DNAnexus, Backed by WuXi AppTec, Files for IPO Following $58M Series E Round to Power Genomic Data Cloud Platform
The dramatic drop in gene sequencing costs has unlocked tremendous value for the fields of genetic monitoring and precision medicine. Meanwhile, the storage and analytical processing of genomic data have become a highly sought-after prize for numerous enterprises. In this era, those who control the data hold the initiative.
DNAnexus is such a company, standing out among numerous genetic data storage enterprises. It focuses on providing users with services for DNA data storage, sharing, analysis, and management. In January 2018, the company completed its Series E financing, raising a total of $58 million.
The Development of Genomic Sequencing Faces Three Major Challenges:
First, enormous disk space is required to store large-scale genomic data;
Second, sufficiently fast network transmission speeds are required to facilitate data sharing;
Third, the analysis and processing of genomic big data are expected to consume trillions of CPU hours.
Generally, research institutions or hospitals lack sufficient storage capacity to accommodate such vast volumes of data. Even if they have the capability to store it, there is no guarantee that the collected data will be immediately useful, which would incur substantial costs exceeding the benefits derived from data storage.
DNAnexus’s cloud storage capabilities fully meet the needs of hospitals and research institutions, enabling low-cost, high-speed data storage and retrieval through its storage hub.
To ensure rapid data upload to the cloud, DNAnexus offers multiple methods for uploading data. Users can upload via the command line, through the web platform, by fetching from a URL, or directly via the DNAnexus API.
The DNAnexus platform’s API supports any data format and Linux-based software. Through the DNAnexus platform, biopharmaceutical companies and their partners can securely investigate the relationship between patient health status and genetics in compliance with PHI requirements.
Biopharmaceutical companies can use DNAnexus to connect with healthcare partners, integrating patient phenotypic and genomic data to drive activities such as drug discovery and the selection of clinical trial participants.
In addition to supporting any data format, the platform’s API also enables end-to-end integration with LIMS, sequencing instruments, and tertiary analysis and reporting software. DNAnexus provides a global network that connects pharmaceutical companies with healthcare providers, hospitals, and clinical laboratories to accelerate the impact of genomics in clinical settings.
All uploaded data are encrypted in the cloud, and the entire transmission process is monitored and controlled. DNAnexus regards data security as one of its core objectives; under normal circumstances, users can have full confidence in the security of their genomic data.
DNAnexus’s services also address the third challenge in genomic sequencing. It provides 1,000 nodes capable of processing millions of objects simultaneously. Users can perform data analysis directly in the cloud without needing to download massive datasets. Furthermore, the entire process is fully encrypted.
DNAnexus partnered with Stanford University and Baylor College of Medicine, respectively, to launch a large-scale project demonstrating the platform’s value in processing massive genomic datasets. Across these two initiatives, DNAnexus processed 17,000 genomes, generating over 500 TB of genomic array data. The resulting data are accessible on the platform for subsequent analysis and data sharing.
Image source: DNAnexus official website
DNAnexus was founded in 2009 at Stanford University, located in Mountain View, San Francisco Bay Area. DNAnexus is a B2B genomic big data company that provides cloud platform services for the analysis and management of large-scale genomic data to genetics companies.
Richard Daly serves as the CEO of DNAnexus, bringing thirty years of management experience in healthcare and genomics. Previously, Daly founded companies in both the healthcare management and clinical laboratory sectors, and he served as the Chief Executive Officer of Visible Genetics (NASDAQ: VGIN), a pioneer in laboratory genetic sequencing and bioinformatics. He holds a Bachelor’s degree in Finance from New York University and an MBA from Harvard Business School.
Dr. George Asimenos, Chief Technology Officer, has been involved in the design and debugging of DNAnexus’s product line since the company’s inception, delivering it to customers worldwide. He is currently leading strategic initiatives to explore how DNAnexus technology can transcend the boundaries of traditional genomics. Dr. Asimenos holds a Ph.D. in Computer Science from Stanford University, where he participated in the Human Genome Sequencing Project. His research experience includes comparative metagenomics, silicon compilers for reconfigurable hardware, and elliptic curve cryptanalysis.
Dr. Andrew Carroll serves as Vice President of Science at DNAnexus. He helped operate the largest cloud genomics project, conducted in collaboration with the CHARGE Consortium and Baylor College of Medicine, which encompassed 20,000 genomes/exomes. To date, he has also led the largest plant genomics project, covering all 3,000 rice genomes from the 3,000 Rice Genomes Project. Through the work of the DNAnexus Science Team, he has carried out clinical and research projects involving SNP and indel calling, as well as analyses in personal and population genomics, gene expression, structural variation, genome assembly, tumor-normal pairing, computational chemistry, and image processing. He earned his Ph.D. from Stanford University, where his academic work focused on plant comparative genomics, proteomics, and machine learning.
DNAnexus Funding Status
From a financing perspective, leading firms such as GV and TPG Biotech enjoy high prominence in the investment sector, and their involvement itself carries substantial implied value.
In April 2015, WuXi AppTec’s sole investment of $15 million underscored the determination of Chinese technology companies to break into the genomics market.
The Series E financing completed in early 2018 was primarily used to research medical solutions and expand its development in the field of clinical medical research. This may imply DNAnexus's ambition to radiate from genetic data to various industries in precision medicine.
A key component of Microsoft’s Healthcare NExT initiative is Microsoft Genomics, marking a critical step in Microsoft’s entry into the field of precision medicine. DNAnexus will undoubtedly enable Microsoft to achieve twice the results with half the effort, promising strong future growth.
As genomic analysis is integrated into the preclinical and clinical phases, DNAnexus will provide a global network to facilitate the integrated analysis of genomic and clinical data, accelerating the discovery of how genetic variations impact clinical outcomes.
DNAnexus is built on Microsoft Azure and Amazon Web Services, featuring a scalable infrastructure that instantly meets diverse computational and data storage needs through a “single platform.” When performing analytical computations on DNAnexus, all data and computational tools are managed by the same system, eliminating redundant calculations, accelerating processing speed, and reducing energy costs.
For clinical researchers, the DNAnexus web environment provides a user-friendly interface. In addition to its robust statistical capabilities, the DNAnexus platform enables healthcare institutions to develop new analytical tools. Developers can leverage existing components from the DNAnexus app library or port existing applications and pipelines to the DNAnexus platform.
Judging from DNAnexus’s business operations, technological R&D, investor participation, and the overall development of the genomics sector, this future unicorn has limitless growth potential. As genetic testing technology becomes increasingly accessible to the general public, DNAnexus is poised to experience a new surge in business volume.