HaploX Announces Completion of Hundreds of Millions RMB Series B Financing Led by Shenzhen Capital Group

On June 28, 2018, according to VCBeat, Shenzhen Halomics Biotechnology Co., Ltd. (hereinafter referred to as "Halomics") officially announced the completion of its Series B financing round. Led by Shenzhen Capital Group, this round raised hundreds of millions of RMB. This follows the successful completion of its RMB 210 million Series A+ round on December 28, 2017.

HaploX, founded in 2014, is a leading national high-tech enterprise specializing in precision medicine and genomic big data. The company is dedicated to integrating cutting-edge emerging technologies such as liquid biopsy, gene sequencing, artificial intelligence, and big data, with a focus on comprehensive diagnosis and treatment management for cancer patients, enhancing quality of life through technological innovation.

Founder Xu Mingyan earned his master’s degree in radiopharmaceutical chemistry from Beijing Normal University and subsequently pursued a Ph.D. in biomedical sciences in the United States, specializing in sequencing technologies and the development of sequencers. After graduation, he joined the San Francisco-based tech startup Cambrian Genomics, where he was responsible for the development of sequencing technologies and instruments. His professional experience in San Francisco exposed him to the entrepreneurial spirit and passion of Silicon Valley, while also revealing the promising prospects for the development of gene sequencing in China.

During his doctoral studies in the United States, Xu Mingyan gained extensive exposure to next-generation sequencing (NGS) technology. Working in his advisor Jeremy S. Edwards’ gene sequencing laboratory, he collaborated with George M. Church’s team at Harvard University to complete a series of R&D projects on genetic testing technologies and NGS platforms. This experience provided Xu Mingyan with a deeper understanding and insight into gene sequencing technology.

During his more than a year working in the genomics field in San Francisco, he was deeply impacted by the surrounding entrepreneurial atmosphere, combined with his own judgment on the future development of the sequencing technology industry.

In 2014, he and his wife gave up their newly obtained H-1B visas (work visas for high-tech professionals) and resolutely returned to China. Together with his high school classmates Chen Shifu and Fang Wen, they founded Helios Genomics Biotechnology Co., Ltd. in Shenzhen, diving into the contemporary wave of entrepreneurship.

In 2014, China’s gene sequencing industry was still an emerging, nascent market. Although the industry was in its early stages and more than 200 companies carried “gene” or “gene-related” labels, fewer than 20 of them possessed genuine sequencing expertise and R&D capabilities. In the even more challenging field of ctDNA sequencing, participants were exceedingly scarce.

On the one hand, there is an urgent need for technological transformation in the diagnosis and treatment of tumors; on the other hand, the era of clinical application of genetic testing has already begun. Xu Mingyan ultimately chose tumor gene sequencing as his first entrepreneurial venture.

In the field of oncology, particularly the combination of liquid biopsy and next-generation sequencing (NGS), has emerged as the most promising approach to precision cancer medicine. However, substantial investment in research and development is still required before these technologies can be maturely applied in clinical settings. “During this process, differentiation will emerge among all sequencing companies. Only those possessing core technologies and competitive advantages, and capable of continuous R&D and technological innovation, will secure a dominant position in future competition,” mentioned Xu Mingyan in another interview.

Prior to the advent of next-generation sequencing (NGS) technology, all genetic testing was limited to identifying only a few, dozens, hundreds, or even millions of specific sites out of the approximately 3 billion base pairs in the human genome. In contrast, gene sequencing technology enables the comprehensive scanning of all 3 billion base pairs in a single run, with high efficiency and at a significantly lower cost.

ctDNA, or circulating tumor DNA, originates from dead cancer cells that have entered the bloodstream. Its concentration in blood is extremely low, typically ranging from 0.1% to 1%. Such low levels are undetectable by conventional next-generation sequencing (NGS) technologies, which have a limit of detection above 1%. It is also nearly impossible to detect such trace amounts using other non-sequencing methods, with concentrations being even lower in earlier disease stages.

Without the capability for ultra-trace analysis, it is nearly impossible to perform prediction and screening for many types of cancer. Therefore, the homepage of Hiprolas features the tagline: “Expert in Ultra-Trace Liquid Biopsy for Tumors.”

Guided by patient value, HaploX’s business scope encompasses cancer risk assessment, early screening, clinical medication guidance, therapeutic efficacy evaluation and real-time monitoring, drug resistance analysis, and recurrence surveillance. This enables dynamic, whole-course management of cancer, provides a reliable basis for personalized medication, and maximizes patient benefits.

In July 2015, HaploX, in collaboration with Shenzhen People’s Hospital, launched the “Ten-Thousand Person Cancer Genome Sequencing Initiative.” Leveraging genomic sequencing, the initiative facilitates non-invasive early tumor detection, personalized medication guidance, and drug resistance assessment for individuals at high risk of cancer and cancer patients. Its objective is to establish a cancer genomic database specific to the Chinese population, thereby laying the foundation for precision oncology in China.

The program provides free testing for high-risk populations and cancer patients through a screening-based enrollment approach. To date, Hyprogen has completed genomic sequencing for nearly 1,000 tumor samples.

As of March 2017, Helios Genomics had enrolled more than 6,000 samples, sourced from research collaborations, genetic screening of healthy individuals, and patients at initial diagnosis, with drug resistance, or experiencing relapse. Through big data analytics, China-specific variant information was identified, a comprehensive baseline dataset was established, and services were provided for health and clinical genetic testing.

Currently, dozens of large Grade A tertiary cancer hospitals across China have joined the program.

Furthermore, following the “Ten-Thousand-Person Cancer Genome Sequencing Project,” HaploX has successively launched multiple scientific research collaboration initiatives, including the “Green Lung Project,” the “Gut Health Project,” and “RNA Sequencing Analysis.”

Among these initiatives, the “Green Lung Project” and the “Gut Health Project” aim to establish large-scale genetic databases for lung cancer and colorectal cancer, respectively, each comprising more than 100,000 cases from the Chinese population. These projects provide a whole-course disease management model that includes early screening and diagnosis, prognostic assessment, postoperative recurrence monitoring, personalized medication guidance, treatment efficacy evaluation, and drug resistance analysis, thereby laying a solid foundation for the implementation of precision medicine in China.

With the widespread application of NGS technology, cancer-related transcriptomics data are increasing day by day. "RNA sequencing analysis" mainly studies the changes in cancer gene expression patterns and explores molecular markers related to cancer. The cooperating units of this plan include the Chinese Academy of Sciences and Shenzhen University.

Since its establishment in 2014, the company has garnered favor from numerous renowned domestic and international investment institutions, including Pangu Ventures, SoftBank China Capital, Youxuan Capital, Kexin Capital, Shanlan Capital, and Jianjin Capital. Its business now covers more than 300 Grade-A tertiary hospitals and over 1,000 clinical partner physicians, with sales revenue reaching dozens of times that of the same period last year.

It is reported that Haplox has introduced Illumina NovaSeq 6000, HiSeq X Ten, and NextSeq 500/550 series sequencing platforms, as well as digital PCR platforms, to build HGC into the world’s second-largest gene sequencing center. Dr. Mingyan Xu, Founder and CEO, together with his mentor and global gene sequencing pioneer Jeremy S. Edwards, jointly lead the two major R&D centers in China and the United States.

Currently, HaploX has completed its multi-center global layout, encompassing its Shenzhen R&D headquarters, third-party medical laboratory, GMP-compliant production facilities, U.S. R&D center, HaploX Genomics Center, and the Shangrao International Precision Medicine and Health Industrial Park.