Tongshu Genomics Completes RMB 500 Million Series C Financing to Advance IVD Pipeline and Hospital Channel Expansion
On June 15, 2021, Changzhou Tongshu Biotechnology Co., Ltd. (hereinafter referred to as “Tongshu Gene”) officially announced the completion of its Series C financing round amounting to RMB 500 million. The round was co-led by GL Capital Group, Bohua Capital, and Oceanpine Capital, with follow-on investments from Jinyuan Capital Management (Xiamen) Co., Ltd., Haichuang Fund of Funds, and Yinhe Yuanhui Investment Co. Ltd. Existing shareholders Beijing Lang Ma Feng VC LTD. and Jiangsu Tuobang Investment Co., Ltd. continued to increase their stakes.
Previously, TONGSHU GENE received angel-round investment from Ningbo Boyi at its inception, secured Series A funding from Fosun Health Technology (formerly “Fosun Medical”) in 2018, and obtained Series B financing led by Yuansheng Capital in 2020. The funds raised in this round will be used for the clinical development of several subsequent blockbuster IVD new products, including ctDNA and early cancer screening assays, as well as to establish direct sales channels into more than 500 Grade IIIA hospitals.
Yan Linghua, Founder and CEO of TONGSHU GENEThe company expressed its gratitude to both new and existing investors for their unwavering support of TONGSHU GENE. Over the past four years, TONGSHU GENE has remained committed to a “product + service” strategy centered on hospitals. By addressing clinical needs, the company has developed a series of IVD diagnostic technologies with significant technical barriers. It looks forward to obtaining NMPA approvals for more innovative products in the near future, thereby benefiting patients and contributing to the advancement of precision oncology treatment.
At the same time, the event featured a roundtable discussion with prominent investors, who engaged in in-depth exchanges on investment and R&D directions in the field of precision oncology diagnostics, as well as the key characteristics required for a genetic testing company to outperform its competitors.
Panel Discussion One
Panel Discussion Two
TONGSHU GENE, established in November 2016, is a molecular diagnostics company possessing dual capabilities in both Laboratory Developed Tests (LDTs) and In Vitro Diagnostics (IVD). Specializing in the integrated research and development, manufacturing, and sales of tumor molecular diagnostics, TONGSHU GENE has adopted a “multi-platform layout” strategy to develop several blockbuster IVD diagnostic kits, including those for tumor Microsatellite Instability (MSI) and circulating tumor DNA (ctDNA). Its competitive advantages in the industry are built upon gene testing services centered on NGS ultra-low input library preparation technology as a core barrier, and a big data translational research center based on a tumor genomics specimen bank. The company is committed to becoming one of the leaders in the trillion-yuan precision oncology market. Over the four years since its establishment, TONGSHU GENE has achieved leapfrog development. Its colorectal cancer MSI detection kit received China’s first Class III medical device registration certificate for MSI testing in January 2021, positioning this kit to become one of the IVD products with the highest market value in the precision oncology sector.
LDT, or Laboratory Developed Tests, refers to genetic testing companies establishing laboratories within hospitals. Through formal bidding processes, these companies gain hospital access and provide comprehensive personnel training and technical support, thereby offering genetic testing services to patients across the entire hospital. TONGSHU GENE holds complete qualifications for oncology LDTs and pathology departments, utilizing certified kits and reagents throughout its processes. Leveraging superior technology and a stable, standardized sales management model, the company efficiently provides enterprises with steady cash flow. TONGSHU GENE’s LDT services achieved profitability in 2020, making it the first oncology genetic LDT service provider in the industry to do so. With a leading market share, the company continues to demonstrate strong growth momentum.
Tongshu Gene possesses a comprehensive and complete technical platform with extensive, in-depth technological coverage in the field of IVD (In Vitro Diagnostic) product development. Guided by its core philosophy of multi-platform innovation, the company has developed IVD products with distinct core technical advantages across first-generation sequencing, next-generation sequencing (NGS), quantitative fluorescent PCR, and CRISPR platforms. Tongshu Gene obtained China’s first Class III medical device registration certificate for an MSI (Microsatellite Instability) detection product, securing a unique first-mover advantage in the detection of 17 types of tumors, including gastric cancer, colorectal cancer, and breast cancer. Statistics indicate that the annual disease burden of MSI-H tumors in China reaches as high as 324,000 cases. Leveraging China’s first Class III certificate, Tongshu Gene has established significant product barriers and unlocked vast market potential in the MSI testing sector. Furthermore, several key products are currently undergoing approval processes with the National Medical Products Administration (NMPA), and its molecular diagnostic IVD portfolio provides comprehensive coverage of the entire oncology diagnosis and treatment workflow.
TONGSHU GENE has established a strong foothold in the Chinese market. By actively expanding its sales channels, the company has extended its presence to more than 30 provinces, municipalities, and autonomous regions across China, covering over 1,000 hospitals nationwide. Having undergone years of collaboration and refinement, TONGSHU GENE’s sales team boasts industry-leading capabilities. Over the four years since its establishment, the company has achieved rapid growth in sales revenue and now firmly ranks among the top tier of the industry. As more blockbuster products sequentially obtain regulatory approvals, TONGSHU GENE is poised to emerge as a leader in the trillion-yuan precision oncology market.
Tongshu Gene’s R&D team boasts robust technical and academic expertise. Dr. Cai Weijing, the company’s Chief Technology Officer, is a leading researcher in China on tumor evolution theory, with related studies published in top international journals such as JCO, Annals of Oncology (ANO), and Journal of Thoracic Oncology (JTO). In March this year, Tongshu Gene’s proprietary ctDNA detection technology supported the Phase IIb clinical study of furmonertinib, which was featured in The Lancet Respiratory Medicine, a journal with an impact factor of 25.094. By joining forces with Thermo Fisher Scientific, a world-leading high-throughput sequencing biotechnology company, Tongshu Gene has established a precise ctDNA detection system based on high-throughput gene sequencing and bioinformatics analysis. With over 500 molecular pathology testing items, the system enables non-invasive, accurate, and dynamic genetic analysis of tumors, providing clinical consultation services for precision medication, efficacy monitoring, postoperative recurrence monitoring, risk prediction, and early detection. Furthermore, Tongshu Gene has entered into a strategic partnership with Illumina to deliver ultimate sequencing and testing solutions.
GL Capital is an investment firm focused on controlling stakes and growth-stage enterprises in China’s healthcare sector. Founded by Mr. Li Zhenfu, former President of Novartis China, the firm manages USD- and RMB-denominated private equity and hedge funds, with total assets under management exceeding US$2 billion.
China is the world’s second-largest healthcare market. Structural reforms, population aging, and consumption upgrading have created numerous investment opportunities. The team at GL Capital Group brings together diverse expertise from backgrounds in healthcare, investment banking, consulting, and corporate operations, integrating multidisciplinary knowledge and resource channels. We are committed to becoming the most trusted partner for enterprises and jointly promoting the healthy development of China’s healthcare industry.
Bohua Capital, established in 2017, is a professionally operated private equity investment firm that focuses on investing in high-quality growth-stage companies in China;
Bohua Capital primarily focuses on growth-stage and pre-IPO companies in the advanced manufacturing and healthcare sectors, with key areas including next-generation information technology, integrated circuits, artificial intelligence, 5G communications, new energy vehicles, and medical devices.
To date, Bohua Capital has invested in 14 leading domestic enterprises, covering the fields of chip design, artificial intelligence, new energy vehicles, cybersecurity, communications technology equipment, and healthcare.
Oceanpine Capital focuses on investing in high-tech and healthcare enterprises led by innovative technologies, particularly those with breakthrough and revolutionary hard-core capabilities, including sectors such as AI, semiconductors, 5G, cloud computing, enterprise services, big data, new energy, cybersecurity, the Internet of Things (IoT), innovative drugs, and innovative medical devices.
Oceanpine Capital’s executive team brings an average of over 20 years of entrepreneurial experience across multiple industries, deep-rooted industrial and investment practices in the Chinese domestic market, international operational management expertise, and extensive industry connections. Supported by continuous and in-depth industry research, we uphold integrity while pursuing innovative strategies, foster critical thinking, and empower our portfolio companies to jointly build world-class enterprises.
Jinyuan Capital Management (Xiamen) Co., Ltd. is a state-owned, market-oriented investment institution under Xiamen Jinyuan Investment Group Co., Ltd. Over the years, the company has initiated and established multiple private equity funds, including the Xiamen Jinyuan Zhanhong Equity Investment Fund, the Xiamen Relief Fund, the Xiamen Gongji Equity Fund, and the Xiamen Jinli Fund, with assets under management exceeding RMB 4.5 billion. Among these, the Xiamen Jinyuan Zhanhong Equity Investment Fund platform focuses closely on sectors such as big health, intelligent manufacturing, and mass consumption, paying particular attention to new transformations driven by the new economy and cutting-edge technologies facilitating the upgrading of traditional industries. By selecting outstanding early-to-mid-stage fund managers and entrepreneurial enterprises, the platform continuously builds a sustainable investment ecosystem. To date, the Xiamen Jinyuan Zhanhong Equity Investment Fund platform has made direct and indirect investments in over 200 projects, striving to create an equity investment resource platform that connects tens of thousands of entities.
Haichuang Fund of Funds focuses on the fields of hard technology and the comprehensive health ecosystem, implementing the “industrial investment bank” model. Upholding the philosophy of “industry-based, co-creation and win-win,” it leverages the Group’s industrial background and extensive industry resources to continuously connect high-quality capital and resources during business development, striving to cultivate an industrial ecosystem through its funds. Currently, Haichuang Fund of Funds manages assets exceeding RMB 30 billion, has invested in over one hundred companies, and has nurtured multiple listed companies as well as unicorn and gazelle enterprises.
Yinhe Yuanhui Investment Co., Ltd. is a wholly-owned alternative investment subsidiary of China Galaxy Securities Co., Ltd., with its actual controller being Central Huijin Investment Ltd. Guided by the business philosophy of “Sourcing from Diverse Streams, Converging Wealth,” Yinhe Yuanhui conducts direct equity investments and financial product investments using its own funds. The company’s equity investments focus on three key sectors: advanced manufacturing, healthcare, and enterprise services, targeting leading companies with prominent competitive advantages in niche markets and distinct technological attributes. As a market-oriented, state-owned long-term capital firm with a securities brokerage background, Yinhe Yuanhui adheres to the principle of value investment, leverages its brokerage heritage to empower corporate development, and supports the high-quality growth of the real economy.
Langmafeng Venture Capital was established in September 2007. It currently employs over 150 staff members and maintains offices in Beijing and Shenzhen. In 2019, it was recognized by Lieyunwang and InvestmentJia.com as one of the “Top 10 Investment Firms in Advanced Manufacturing.” In 2020, it was selected by Qimingpian’s 24 Xinsheng as one of the “Top 30 Most Active Venture Capital Firms in Q1 2020.” Also in 2020, it received multiple accolades from China Venture: “Top 50 Best Venture Capital Firms in China for 2019,” “Top 30 Best Chinese Venture Capital Firms in China for 2019,” and “Top 20 Best Investment Firms in the Advanced Manufacturing and High-Tech Industries in China for 2019.” Furthermore, in 2020, it was honored by Zero2IPO as one of the “Top 100 Venture Capital Firms in China for 2020,” and by Cyzone as one of the “Top 50 Healthcare Investment Firms,” “Top 30 Advanced Manufacturing Investment Firms,” and “Top 50 Enterprise Services Investment Firms.” Langmafeng Venture Capital has cumulatively invested in more than 200 companies, focusing on high-tech sectors such as biopharmaceuticals and medical devices, next-generation information technology, high-end equipment, and new materials.
Jiangsu Tuobang Investment Co., Ltd. is a specialized investment firm focusing on equity investments and corporate IPO planning. It concentrates on analyzing industry development trends and is committed to identifying high-growth small and medium-sized enterprises (SMEs) with core competitiveness in niche sectors. Its portfolio includes multiple listed companies and SMEs in fields such as healthcare, information technology, and new materials.