Burning Rock Announces Completion of $123 Million Series C Financing to Advance Global Leadership in Precision Oncology

On February 14, 2019, Burning Rock Biotech held the signing ceremony for its Series C financing round, officially announcing that it had secured a total of RMB 850 million. The round was led by GIC (Government of Singapore Investment Corporation), with participation from LeapFrog Investments, China Merchants Bank International, Lilly Asia Ventures, Sequoia Capital China, and Taihe Capital. This marks another significant financing round for Burning Rock Biotech following its RMB 300 million Series B raise in 2016, which was backed by Sequoia Capital, LeapFrog Investments, China Merchants Bank International, and Legend Star.

The proceeds from this financing round will be primarily allocated to increasing R&D investment in early screening and detection products, as well as expanding the scale of testing for patient populations. While continuing to lead China’s oncology genetic testing industry, the company aims to build an internationally leading brand in precision oncology, making genetic testing accessible to a broader population. Representatives of the investors in this round, including Mr. Wu Zhenqiang, Co-Head of North Asia at GIC’s Direct Investments Department; Mr. Zhao Jin, Founding Partner of JiFeng Capital; Mr. Rong Jing, Executive Director at CMB International Capital Management (Shenzhen) Co., Ltd.; and Mr. Shu Weilin, Partner at Taihe Capital, attended the signing ceremony.

From left to right: Mr. Shu Weilin, Mr. Wu Zhenqiang, Mr. Han Yusheng, Mr. Zhao Jin, Mr. Rong Jing

Burning Rock Biotech, founded in 2014, is dedicated to providing next-generation sequencing (NGS) products and services with the highest clinical value for precision oncology. Its current business spans three major sectors: testing for cancer patients, early cancer screening and detection, and a big-data ecosystem for tumor genomics. Burning Rock Biotech has consistently maintained an industry-leading position through its innovative technologies, clinically oriented product design, and accredited quality control systems.

Burning Rock Biotech’s commitment to compliance and the resulting achievements have consistently garnered widespread acclaim. In 2018, the Burning Rock Biotech–CTONG Joint Laboratory was among the first to pass the technical review for “High-Throughput Sequencing Laboratories” conducted by the National Clinical Laboratory Center of the National Health Commission. It became the only clinical laboratory in China to hold triple certification: the Chinese technical review for tumor high-throughput sequencing laboratories, along with US CLIA and CAP accreditations. Additionally, Burning Rock Biotech received approval for China’s first tumor NGS diagnostic kit, marking the issuance of the “first tumor NGS certificate” by the National Medical Products Administration.

At the signing ceremony, Mr. Han Yusheng, Founder and CEO of Burning Rock Biotech, stated, “Precision oncology is predicated on precise diagnostics. With the continuous launch of new targeted therapies and immunotherapies, NGS-based companion diagnostics have gradually become an essential and routine component of cancer treatment. Over the past three years, this market has maintained an annual growth rate exceeding 100%, a trend expected to continue for the next three foreseeable years. However, if we aim to significantly improve survival rates and quality of life, early screening and detection represent the fundamental solution. Leveraging advances in epigenetics and next-generation sequencing (NGS), Burning Rock initiated R&D into early screening and detection based on NGS-platform methylation assays more than two years ago, achieving phased milestones. Furthermore, given the inherent big-data nature of precision oncology diagnostics, Burning Rock, as an industry leader, has naturally cultivated a genomic big-data ecosystem that connects physicians and pharmaceutical companies, with the potential to include patients in the future. This new round of financing ensures that Burning Rock can maintain rapid simultaneous expansion across these three areas from a capital perspective. We appreciate the investors’ confidence.”

Mr. Zhu Yongqin, Chief Investment Officer of the Private Equity Division at GIC (Government of Singapore Investment Corporation), stated: “As a long-term and stable investor, we are optimistic about the future of precision medicine in oncology treatment and hope to collaborate with leading companies in the industry to provide better treatment solutions for patients. Since its establishment, Burning Rock Biotech has assembled an outstanding team with extensive experience in R&D capabilities, channel development, market education, and promotion. We hope that Burning Rock will continue to make steady progress and achieve new breakthroughs in cancer screening and diagnosis.”

Mr. Zhao Jin of JiFeng Capital expressed his consistent support for Burning Rock Biotech: “As an investment fund focused on the healthcare industry in the Chinese and U.S. markets, this marks JiFeng Capital’s third investment in Burning Rock Biotech, reflecting our confidence in the company’s future. Over the past few years, we have not only witnessed Burning Rock’s progress and outstanding achievements across various dimensions but also recognized the vision and capabilities of its founder, Mr. Han Yusheng, and his core team. The company they have built is a tumor NGS testing enterprise with immense potential and is poised for enduring vitality.”

Mr. Rong Jing of China Merchants Bank International affirmed the achievements Burning Rock Biotech has made in recent years: “Burning Rock possesses industry-leading technical capabilities, offers a diversified product portfolio closely aligned with clinical needs, and has consistently been at the forefront of implementing NGS testing in hospitals to benefit more patients. Currently, Burning Rock has set the highest industry standards across all aspects. As with its Series B financing, China Merchants Bank International quickly decided to invest in Burning Rock’s Series C round. We believe that Burning Rock will maintain its leadership and achieve world-class standards in advancing the development of precision oncology in China.”

Established in 2014, the company offers 32 oncology testing products, operates China’s first CLIA-certified NGS laboratory for ctDNA and tumor tissue analysis, and has launched the first tumor NGS testing kit approved by the NMPA. It provides LDT (Laboratory Developed Tests) and one-stop NGS testing services, and has established strategic partnerships with Agilent Technologies, PerkinElmer, Illumina, Qiagen, as well as numerous pharmaceutical companies.

Government of Singapore Investment Corporation (GIC) is a leading global investment firm. Established in 1981, GIC manages Singapore’s foreign reserves to generate sustainable long-term returns for the nation and its people. As a long-term value investor, GIC leverages its unique advantages to invest across a broad range of asset classes, including real estate, private equity, equities, and fixed income. In the private equity space, GIC collaborates with fund managers and corporate management teams to support business growth through investments in top-tier international companies, either via funds or direct investments. With over two decades of experience investing in emerging markets, GIC has a presence in more than 40 countries worldwide. Headquartered in Singapore, GIC operates offices in ten major financial centers globally and employs more than 1,500 professionals.

Lilly Asia Ventures (LAV), established in 2008, is a leading venture capital fund focused on investments in the life sciences and healthcare sectors, with offices in Shanghai, China; Hong Kong, China; and Silicon Valley, USA. LAV is committed to being a trusted partner for exceptional entrepreneurs seeking smart capital, co-creating outstanding companies that develop breakthrough products to combat diseases and improve human health.

Jifeng Capital is a healthcare investment firm established in 2015, with approximately $720 million in assets under management. It is dedicated to investing in companies in the Chinese and U.S. markets that boast exceptional management teams and visionary goals. Its investment focus spans biopharmaceuticals, medical devices, and medical diagnostics. Jifeng Capital works closely with its portfolio companies, providing not only financial support but also assistance in international business expansion, identifying overseas partners, and actively supporting market planning and team development to facilitate product approvals and market access.

CMB International Capital Limited (“CMB International”) is a comprehensive, specialized financial services institution headquartered in Hong Kong, deeply rooted in mainland China, and oriented toward the global market. As a wholly-owned subsidiary of China Merchants Bank Co., Ltd., CMB International and its subsidiaries leverage the synergies between the Group’s domestic and overseas operations, relying on the parent bank’s robust strength and outstanding social reputation to actively implement a diversified business strategy. It has established a comprehensive presence across business segments including corporate finance, asset management, wealth management, equities, and structured finance.

Sequoia Capital is a globally renowned venture capital firm. Founded in 1972, it manages nearly 30 funds with over $10 billion in total assets under management. It has invested in numerous prominent technology companies, including Google, Apple Inc., YouTube, and Oracle.