them to leverage new technologies to engage with users and customers and operate more efficiently. Its businesses encompass commerce, cloud computing, digital media and entertainment, and innovation initiatives.

Huatai Zijin is a wholly-owned subsidiary of Huatai Securities (601688.SH) engaged in private equity investment. Leveraging the full business chain advantages of Huatai Securities and adhering to the investment philosophy of “growing together with entrepreneurs,” it provides comprehensive capital services to partners by drawing on its abundant financial and industrial resources. The company has a registered capital of RMB 6 billion and assets under management exceeding RMB 50 billion, with a portfolio of funds spanning private equity (PE), mergers and acquisitions (M&A), funds of funds (FOF), and industry-specific sectors. Committed to its industry positioning and grounded in robust sector research, Huatai Zijin has cultivated deep expertise and resources in strategic emerging industries such as healthcare and TMT.

Established in 2016 with a fund size of RMB 28.5 billion, Qianhai Fund of Funds (Qianhai FOF) is currently the largest commercially raised fund of funds and a leading private equity investment fund in China. It places equal emphasis on fund investments and direct equity investments, and is managed by Qianhai Ark Asset Management Co., Ltd., led by Jin Haitao, a pioneering figure in China’s venture capital industry. Since its inception, Qianhai FOF has cumulatively invested in 1,651 direct and indirect equity projects, with more than 67 of its portfolio companies listed on stock exchanges both domestically and internationally.

Proxima Ventures is a specialized investment firm focused on innovative medical technologies and disruptive biotechnologies, dedicated to serving exceptional innovative healthcare enterprises with significant growth potential. Managed and operated by a professional team with extensive experience in the medical industry, Proxima Ventures boasts diverse and international expertise, professional backgrounds, and industry networks. The firm currently manages multiple RMB and USD-denominated funds. Proxima Ventures has established a leading healthcare entrepreneurship ecosystem, facilitating portfolio companies’ access to high-quality clinical and industrial resources, thereby achieving remarkable experience and outcomes.

Haoyue Capital, founded in January 2014, is committed to serving as a bridge connecting China’s healthcare sector with capital. Its research and transaction coverage spans multiple subsectors, including innovative medical devices, biopharmaceuticals, in vitro diagnostics (IVD) and precision medicine, healthcare services, and smart healthcare. The Haoyue Capital team comprises seasoned investment bankers with extensive experience in China’s healthcare industry. By closely monitoring market dynamics and investment trends in the healthcare sector over the long term, the firm releases weekly healthcare investment updates and special thematic research reports, offering Haoyue’s perspectives on new policies and emerging frontiers.