Gomics and Known Biotech Complete Merger to Accelerate R&D and Commercialization of Multi-Cancer Early Detection Solutions

VCBeat (WeChat ID: vcbeat) has learned that Zhejiang Gaomei Biotechnology Co., Ltd. (Gomics, hereinafter referred to as “Gaomei Biotech”) and Nuoen Biotechnology (Suzhou) Co., Ltd. (Known Biotech, hereinafter referred to as “Nuoen Biotech”) announced in Suzhou the successful completion of their merger and the signing of the relevant agreement on May 4, 2020. The post-merger parent company will adopt the Gaomei Biotech brand, while retaining “Nuoen Biotech” as a sub-brand under its portfolio. WinX Capital served as the exclusive financial advisor for this merger.

Gaomei Biotech is a high-tech enterprise focused on the development of bioinformatics algorithm software, tumor epigenetics, and big data analytics. Its business scope covers early cancer detection (including screening and early diagnosis), dynamic monitoring, prognostic assessment, recurrence surveillance, and bioinformatics big data analysis. Gaomei Biotech has established a leading advantage in core technologies within the field of early cancer detection based on epigenetics. The company possesses profound technical expertise in trace DNA processing, machine learning algorithms for noise reduction in databases, large-sample whole-genome bisulfite sequencing (WGBS) databases across multiple cancer types, its proprietary big data analytics platform and cfDNA analysis algorithms, as well as biomarker discovery (with global first-to-discover achievements).

Norn Biotech has conducted years of clinical research and provided scientific and technical services in the fields of companion diagnostics for targeted oncology drugs and immunotherapies, as well as auxiliary diagnostics for monogenic hereditary diseases. The company has collaborated with renowned clinical medical institutions and research organizations in the Yangtze River Delta region on multiple research projects related to early cancer screening, focusing on practical clinical issues to develop analytical insights and integrated solutions for critical clinical challenges.

The newly merged Gaomei Bio boasts a comprehensive, professional team with end-to-end expertise spanning from technological innovation to product development, and from R&D and manufacturing to marketing and sales.

Dr. Deqiang Sun, Chairman & CSO

Dr. Sun Deqiang, founder of the original Gaomei Biotech, has been appointed Chairman and Chief Scientific Officer (CSO) of the merged Gaomei Biotech. Dr. Sun is one of the world’s leading young bioinformaticians, with over a decade of focused research in epigenetics, yielding substantial scientific achievements and patents. He has published more than 30 papers in prestigious journals such as Nature Genetics and Cell Stem Cell, including over 10 as first or corresponding author. The cumulative impact factor of his publications exceeds 250, and his citation counts significantly surpass the average for journal articles, with individual papers receiving approximately 800 and 300 citations respectively. Dr. Sun has also developed multiple open-source software tools and servers, including BSeQC, RRBSMAP, MOABS, OUMR, MMINT, LIBIS, CMSIP, and GsmPlot, among which his methylation analysis software ranks first globally in citations. Previously, Dr. Sun served as a tenured Assistant Professor and doctoral supervisor at Texas A&M University. In 2018, he was recognized with a national-level talent title, and he currently serves as an expert in the National Science and Technology Library and as a reviewer for the National Natural Science Foundation of China.

Mr. Lu Guohua, CEO

Mr. Lu Guohua, founder of the former Norn Biotech, has been appointed as CEO of the merged Gaomei Biotech. Mr. Lu brings extensive experience in the biomedical sector, having previously served as Vice President of Sanpower Biomedical Industry Group and CEO of Wuxi Sanpower Medical Management Co., Ltd. He has participated in numerous investment, merger, and acquisition transactions within the biomedical field, as well as post-investment management, and is well-versed in the incubation and growth cultivation of startup enterprises. His career has spanned various managerial roles, including corporate strategy, branding, marketing, human resources, sales, and operations.

The newly merged Gaomei Biotech boasts a R&D technical team of nearly 20 members, including eight PhDs. Their expertise spans multiple disciplines, such as bioinformatics, clinical medicine, biochemistry, and biopharmaceuticals. Under the leadership of Dr. Sun Deqiang, the team is leveraging the company’s distinctive strengths in epigenetics and machine learning to focus on the development of early cancer detection products.

Dr. Sun Deqiang and Mr. Lu Guohua both grew up in Dongtai, Jiangsu Province. As alumni of Nanjing University, they share strong mutual trust and seamless collaborative synergy. More importantly, their values are closely aligned, and they hold a high degree of consensus on the direction and philosophy of early cancer detection. The successful merger of Gaomei Biotech and Nuoen Biotech represents an integration and restructuring of the two companies’ existing advantageous resources. This has enabled the newly formed Gaomei Biotech to achieve a more rational division of labor and more comprehensive internal capabilities, adhering to the principle advocated by the two founders: “Let professionals focus on their areas of expertise.”

Dr. Sun Deqiang, Chairman and Chief Scientific Officer (CSO) of Gaomei Biotech, stated, “The merger between Gaomei Biotech and Nuoen Biotech is a perfect match that brings out the best in both parties. The Gaomei Biotech team has previously focused intensively on mapping epigenetic profiles across multiple cancer types and identifying biomarkers for early cancer detection. In the field of DNA methylation, we started early and conducted research at an early stage, but we did not rush to launch or release our R&D products. Instead, we aimed to refine our technology and products through more rigorous experimental design and technical validation. After all, early cancer detection is a matter requiring utmost rigor in my value system. We hope that every product or service we launch can truly address the core pain points of those in need, creating tangible value. Developing valuable products has always been our original intention. Over the past few years, we have consistently employed Whole-Genome Bisulfite Sequencing (WGBS). To date, we have accumulated nearly 3,000 WGBS data sets across multiple cancer types, making it one of the largest self-built cancer WGBS databases in China. Although WGBS is the gold standard for DNA methylation sequencing, it is also the most expensive sequencing method. We have invested significant resources in this approach and subsequent analyses, but today we believe these investments have been worthwhile. Our data and algorithmic advantages are playing an increasingly important role in areas such as early cancer detection technology development, prognostic assessment, and cancer drug development and screening. Specifically regarding early cancer detection, we will gradually commercialize our accumulated technological achievements for cancers including liver cancer, lung cancer, ovarian cancer, and pediatric medulloblastoma, thereby serving clinical practice and providing necessary assistance and services to high-risk populations, suspected patients, and diagnosed patients.”

Mr. Lu Guohua, CEO of Gaomei Biotech, stated, “Dr. Sun Deqiang is currently a leading bioinformatics scientist in China, with exceptional ability in translating technology into practical applications. Dr. Sun and I share a firm belief and common goal: to enable our non-invasive early cancer detection products—which can detect cancer at very early stages and precisely locate the site of early-onset cancer using only 8–10 mL of peripheral blood—to help those in need detect cancer earlier, thereby facilitating early diagnosis and treatment and increasing patients’ chances of achieving clinical cure. Starting from the end of this year, we will roll out early detection products for single cancer types one after another. By accelerating R&D, we aim to launch multi-cancer early detection products for gastrointestinal cancers and the four major female cancers in the next two years, and within approximately five years, we strive to introduce multi-cancer detection panels covering the top ten most common cancers. In terms of product strategy, NGS-based Laboratory Developed Tests (LDTs) and PCR-based In Vitro Diagnostics (IVD) will proceed along parallel tracks. Moving forward, we will deepen our scientific research collaborations with clinical experts at medical institutions, jointly dedicating ourselves to solving each clinical challenge. Only R&D focused on addressing clinical problems represents the direction in which we concentrate our efforts. In the field of early cancer detection, we benchmark against GRAIL in the United States. We are confident that, leveraging China’s advantageous environment for biomedical R&D, we will strive to become a strong competitor to GRAIL.”

Dr. Wang Jinghong, Co-Founder of WinX Capital, stated that he is delighted to witness the merger between Gaomei and Nuoen, which achieves a win-win outcome. We have consistently monitored the field of early cancer screening and diagnosis within the industry. The early detection market is on the verge of an explosive growth phase. Particularly under the dual pressures of China’s aging population and the rising number of new cancer cases, companies specializing in early cancer detection will encounter significant development opportunities. Regarding technological directions for early screening, various approaches currently exist. However, the latest data released by GRAIL, a global leader in early cancer screening based in the United States, indicates that DNA methylation is the mainstream technological pathway for future early cancer screening and represents the optimal approach for multi-cancer early detection at present. In this domain, Gaomei Biology has established a clear leading advantage, demonstrating substantial technical superiority in both its multi-cancer database and algorithmic capabilities. Beyond the technology itself, I am even more optimistic about the current composition of the founding team and the highly competent R&D team. I believe that Gaomei and Nuoen will accelerate their development following this merger, and there are strong reasons to expect them to deliver valuable early detection products and services.