Interview with Zhu Yeqing, CEO of Novogene Health: Next Milestone After $20M Series B Funding

August 8, 2017—Zhejiang New Horizon Health Technology Co., Ltd. (hereinafter referred to as “New Horizon Health”) announced today that it has completed its Series B financing round. The round was led by Qiming Venture Partners, with participation from Legend Capital, SoftBank China, Pudu Technology, and other investors.

The company has raised $20 million in this financing round, with the funds primarily allocated to team building, research and development (R&D), and market channel expansion. The company plans to further expand its home-based early cancer screening service lines targeting high-incidence cancers in China, particularly in the gastrointestinal tract. Additionally, the company will actively invest in big data collection from the Chinese population and artificial intelligence (AI) to develop next-generation cancer early screening technologies that are more precise and convenient.

New Horizon Health, established in 2015, is an innovative biotechnology company specializing in home-based early screening and testing services for high-incidence cancers in China, with the ultimate goal of eradicating cancer. In 2016, the company completed its Series A financing round, led by investment firms including Legend Capital, SoftBank China, Pudu Technology, and Tianyi Laimei.

By integrating genetic testing and molecular diagnostic technologies with internet applications and big data platforms, New Horizon Health has established a home-based self-help health management system centered on early cancer screening. This approach facilitates early diagnosis and treatment of high-incidence cancers across China, effectively reducing cancer mortality and incidence rates, thereby optimizing the medical cost structure and ultimately achieving the goal of lowering overall healthcare costs.

New Horizon Health has currently developed Changweiqing, China’s first early colorectal cancer screening service based on fecal immunochemical test and DNA (FIT-DNA) technology.^®, enabling users to detect colorectal cancer and advanced adenomas larger than 1 centimeter in diameter through at-home sampling. This technology identifies precancerous lesions five years earlier than conventional blood-based cancer marker tests, allowing for curative treatment via simple colonoscopy.

Building on this foundation, the company launched a new service in 2017 for detecting Helicobacter pylori virulence factors associated with high gastric cancer risk—Changweining.^TM, and the combined high-risk screening service for gastrointestinal cancers—Changweiming^TM, establishing a comprehensive suite of at-home early screening products for gastrointestinal cancers.

Zhu Yeqing, Co-founder and CEO of New Horizon Health, told VCBeat: “China is a country with a high incidence of gastrointestinal cancers; four of the five most prevalent cancers are gastrointestinal cancers.”

“The dietary structure of the Chinese population is relatively complex, and the poor diet quality among the younger generation has led to an increasing trend of gastrointestinal diseases affecting younger individuals. ‘Currently, there are very few products on the market targeting digestive system cancers, representing a substantial market opportunity,’ said Zhu Yeqing.”

Unlike most third-party testing companies, New Horizon Health has adopted a relatively novel business model that does not rely on specialized medical infrastructure, allowing its products to be marketed directly to consumers. From the outset, New Horizon Health has placed significant emphasis on brand value. “Consumers may not know who we are, but they must know our products and understand what these products can do,” said Zhu Yeqing. “The influence of our products surpasses that of the company itself, which sets us apart from other companies.”

On this basis, the company has established close business partnerships with many leading health checkup institutions, insurance companies, and internet healthcare enterprises in China. Guided by the “Internet+” concept, it conducts publicity and promotion through online channels.

The company has currently established partnerships with multiple well-known enterprises, including iKang Guobin, Taikang Insurance, ZhongAn Insurance, WeDoctor, Almond Doctor, and Health 160, as well as several of China’s most renowned gastroenterology hospitals. Through these collaborations, it has built a “4D” sales channel encompassing health examination institutions, insurance companies, internet healthcare platforms, and hospital endpoints.

As of the first half of this year, New Horizon Health’s products have reached over one hundred physical examination institutions across China, demonstrating the strong effectiveness of its previously established market channels. Moving forward, the company will continue to adhere to its existing strategy while expanding channel coverage. Zhu Yeqing revealed, “In the second half of the year, we have secured partnerships with the most renowned gastroenterology hospitals in China, and we plan to increase this number to 50.”

It is understood that the company has established Beijing Nuoaan Medical Laboratory in Beijing and set up R&D centers in both Hangzhou and Beijing. To support its upcoming market expansion, the company will establish a new medical laboratory in South China.

The rise of artificial intelligence has brought new possibilities to cancer screening. With sufficiently large sample sizes, algorithms can calculate potential cancer-related information. Furthermore, the analysis of massive datasets facilitates the detection of deviations from biological baselines, thereby enabling the prediction of cancer risk.

“This represents the greatest significance of ‘genetic testing + artificial intelligence,’” stated Zhu Yeqing. Currently, New Horizon Health has established the largest fecal DNA sample bank in China and even globally. The company’s bioinformatics team is currently under development, and it plans to establish collaborations with several renowned artificial intelligence and bioinformatics companies in Silicon Valley.

Previously, New Horizon Health focused primarily on gastrointestinal cancers. However, as its technical team and market channels have gradually matured, the company is now planning to expand into other fields.

“While deepening our expertise in gastrointestinal cancer detection, we will launch home-based early screening services for cancers with high incidence among the Chinese population, particularly those affecting women,” Zhu Yeqing revealed to VCBeat. “Currently, we are in the process of developing related technologies for home-based early breast cancer screening.”