MGI Tech Secures $200 Million Series A Funding to Accelerate Development of Next-Generation Gene Sequencers

Recently, VCBeat (WeChat ID: vcbeat) learned that MGI, a subsidiary of BGI Group, has completed a $200 million Series A financing round. This transaction is the largest funding deal in China’s gene sequencing sector to date.This round of financing was led by CITIC CICC and Green Pine Capital.Capital and Orient Securities Capital provide support.

To date, MGI has sold more than 1,100 gene sequencers, with its sales network covering 16 countries and regions. Meanwhile, MGI’s internal R&D institutions have published more than 300 high-impact scientific research papers.

Recently, MGI collaborated with the China Academy of Chinese Medical Sciences to develop a gene sequencer for DNA barcoding identification of traditional Chinese medicines. Officially launched on April 26, 2019, this instrument is the world’s first intelligent gene sequencing system for traditional Chinese medicines, capable of accurately and rapidly identifying the genetic profiles of herbal samples.

As a leading developer of gene sequencers, MGI has invested RMB 5 billion in the research and development of gene sequencing technologies and filed more than 500 technical patents, including over 80 PCT patents under the Patent Cooperation Treaty.

Since 2015, MGI has launched multiple models of gene sequencers. The MGISEQ-2000, a comprehensive gene sequencer from MGI, supports two different chip specifications and provides a dual-chip independent operation platform. This instrument can complete the testing of 24 tumor samples in less than 48 hours. The MGISEQ-T7, released by MGI in October 2018, is the most powerful gene sequencer to date. The MGISEQ-T7 achieves a daily data output of up to 6 Tb, completing PE150 gene sequencing in just 24 hours. Additionally, the sequencing cost per Gb for the MGISEQ-T7 is only $5, enabling the lowest gene sequencing cost worldwide.

MGI is gradually breaking the upstream market monopoly in the gene sequencing industry, establishing a stable and open industrial ecosystem based on independent research and development, thereby transforming the inherent closed industry model and building a gene sequencing platform.

According to MGI, the global gene sequencing market is projected to reach $12.45 billion in 2022, with the Asia-Pacific region expected to account for $2.39 billion. By 2020, China’s gene sequencing market is estimated to reach RMB 9.8 billion (approximately $1.43 billion).

Currently, only three companies in China are capable of independently developing and mass-producing high-throughput gene sequencers, with MGI being one of them. The completion of MGI’s first round of financing demonstrates that its R&D capabilities have gained recognition from the capital market. In the future, MGI plans to further strengthen the R&D and production of gene sequencers, build a more comprehensive product portfolio, and enhance the market ecosystem of the gene sequencing industry.

CITIC Jinshi Fund Management Co., Ltd. was established in 2013 with a registered capital of RMB 100 million, and is a subsidiary of Jinshi Investment Co., Ltd. CITIC Jinshi raises and manages client funds for equity investments, providing clients with financial advisory and investment management services for equity investments.

Green Pine Capital is a venture capital investment management firm. Currently, it manages assets exceeding RMB 8 billion, with a primary focus on mobile internet, life sciences, the green economy, and intelligent manufacturing.

Orient Capital is the professional capital operation platform under Orient Securities and a securities firm’s direct investment company approved by the China Securities Regulatory Commission. It has a registered capital of RMB 4 billion. Orient Capital primarily engages in equity investments in enterprises within China.

(Compiled by Zhang Yujie)