CipherGene Secures Tens of Millions in Pre-B Funding to Advance Integrated Diagnosis and Therapy Platform for Pediatric Genetic Disorders

VCBeat (WeChat ID: vcbeat) has learned that Cipher Gene (Beijing) Genomics Technology Co., Ltd. (hereinafter referred to as “Cipher Gene”) has announced the completion of its Pre-B round financing, amounting to tens of millions of RMB. This round was led by Chengshu Investment, with participation from Shengwan Investment and Longma Peak Venture Capital. The funds will primarily be used for new product research and development, market expansion, and team enlargement, accelerating Cipher Gene’s strategic development in the pediatric genetic disorders and rare diseases market both in breadth and depth.

Cipher Gene was established in October 2015 as an innovative company dedicated to building a data-driven, integrated platform for the precise diagnosis and treatment of pediatric genetic disorders. Since securing its Series A financing round led by Guozhong Venture Capital in the previous round, what changes and new developments has Cipher Gene achieved? VCBeat conducted an exclusive interview with Dr. Yu Weishi, Founder and CEO of Cipher Gene, to provide insights into the company’s recent progress.

With the completion of this round of financing, Cipher Gene will further consolidate its core advantages in the diagnosis of pediatric genetic diseases and plans to launch a pharmaceutical CRO service system to more deeply implement the company’s strategic layout for integrated diagnosis and treatment. The company will officially upgrade and roll out a series of products and services, including launching next-generation sequencing-basediWES (Enhanced Whole Exome Sequencing for Genetic Diseases) ProductandWGS (Whole Genome Sequencing) Clinical Research Services, and launch gene data-drivenHigh-Throughput Functional Validation ServicesandDrug Screening and R&D Platform。

Since Cipher Gene officially focused on the field of pediatric genetic diseases in 2016, the company has become well-known in the industry for its robust capabilities in whole-exome sequencing applications. Cipher Gene utilizes whole-exome sequencing technology to assist physicians in making precise diagnoses of neurological genetic disorders, primarily pediatric epilepsy, and has currently expanded its testing indications to cover the broader spectrum of pediatric genetic and rare diseases.

According to incomplete statistics, there are approximately 7,000 rare diseases identified worldwide, with around 4,000 genetic disorders having clearly established pathogenic or associated genes. Conducting etiological diagnosis at the genetic level for pediatric genetic diseases and guiding subsequent treatment and interventions can ultimately help reduce the birth defect rate and promote eugenics and healthy childbirth. Currently, most companies rely on traditional whole-exome sequencing (WES) or gene panel testing for the genetic diagnosis of genetic/rare diseases. Leveraging its prior technical application experience and deep understanding of clinical needs, Cipher Gene aims to continuously provide more cost-effective genetic testing services for children with genetic/rare diseases.

By integrating and mining its proprietary database alongside domestic and international genetic disease databases, the company has launched a solution focused on Chinese patients with genetic disorders.iWES Products. Unlike traditional whole-exome testing products that focus solely on mutation analysis in exonic regions,iWES enables the detection of point mutations and insertions/deletions in exonic regions, as well as splicing variants in intronic regions and mitochondrial circular DNA. It also provides analysis and alerts for copy number variations, uniparental disomy (UPD), alternative splicing sites, and breakpoints., while also incorporating additional clinically relevant information such as pharmacogenomics. This not only improves the positive detection rate and empowers clinical treatment, but also significantly reduces the testing costs borne by patients’ families, thereby further enhancing the technical advantages and clinical value of Cipher Gene’s whole-exome sequencing products.

In addition to its existing clinical products and services, Cipher Gene has also proactively laid outWhole Genome Sequencing (WGS)Clinical and Research Servicesintegration. Cipher Gene will launch WGS-based clinical research services, which currently entail relatively high testing costs, for clients with such needs. By selecting appropriate sequencing depths based on clinical phenotypes, the company conducts comprehensive and in-depth analyses to elucidate the etiologies of complex and rare diseases. Cipher Gene anticipates that the clinical application of WGS technology will become increasingly mature as costs decrease and technologies advance, thereby demonstrating significant clinical value. Through proactive strategic investments and accumulated expertise, Cipher Gene aims to continuously provide multidimensional, higher-quality, and more comprehensive testing services for clinical experts as well as pediatric patients with genetic or rare diseases.

In the exclusive interview, Yu Weishi also revealed that Cipher Gene integrates the clinical diagnostic and therapeutic needs of pediatric genetic and rare diseases through a range of specialized services. The company has already partnered with multiple new drug development firms to provide data mining and analysis services, and has also established a platform based on zebrafish experimental technology.Pharmaceutical R&D CRO Service Platform (High-Throughput Drug Screening R&D Center)). This platform serves a dual purpose: on one hand, it is used for clinical functional validation, conducting functional experiments and identification of new genes or novel gene loci with unconfirmed clinical significance, thereby enhancing the research value of clinical testing data; on the other hand, it empowers pharmaceutical companies developing new drugs for genetic and rare diseases by leveraging gene data to provide CRO services, reducing R&D costs and improving drug development efficiency.

Since its establishment four years ago, Cipher Gene has pursued steady growth and continuously gained recognition from investors in the industry. This success is primarily attributed to the consistent endorsement of its products and services by professional clients, as well as its proactive role in leading the development of the genetic diagnosis industry for hereditary diseases.

Positioned as a specialist in the niche field of pediatric genetic disorders, Cipher Gene has established unique competitive barriers through its accumulated strengths in products, services, and sample databases. The company has assembled a team of experienced domestic and international experts, integrating its distinctive and profound expertise in artificial intelligence, big data, bioinformatics analysis, and genetic interpretation into the design of its products and services, as well as in the construction of its databases.

On another level, as one of the first companies in China to apply WES technology in clinical diagnosis, Cipher Gene has previously accumulated clinically significantClinical Sample Data from Over 30,000 Cases of Pediatric Neurological Genetic Disorders in ChinaandOver 100,000 Cases of Clinical Sample Data from Domestic Genetic Diseases, outperforming industry competitors, with its professional and technical capabilities fully recognized and trusted by specialized clients in the sector.

In terms of clinical collaboration, Cipher Gene has established stable partnerships with nearly 300 medical and research institutions, including Peking University First Hospital, Xiangya Hospital of Central South University, The Children's Hospital of Zhejiang University School of Medicine, West China Second University Hospital of Sichuan University, and The Children's Hospital Affiliated to Xi'an Jiaotong University.

The development of the genetic industry must ultimately return to rationality and align with genuine clinical needs. In his concluding remarks during the interview, Yu Weishi summarized that precise diagnosis of genetic disorders is merely the starting point for the treatment of genetic and rare diseases. As the market has gradually opened up in recent years, standing out in this sector will depend on which players can more efficiently and accurately understand clinical needs and continuously empower clinical practice.

As the lead investor in this round of financing,Wu Yinghui, Managing Director of Chengshu InvestmentCipher Gene, as a technology-driven biotech high-tech company, has allowed me to witness the team’s growth since their return to China. After three years of rigorous development and refinement following its formal entry into the field of genetic diseases in China, Cipher Gene has become a leading enterprise in the niche segment of pediatric genetic disease diagnosis. The company’s founders, Dr. Yu Weishi and Dr. Liang Mengmeng, both with strong technical backgrounds, possess the “entrepreneurial spirit” necessary to lead and foster the company’s long-term development. The company’s financial and various management systems are becoming increasingly robust, with a strong emphasis on brand building and the exploration of new business models. This aligns perfectly with Chengshu Investment’s investment philosophy. Therefore, we are highly committed to partnering with Cipher Gene in the future, navigating challenges together and striving forward to build a leading platform in China’s pediatric genetic disease diagnosis industry.

As the lead investor in Cipher Gene's Series A financing round,Jiang Chao, Investment Director at Guozhong Venture CapitalIt indicates that China’s genetic testing market for hereditary diseases is experiencing rapid growth; however, as many industry regulations and consensus standards are still being refined, opportunities coexist with challenges. Cipher Gene has remained dedicated to unlocking market value in the field of pediatric genetic disorders and has assisted pharmaceutical companies in rapidly establishing unique R&D platforms based on zebrafish experimental technology. Guozhong Venture Capital has partnered with Cipher Gene for over two years. We continue to be optimistic about the company’s data-driven, integrated strategy for the diagnosis and treatment of pediatric genetic disorders, looking forward to benefiting more Chinese children affected by these conditions.

Cipher Gene specializes in the niche field of pediatric genetic disorders, providing clinical-grade, integrated precision diagnosis and treatment services based on big genomic data. As a National High-Tech Enterprise, the company is technology-driven and operates a Production and Operations Center, a Medical Laboratory, and a High-Throughput Drug Screening R&D Center. Cipher Gene has developed leading clinical integrated diagnostic and therapeutic products and services in China, and has established stable collaborative partnerships with nearly 300 medical and research institutions.

Chengshu Investment was established in 2010. Its core team possesses extensive networks and resources in both the healthcare industry and the capital markets, with over ten portfolio companies having achieved initial public offerings (IPOs) on China’s A-share market. Currently, Chengshu focuses on growth-stage investments in the healthcare sector, striving to become the most distinguished professional investment firm in its niche markets.

Guozhong Venture Capital is an equity investment firm specializing in the entrusted management of venture capital. It currently serves as the manager of the first physical fund under the National SME Development Fund, the SME Development Fund (Shenzhen Limited Partnership), with a total size of RMB 6 billion. One-quarter of the fund’s capital comes from the central government, while the remaining three-quarters is contributed by enterprises, financial institutions, and local governments. Guozhong Venture Capital advocates an investment philosophy prioritizing research and integrating investment with research. Guided by in-depth industry chain analysis, it focuses on investment opportunities in strategic emerging industries, primarily targeting high-quality companies in three key sectors: technological innovation, biopharmaceuticals and healthcare, and TMT (Technology, Media, and Telecom).