Aegicare Completes RMB 30 Million Series A Funding to Advance Genomic Intelligence for Precision Diagnosis of Genetic Disorders

On June 14, 2019, Aegicare (Shenzhen) Technology Co., Ltd. (hereinafter referred to as “Aegicare”) announced that it had completed its Series A financing round of RMB 30 million. This round was led by Hechuang Capital, with continued increased investment from existing investors, and Xinghan Capital served as the exclusive financial advisor.

Aegicare, established in February 2017, is dedicated to the precise diagnosis and screening of genetic diseases. It is the only member unit of the China Maternal and Child Health Association in the field of precision medicine. The company’s core team hails from publicly listed U.S. companies specializing in clinical genetic diagnostics, as well as top-tier universities both in China and abroad. As a national high-tech enterprise, Aegicare is the sole entity in China possessing millions of cases of experience in European and American clinical genetic testing and holding multiple specialty certifications from the American Board of Medical Genetics and Genomics (ABMGG). To date, Aegicare employs over 100 staff members. Its headquarters in Shenzhen houses a 1,000-square-meter medical laboratory approved by the National Health Commission and compliant with U.S. CLIA/CAP standards. Additionally, the company has established R&D centers in Beijing, Wuhan, and Palo Alto, Silicon Valley, USA. Its services cover nearly 200 Grade III Class A hospitals across China and support hundreds of clinical physicians.

Aegicare pioneered the core concept of Genomic Intelligence. In 2018, it jointly established the Genomic Intelligence Collaborative Innovation Laboratory with the College of Engineering at Peking University and Tongji Medical College of Huazhong University of Science and Technology, to jointly promote the application of artificial intelligence computational models in the mining, translation, interpretation, and clinical decision support of genomic information for genetic diseases.

In early 2019, the National Health Commission released the Guidelines for the Diagnosis and Treatment of Rare Diseases (2019 Edition), deploying and promoting standardized diagnosis and treatment for genetic diseases, including rare diseases, at the policy level. Statistics show that China currently has more than 30 million pediatric and adult patients with genetic diseases, with approximately 900,000 newborns affected by birth defects added each year. However, various high-prevalence genetic disorders, such as adolescent epilepsy and familial hypercholesterolemia, have not yet been included in birth defect statistics. The first step in preventing and controlling birth defects is achieving precise diagnosis. In 2018, over 2 million people in the United States underwent genetic diagnosis using high-throughput sequencing technology, which has been widely covered by medical insurance. In contrast, China’s current penetration rate for genetic diagnosis remains low, with annual testing volumes not exceeding 100,000 cases, indicating a significant gap.

Dr. Li Yang, CEO of Aegicare, researcher at the Institute of Smart Health of Huazhong University of Science and Technology, and adjunct professor at the School of Medicine and Health Management, Tongji Medical College, stated that compared to non-invasive prenatal testing (NIPT) and tumor companion diagnostics (CDx)—the first two clinical application scenarios where high-throughput sequencing technology was implemented—genetic diagnosis has the earliest academic foundation but the latest clinical adoption. Currently, there is a gap of more than five years between China and the United States in this field. The most fundamental reason for this disparity lies in the complexity of genetic diseases, which presents challenges beyond the sequencing technology itself. The true challenge resides in clinical bioinformatics analysis and clinical genetic interpretation after the sequencing instruments output raw sequencing data.

It is reported that since its establishment two and a half years ago, Aegicare has leveraged a multidisciplinary team of scientists and engineers specializing in bioinformatics, databases, algorithms, and clinical genetics to jointly develop the AEGIS™ Intelligent Genetic System. This system has optimized and enhanced multiple dimensions of genetic diagnosis, including detection rate, turnaround time, personnel efficiency, cost, and clinical accuracy, with key indicators now approaching industry standards in the United States. In addition to internal use at Aegicare, AEGIS™ has been deployed in several high-caliber medical institutions, such as Wuhan Union Hospital, the Zhongshan Ophthalmic Center of Sun Yat-sen University, and Shenzhen Maternity and Child Healthcare Hospital. This deployment empowers healthcare institutions to independently issue clinical genetic diagnostic reports, particularly as sequencing instruments become miniaturized and increasingly accessible to grassroots medical facilities. Looking ahead, the core competitive advantage of AEGIS™ lies in its deep integration with specific clinical scenarios. In the near future, Aegicare will collaborate with the China Association Against Epilepsy to launch the “China Epilepsy Gene 1.0 Project,” aiming to advance industry standards in the field of precision medicine for epilepsy.

Dr. Li Yang stated that genetic intelligence is the core strategy of Aegicare, with its applications currently empowering precision clinical genetic diagnosis. Somatic mutations identified through tumor tissue genetic testing demonstrate value primarily in the treatment phase, whereas germline mutations detected via genetic testing theoretically accompany the individual and multiple family members throughout their lives, yielding more profound health, economic, and social benefits. Recent studies have further shown that at least one in six people carries at least one pathogenic genetic mutation for which corresponding clinical interventions are available. He revealed that Aegicare uses precision diagnosis as the starting point for implementing genetic intelligence. As testing costs continue to decline and data models for genetic diseases rapidly accumulate, the company’s product line will extend toward genetic screening, ultimately achieving personalized health management based on genetic information.

Dr. Qi Wei, Vice President of Hechuang Capital, the lead investor in this round, stated that clinical diagnosis of genetic diseases in China has long relied on the personal experience and even subjective judgment of geneticists, resulting in a market structure characterized by “large demand but fragmented, small-scale operations.” AngeCare has built an industry-leading intelligent genomics platform centered on standardization, scalability, automation, and intelligence, with the potential to be the first to achieve high-quality, large-scale implementation of highly complex genetic diagnostics, thereby accelerating their integration into mainstream medical practice.

It is reported that Aegicare completed its seed round, angel round, and Pre-A round of financing in February 2017, October 2017, and March 2018, respectively.

Hechuang Capital is an early-stage venture capital firm founded by an investment management team with a global perspective and extensive industry expertise, focusing on the ICT and medical device sectors. Hechuang Capital seeks cutting-edge technologies globally, primarily in China, North America, and Israel, with a particular emphasis on investing in technology-driven enterprises. The Hechuang team boasts rich industry experience and a track record of successful entrepreneurship, having invested in over 80 innovative companies worldwide and nurtured a number of leaders in niche industries. Leveraging its strong technological foundation and years of operational practice, Hechuang Capital is committed to providing portfolio companies with strategic guidance and resource support, facilitating industry connections, linking them with investment institutions, enhancing their competitiveness, and creating greater social value. Guided by clear positioning and backed by exceptional technological foresight and market acumen, the Hechuang team has developed, refined, and perfected its investment methodology for technology-innovation enterprises through practical experience, gradually forming a unique investment style.