GeneKey Medicine Completes Series C Round of RMB 230 Million to Strengthen Leadership in Infectious Disease Genomic Diagnostics

GensKey Medicine Announces Completion of C-Round Financing, Raising RMB 230 MillionRecently, GensKey Medicine announced the completion of its Series C financing round, raising RMB 230 million. The investors in this round included Huagai Capital, Xingze Capital, and Yuansheng Venture Capital. Legend Capital, an investor from the Series A round, made its third follow-on investment. China Renaissance served as the exclusive financial advisor for this transaction.

In 2020, GensKey Medicine, a leading enterprise in the field of high-throughput genetic testing for infectious pathogens, established medical laboratories in Beijing, Shanghai, Tianjin, Guangzhou, and Wuhan. Currently, GensKey Medicine has become the infectious disease genetic testing company with the largest number of medical laboratories across China and the fastest turnaround time. Meanwhile, GensKey Medicine is actively promoting the adoption of its “Jin Shi Yuan” pathogen metagenomic testing program in hospitals, providing comprehensive solutions for infectious disease genetic testing to large Grade A tertiary hospitals in more than ten cities, including Shenzhen, Chengdu, Zhengzhou, Xi’an, and Nanchang. By collaborating with healthcare institutions to achieve localized delivery, GensKey Medicine has enhanced these hospitals’ capabilities in disease diagnosis and nosocomial infection monitoring.

GensKey Medicine places significant emphasis on integrating product development with clinical practice. It has established in-depth collaborations with top-tier medical institutions, including China-Japan Friendship Hospital, Peking University People’s Hospital, West China Hospital of Sichuan University, the Hematology Hospital of the Institute of Hematology at the Chinese Academy of Medical Sciences, and Lu Daopei Healthcare Group. The company conducts multi-center clinical studies across disciplines such as respiratory medicine, hematology, and infectious diseases, while deeply customizing metagenomic next-generation sequencing (mNGS) laboratory workflows and algorithms to launch differentiated pathogen genetic testing products that enhance detection sensitivity and specificity. Leveraging third-generation nanopore sequencing technology, GensKey Medicine also offers rapid diagnostic and antimicrobial resistance molecular diagnostic products, committed to precisely addressing challenges in clinical infection management and quality control within the pharmaceutical and biological products sectors.

To meet the demand for infectious disease genetic testing in hospital clinical laboratories, central laboratories, and third-party medical laboratories, GensKey Medicine provides a comprehensive solution that includes reagents, automated workstations, and pathogen analysis software. The company was the first in the industry to establish a complete production and quality control system for in vitro diagnostic (IVD) reagents, and its testing reagents and software have obtained medical device licenses. Located in Tianjin, GensKey’s standard GMP-compliant reagent production workshop ensures the timely delivery of high-quality testing reagents to laboratories and customers across the country.

GensKey Medicine is a National High-Tech Enterprise, a National Technology-Based SME, a Tianjin Gazelle Enterprise, and a Leading Enterprise in Tianjin’s Strategic Emerging Industries. It has been successively honored as one of the “Top 50 Most Investable Companies in China” by Zero2IPO Group, one of the “Future Healthcare 100” by VCBeat, and the recipient of the “Best Newcomer Award in China’s Healthcare Industry” jointly selected by CHC Medical Consulting and CITIC Securities. In 2020, it ranked among the “Top 10 in Viral Detection Technology” at the Zhongguancun International Frontier Science and Technology Innovation Competition.

Since early 2019, GensKey Medicine has successively attracted investment from multiple institutions, including Legend Capital, SoftBank China, Fortune Capital, Lingang Venture Capital, and Yuanju Capital, securing over RMB 100 million in financing. Following the outbreak of the COVID-19 pandemic, the company’s core business accelerated significantly, achieving substantial growth in both revenue scale and market share. In this latest funding round, Huagai Capital, Xingze Capital, and Yuansheng Venture Capital jointly invested in GensKey Medicine. All three firms have demonstrated strong investment performance in the healthcare sector and are widely recognized as professional healthcare investment teams within the industry.

Dr. Jiang Zhi, CEO of GensKey Medicine, stated, “We are delighted to have introduced three professional strategic investors: Huagai Capital, Xingze Capital, and Yuansheng Venture Capital. This aligns with GensKey Medicine’s determination to pursue a path of specialized, innovative development. GensKey is positioned to deeply cultivate the application of high-throughput sequencing technology in the field of infectious diseases, providing clinical customers with the most valuable diagnostic products. These three institutions have previously invested in many outstanding diagnostic companies, and we believe their industry experience and resources will bring significant benefits to GensKey Medicine. We also sincerely thank our existing shareholder, Legend Capital, for its long-term and steadfast support of GensKey Medicine.”

Zeng Zhiqiang, Managing Partner of Huagai Capital’s Healthcare Fund, stated, “Infectious diseases are among the leading causes of mortality and morbidity worldwide. Metagenomic next-generation sequencing (mNGS) is ushering in a new era for pathogen diagnosis, aligning with the trend toward precision medicine. GensKey Medicine was established specifically to address infectious disease diagnostics and is one of the earliest companies in China to provide mNGS-based pathogen diagnostic services, boasting core technological advantages. Its products and services have gained widespread recognition from physicians, with a delivery network covering the entire country. Huagai Capital holds strong confidence in the company’s comprehensive team structure and the founding team’s serial entrepreneurial experience. We look forward to continuing our support for the company’s rapid growth, helping it become a leader in the field of precision infectious disease diagnostics and creating sustained value for society.”

Qiang Jing, Managing Partner at Xingze Capital, stated, “GensKey Medicine is an outstanding company that aligns perfectly with Xingze’s investment philosophy. We believe the major trend toward precision in clinical pathogen detection has clearly emerged, and GensKey is the undisputed leader in this industry. We are optimistic about the entrepreneurial qualities demonstrated by the founding team and highly appreciate the company’s rapid development since its establishment. We are confident that, under the leadership of Dr. Jiang Zhi and the efforts of the entire team, the company will achieve substantial growth. Xingze Capital will continue to grow alongside GensKey, addressing clinical pain points and benefiting patients widely.”

Lin Yi, Managing Partner at Yuansheng Venture Capital, stated, “Metagenomic next-generation sequencing (mNGS) for pathogenic microorganisms aligns with the urgent clinical need for managing severe infections. The outbreak of the COVID-19 pandemic has accelerated this recognition. We highly appreciate the product focus and sustained market expansion capabilities of the management team at GensKey. We look forward to working alongside all investor shareholders to continuously help the company optimize its product portfolio and advance regulatory compliance, thereby elevating infection control standards in both inpatient and outpatient settings across China to new heights.”

Qi Fei, Investment Director at Legend Capital, stated, “Genetic testing is a key investment focus for Legend Capital, and the detection of infectious pathogenic microorganisms has emerged as a significant new application scenario. As an industry pioneer, GensKey demonstrates courageous innovation and is committed to addressing clinical pain points and unmet needs. Dr. Jiang Zhi, an experienced entrepreneur with over a decade of expertise in the genomics sector, has earned our commitment to support the company from its early stages. We are also pleased to see the company attract interest from new investors, enabling capital to jointly drive the further growth of both the industry and the company.”

Zhou Xiang, Head of the Financial Advisory Division at China Renaissance, stated, “China Renaissance has long focused on breakthroughs in the application of cutting-edge technologies in healthcare. Pathogen metagenomic testing is one of the most clinically valuable areas in molecular diagnostics today. We firmly believe that GensKey Medicine, with its industry-leading R&D capabilities, market prowess, and execution strength, will emerge as a leader driving continuous innovation in the sector. China Renaissance is honored to serve as the exclusive financial advisor for this round of financing, and we are confident that GensKey will achieve rapid growth with the support of this funding, further solidifying its position as an industry frontrunner.”

Huagai Capital envisions becoming the most trusted investment partner for entrepreneurs and investors. It focuses on private equity investments in three major sectors: healthcare, TMT (Technology, Media, and Telecom), and culture and education. The firm has managed cumulative fund assets exceeding RMB 15 billion, with ten portfolio companies successfully listed. Its healthcare funds concentrate on biopharmaceuticals, medical devices, and healthcare services, prioritizing industry M&A consolidation as well as investment opportunities in high-growth, high-tech enterprises at early to mid-stages.

Xingze Capital was established in 2015 and is an investment firm focused on the healthcare sector, composed of more than 20 professionals and advisors with extensive investment experience in healthcare globally. Committed to being the optimal partner for entrepreneurs, Xingze Capital currently manages nearly RMB 4 billion in funds, with investments spanning innovative drugs, innovative medical devices, and healthcare industry services.

OrbiMed China is a venture capital firm focused on early- and growth-stage investments in the healthcare sector. Headquartered at Suzhou BioBAY, it maintains a global reach. The firm currently manages approximately RMB 5 billion in assets and has completed investments in more than 90 high-quality projects, primarily spanning new drug development, medical devices, in vitro diagnostics (IVD), and healthcare services. These investments have yielded substantial returns, and the firm has been repeatedly recognized as one of the Top 10 Venture Capital Funds in China’s healthcare sector and as one of the most active healthcare investment institutions in China. OrbiMed China brings together a team of seasoned professional investors and world-class scientific advisors, leveraging extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry and related fields. By focusing its expertise and harnessing rich industry resources, OrbiMed China is committed to becoming one of the most successful healthcare venture capital funds in China.

Legend Capital is an independent professional venture capital firm under Legend Holdings, established in April 2001. Its core business focuses on early-stage venture capital and growth-stage expansion investments, with a strategic emphasis on the TMT and innovative consumer sectors, professional services and intelligent manufacturing, healthcare, and culture and sports. The total assets under management (AUM) of its USD and RMB funds exceed RMB 50 billion, with a primary focus on innovation and growth opportunities in China. As of 2020, Legend Capital had invested in nearly 450 companies, among which more than 70 have successfully listed or been quoted on domestic or overseas exchanges, and over 60 have achieved exits through mergers and acquisitions. Representative portfolio companies in the healthcare sector include WuXi AppTec, KingMed Diagnostics, Pharmaron, Innovent Biologics, and Mingde Biology.

China Renaissance Holdings is a leading financial institution in China serving the new economy. With offices in Beijing, Shanghai, Hong Kong, and New York, the company employs over 600 professionals. As of June 30, 2020, China Renaissance Holdings had successfully advised clients on more than 980 transactions, including initial public offerings, mergers and acquisitions, and private financing, with a total transaction value exceeding US$146 billion. The assets under management of its private equity investment funds amounted to approximately RMB 39 billion.