Grail-like Chinese Firm Singlera Genomics Completes $60 Million Series A+ Financing to Accelerate Cancer Early Detection and Diagnostic Product Launches
On March 28, 2018, Singlera Genomics announced the successful completion of its $60 million Series A+ financing round. The round was led by Sinopharm Capital and Jingxu Venture Capital, with participation from both new and existing investors, including Pioneer Healthcare Investments, Jointown Pharmaceutical Group, and Lilly Asia Ventures.
Singlera GENOMICS has established R&D and operational centers in Shanghai, China, and San Diego, California, USA. The company specializes in the development of non-invasive genetic testing for early-stage cancer, dedicated to providing patients with early, precise, and comprehensive diagnostic and therapeutic information through early detection and precision diagnosis of cancer, thereby improving clinical outcomes for cancer patients.
Singlera GENOMICS has developed a series of proprietary technologies based on cell-free DNA (cfDNA) analysis. Its main products and services cover tumor screening, diagnosis, and personalized treatment, with remarkable progress made particularly in the detection of circulating tumor DNA (ctDNA) and early cancer diagnosis using high-throughput methylation sequencing technology.
This round of financing will help Singlera GENOMICS expand the research and development and commercialization of its non-invasive genetic testing, accelerating the clinical validation and market launch of its early cancer screening and diagnostic products. Singlera GENOMICS plans to further expand its research facilities, leverage technologies such as TiTanSeq™ and MONOD™ to develop new product lines, and accelerate solutions for the early detection, diagnosis, and personalized treatment of cancer.
Professor Gao Yuan, Chairman of Singlera Genomics, stated: "We are grateful for the continued support of our existing investors and welcome new investors to join the Singlera family. Our proprietary technologies, such as TiTanSeq™ and MONOD™, can significantly enhance the accuracy of early cancer detection and substantially improve patients' survival prospects. This successful financing provides us with ample resources to continue accelerating our innovative research and development initiatives, solidifying Singlera Genomics' position as an international leader in the development of early cancer detection solutions."
“We are delighted to continue our partnership with Singlera GENOMICS, supporting the company’s ongoing growth in the field of early cancer detection,” said Luo Fei, Managing Partner at Sinovation Capital. “Singlera is transforming the paradigm of cancer testing and has the potential to drive breakthrough advancements in oncology diagnosis and treatment.”
Qian Tingzhi, Managing Partner at Jingxu Venture Capital, stated, “We were deeply impressed by Singlera’s management team, its patented technologies, and its commitment to the research and development of early cancer detection. Through this financing round, we believe Singlera will accelerate its R&D and business development.”
In August 2016, Singlera GENOMICS secured $20 million in Series A financing, led by Lilly Asia Ventures. Two years on, the company has re-emerged into the spotlight. What developments have taken place during this period, and what new innovations are they bringing to the table? With these questions in mind, VCBeat conducted an exclusive interview with Gao Yuan, Chairman of Singlera GENOMICS, and Zhang Jiangli, CEO, to discuss the company’s goals and aspirations.
VCBeat: First, congratulations to Singlera on completing this round of financing. What have been your key initiatives since Singlera completed its Series A financing in 2016?
Singlera GENOMICS:Since the completion of our last funding round, in addition to the continuous development and launch of a series of tumor companion diagnostics and liquid biopsy products, we have primarily focused on initiating and advancing research in early cancer screening.Since Professor Zhang Kun published the application of methylation sequencing technology for early cancer screening in Nature Genetics in March 2016, we have collaborated with hospitals in China to jointly develop and validate several projects for early cancer screening and diagnosis. Related research findings will be reported successively in 2018.
VCBeat: There are many excellent gene testing companies in China that specialize in oncology, but their market positioning varies slightly. Genetron Health focuses on earlier-stage cancer screening, while Burning Rock Biotech aims to cover every aspect of cancer detection. How does Singlera GENOMICS position itself?
Singlera GENOMICS:Singlera GENOMICS is dedicated to advancing precision medicine, with a focus on early cancer screening. We provide testing and services across all segments of precision oncology; however, our R&D efforts and future corporate development are centered on developing products for early cancer screening and diagnosis based on our proprietary methylation sequencing technology.
VCBeat: How does the positioning of this funding round differ from the previous one? What areas will the proceeds be allocated to, and what are your future development directions and strategic plans?
Singlera GENOMICS:The primary objective of this funding round is to strengthen the research and development, validation, and commercialization of our early cancer screening and diagnostic products. Our developed products are at the forefront globally in terms of both technology and performance. Building on large-sample validation studies, we will not only initiate the relevant regulatory registration process in China but are also actively preparing for FDA registration.
VCBeat: In the second half of 2016, regulatory authorities accepted the first NGS-based tumor testing kit for review, after which nearly all companies initiated their submission processes. How has Singlera GENOMICS progressed in this regard?
Singlera GENOMICS:Our companion diagnostic products are under regulatory review, and our cancer early screening products are in the preparation stage.
VCBeat: At this juncture, some companies are also expanding their sales teams. Do you consider this a preparatory phase for market competition? How is Singlera GENOMICS preparing to respond?
Singlera GENOMICS:Market sales are important, but the research and development of products with core competitiveness and differentiation is even more critical. Of course, no matter how excellent the products and services are, a capable and effective sales and marketing team is essential to deliver information to our users as quickly as possible. Therefore, we have already initiated relevant strategic deployments since 2017.
VCBeat: Compared to NIPT, tumor testing represents a larger market. However, due to the complexity of cancer, developing corresponding products is more challenging. This has also led to waning enthusiasm among some physicians after using these products for a period, as they are more accustomed to qualitative judgments such as “positive” or “negative,” whereas NGS-based testing provides probabilistic results. What are your views on this, and how can we shift this perception?
Singlera GENOMICS:The application of NGS in precision oncology is a long-term and gradual process that involves multiple stages, including basic research and development, clinical validation, and product finalization. Rushing to market with immature products and services in pursuit of short-term sales reflects a shortsighted approach that could even undermine the growth prospects of this rapidly evolving market and erode confidence in new technologies and applications. Adhering to scientific principles, we are committed to rigorously conducting our own product R&D and validation, aiming to contribute to the orderly development of the precision oncology market.
VCBeat: There are many domestic companies in the field of liquid biopsy for oncology, with numerous outstanding enterprises such as Singlera GENOMICS, Genecast Biotechnology, Geneseeq Technology, and Yuanma Gene. However, very few of these companies have achieved profitability to date. What do you believe is the reason? Is it due to excessive R&D investment, or because their products have not been successfully commercialized?
Singlera GENOMICS:For a company like ours, driven by technological innovation and R&D, short-term profitability is not our primary objective. The development and validation of new technologies and products require substantial investments of time and capital. We are more committed to leveraging our efforts and technological innovations to launch revolutionary products in the future, thereby better serving individuals with suboptimal health, patients, and physicians, which will ultimately deliver greater long-term returns to our investors.
Regulatory approval is a prerequisite for product commercialization. However, given the breakthrough nature of new products, we hope the government will also greenlight the clinical application of novel technologies through mechanisms such as Laboratory Developed Tests (LDTs), thereby accelerating market entry and benefiting patients.
VCBeat: What was the original intention behind your team’s startup journey, and how has your mindset evolved since then?
Singlera GENOMICS:Our team’s original motivation for starting the business was to leverage our technology and products to help physicians and patients achieve early detection, early diagnosis, precise treatment, and speedy recovery. While the market continues to evolve and our company keeps growing, our founding mission and vision remain unchanged.