Hezhuo Biotech Secures Tens of Millions of RMB in Series A Funding from CICC Capital to Advance Full-Chain Reproductive Genetics Solutions

VCBeat (WeChat ID: vcbeat) has recently learned that UNIMED, a leader in the full industrial chain of reproductive genetics, has completed its Series A financing round amounting to tens of millions of RMB, with CICC Capital as the sole investor. The proceeds will be used for the construction of the company’s clinical laboratory center, the completion of single-cell capture system development, and advancing the clinical approval processes for assisted reproduction-related projects. Previously, UNIMED had completed a Pre-A financing round of RMB 45 million in 2017.

UNIMED, established in 2013, is a high-tech enterprise deeply engaged in the fields of reproduction and genetics. The company primarily focuses on providing comprehensive services across the entire industry chain, including preconception genetic testing, preimplantation genetic testing (PGT), prenatal screening, and prenatal diagnosis. It has successfully addressed the longstanding challenge of efficiently capturing cell-free fetal DNA from maternal peripheral blood for commercial genetic testing applications.

Shen Yang, Founder of UNIMED

Shen Yang, the company’s founder, has nearly two decades of experience in the field of assisted reproduction, having built technical platforms for numerous prenatal diagnosis centers and reproductive centers across China. His extensive industry experience has endowed him with unique and keen insights into the assisted reproduction sector. “Over the past twenty years, the global assisted reproduction market has maintained a compound annual growth rate of approximately 20%. As a populous country, China has made eugenics and healthy childbirth a national policy; however, fewer than 3% of embryos undergo preimplantation genetic testing (PGT) in China. In contrast, more than half of all embryos in the United States undergo comprehensive chromosomal screening,” said Shen Yang. “This represents a market with more than tenfold growth potential.”

As Shen Yang stated, assisted reproductive technology (ART) is a market worth hundreds of billions. According to VCBeat’s “2018 Assisted Reproductive Technology Industry Research Report,” approximately 7.42 million people in China have potential demand for ART. The existing market size for artificial insemination is estimated at RMB 30 billion, while that for in vitro fertilization (IVF) stands at approximately RMB 542 billion. With the postponement of first marriage and childbirth ages, coupled with the effects of the “two-child” policy and the resulting increase in advanced maternal age pregnancies, the number of couples requiring ART to conceive is expected to grow significantly in the future.

UNIMED’s areas of focus align with China’s broader market ecosystem for eugenics and healthy childbirth. From preimplantation genetic testing (PGT) to independently developed single-cell capture instruments enabling non-invasive prenatal diagnosis, the company has achieved full industry chain coverage in the field of reproductive genetics.

UNIMED is the first team in China to offer preimplantation genetic testing (PGT) services for third-generation in vitro fertilization (IVF) using SNP microarrays. In 2011, the team collaborated with the First Affiliated Hospital of Zhengzhou University to successfully apply SNP microarrays to preimplantation genetic diagnosis (PGD), resulting in the birth of China’s first “microarray baby.”

Third-generation in vitro fertilization (IVF) refers to preimplantation genetic testing for aneuploidy (PGT-A) and preimplantation genetic testing for monogenic disorders/structural rearrangements (PGT-M/PGT-SR). In contrast to first-generation IVF with embryo transfer (IVF-ET) and second-generation intracytoplasmic sperm injection (ICSI), PGT-A primarily screens early-stage embryos for chromosomal numerical abnormalities, PGT-M provides genetic diagnosis of monogenic disorders in embryos, and PGT-SR detects chromosomal structural abnormalities in embryos.

UNIMED can provide qualified reproductive centers in China with end-to-end implementation of all preimplantation genetic testing (PGT) services, ranging from embryo biopsy training to the establishment of SNP microarray platforms. This includes training in embryo biopsy and PGT microarray assays, data analysis, result interpretation, and outsourced testing services for all reproductive genetics-related items, ultimately enabling clients to fully master SNP microarray technology and independently conduct PGT testing.

“Vividly put, UNIMED has developed a comprehensive solution to address all challenges encountered in third-generation IVF, while also supporting qualified reproductive centers in independently completing embryo biopsy and PGT testing workflows,” stated Shen Yang. “Looking ahead, UNIMED will expand its scope from post-biopsy molecular diagnosis to the entire field of non-invasive prenatal diagnosis based on fetal cell capture.”

Notably, UNIMED’s proprietary cb-NIPT single-cell non-invasive prenatal genetic testing technology employs a non-invasive approach to isolate cell-free fetal cells from maternal blood, enabling whole-genome analysis at the single-cell level. This method mitigates interference from maternal genetic background, thereby accurately assessing the risk of fetal genetic disorders. The accompanying single-cell capture instrument is the world’s first fully automated platform for rare cell isolation. Combined with specific marker staining, it achieves complete, non-destructive capture of various rare cell samples at a sensitivity of one in a billion, meeting the sample requirements for a wide range of downstream high- and low-throughput genetic tests.

“Currently, most non-invasive prenatal tests (NIPT) on the market are based on cell-free DNA detection, which has certain drawbacks,” said Dr. Wu Han, Head of R&D at UNIMED. “This type of testing does not directly diagnose diseases; rather, it provides statistical results derived from computational algorithms, leading to a certain probability of false positives and false negatives. Most companies using this method handle special cases through secondary confirmation via amniocentesis and by purchasing insurance.”

If current domestic NIPT technology is considered screening-grade, then UNIMED’s cb-NIPT has the potential to become a diagnostic-grade testing product. Clinical trial results indicate that its sensitivity for cell-free DNA prenatal testing reaches 95%–99%, while the sensitivity for monogenic disease detection exceeds 90%. cb-NIPT enables identification at the single-cell level, thereby obtaining comprehensive fetal genetic information. Its future applications will not be limited to prenatal diagnosis. Shen Yang emphasizes that, due to the higher added value of single-cell whole-genome sequencing, it will address a differentiated market in the future.

It is reported that UNIMED is actively applying for the Class II medical device registration certificate for its single-cell capture platform and is expected to obtain the approval by the end of 2020.

Regarding this financing round, Shen Yang shared his perspective: “UNIMED’s industrial advantages are highly distinct. We focus on the upstream and downstream segments of reproductive genetics and are the company in China closest to commercializing NIPT using fetal cells. With over two decades of deep-rooted expertise in the field of reproductive genetics, our team possesses extensive industry experience, which constitutes our unique competitive advantage.”

Liu Senlin of CICC CapitalHe also expressed his recognition of UNIMED, stating, “The field of reproductive genetics holds broad prospects for development. UNIMED possesses core technologies and has built a comprehensive product portfolio aligned with market demands through independent R&D and product introductions. The company’s management team, led by Shen Yang, has been deeply engaged in this sector for nearly 20 years and has established strong collaborative relationships with major reproductive centers across China. Through this round of investment, CICC Capital will mobilize high-quality resources to support the company’s growth, assist in further optimizing its product mix through diversified approaches, expand its layout across the industry’s upstream and downstream sectors, and help the company become a leading platform-level enterprise in the field of reproductive genetics.”

CICC Capital is a private equity fund management platform under China International Capital Corporation Limited (hereinafter referred to as “CICC,” stock code: 3908.HK), committed to building comprehensive middle- and back-office management capabilities, strong brand influence, and outstanding fundraising and investment capabilities. The platform was officially established on March 6, 2017, and obtained the qualification of private fund manager from the Asset Management Association of China on December 13 of the same year. As CICC’s sole private equity investment fund business platform, CICC Capital centrally manages CICC’s domestic and overseas private investment fund businesses.

Currently, the types of funds managed by CICC Capital cover government guidance funds, existing economic reform funds, USD fund-of-funds, USD equity investment funds, RMB equity investment funds, M&A funds, and overseas funds. As of the end of 2018, the total assets under management (AUM) of CICC Capital exceeded RMB 300 billion.