Shihe Gene Completes Hundreds of Millions RMB Financing to Continue Leading in Tumor NGS and Liquid Biopsy

VCBeat (WeChat ID: vcbeat) has exclusively learned that Nanjing Shihe Gene Biotechnology Co., Ltd. recently completed a new round of financing amounting to hundreds of millions of RMB. Through this round, the company successfully introduced a group of well-known investment institutions in China’s healthcare sector, including Xingzheng Innovation Capital (a wholly-owned private equity fund subsidiary of Industrial Securities), Boyuan Hongsheng, Huatai Ruihe Healthcare Industry Fund, and Cowin Capital. Hopu Investment served as the exclusive financial advisor for this financing round.

Dr. Shao Yang, Founder and CEO of Geneseeq, stated, “We are delighted that Geneseeq has received such positive recognition and response in the capital market. We extend our gratitude to our new investment partners for their acknowledgment of Geneseeq’s team, vision, and industry standing, as well as to our shareholders, Beilu Pharmaceutical and Orient Asset Management, for their continued support. Over the past four years, as a leading enterprise in China’s NGS and liquid biopsy sectors, Geneseeq has achieved widely recognized accomplishments. As an oncology precision medicine company with significant value and strong IPO potential, this round of financing provides robust financial support for our R&D innovation, market expansion, talent acquisition, and strategic layout. Upholding the spirit of precision, innovation, pragmatism, and efficiency, we will continue to forge ahead on the path of precision medicine in China, fulfilling our mission with distinction.”

Shihe Gene was founded in Toronto, Canada, in 2008. After nearly a decade of accumulation, Shihe Gene has developed into a leading enterprise in the field of tumor NGS and ctDNA in China. As an R&D-driven company, Shihe Gene is committed to providing clinically needed precise tumor detection solutions through technological innovation.

Currently, Geneseeq has accumulated a database of over 60,000 Chinese tumor NGS samples, including more than 30,000 liquid biopsy samples, ranking first in China. Geneseeq holds seven granted core invention patents, has established over 400 optimized technical processes, and is engaged in more than 300 collaborative research projects, maintaining a leading position in the field.

Geneseeq adheres to the principle of “Standardized Practice, Quality Excellence.” Internationally, in March 2017, Geneseeq received the Next-Generation Sequencing (NGS) Clinical Laboratory Accreditation Certificate officially issued by the College of American Pathologists (CAP).This marks Nanjing Shihe Gene as the first NGS-based clinical oncology testing laboratory in China’s precision oncology sector to achieve flawless CAP accreditation.Meanwhile, Geneseeq successfully completed all items in the world’s first external quality assessment (PT) for high-throughput sequencing capabilities, achieving the highest detection sensitivity (1%). In China, Geneseeq passed quality assessments for 21 items with outstanding results between 2015 and 2017, covering all oncology-related fields, including ctDNA, tumor somatic mutations, and tumor germline mutations.Furthermore, the “Lung Cancer Targeted Drug Gene Mutation Detection Kit (High-Throughput Sequencing Method),” independently developed by Shihe Gene, has been granted special approval for innovative medical devices by the China Food and Drug Administration (CFDA) and entered the green channel.

Nanjing Shihe Gene Biotechnology Co., Ltd. adheres to the principle of “Science First, Patients Foremost.”In the field of liquid biopsy, Geneseeq’s independently developed ATG-Seq system has elevated the detection sensitivity of ctDNA to a level of 0.03%.This will enable its liquid biopsy product portfolio to cover the entire lifecycle of cancer patients, including auxiliary diagnosis for early- and mid-stage cancer, detection of postoperative residual disease, and monitoring of recurrence. In the field of tumor immunotherapy, Nanjing Shihe Gene Biotechnology Co., Ltd. has independently developed assays for microsatellite instability (MSI), deficient DNA mismatch repair (dMMR), and tumor mutational burden (TMB) based on high-throughput sequencing, leveraging the accumulation of real-world sample data over the past three years and validation through clinical trials. This has established its first-mover advantage in the field of tumor immunotherapy testing.

Nanjing Shihe Gene Biotechnology Co., Ltd. advocates the principle of “academic translation and win-win cooperation.” The company has collaborated with domestic and international experts and scholars to conduct more than 300 scientific research projects, and has independently or jointly published articles with a cumulative impact factor exceeding 400.In 2016, Geneseeq leveraged its accumulated strengths to publish 16 SCI papers and international conference abstracts in collaboration with domestic and international experts within a single year, with nearly 20 additional manuscripts under review, including submissions to Science, Clinical Cancer Research (CCR), Leukemia, and Journal of Thoracic Oncology (JTO).

Tan Wen, Deputy General Manager of Xingzheng Innovation Capital, stated, “We have been focusing on liquid biopsy technology for tumors since 2015. This technology has disrupted traditional tissue biopsy methods and brought transformative changes to cancer treatment. As a leading enterprise in the liquid biopsy industry, Geneseeq and Shao Bo’s team have demonstrated outstanding professional expertise, a spirit of forging ahead, and mature management capabilities. Xingzheng Innovation Capital is also honored to collaborate with Geneseeq in jointly promoting the leapfrog development of personalized precision oncology treatment in China.”

“A partner at Boyuan Hongsheng Fund stated, ‘As the next breakthrough point in the field of genetics, the application of ctDNA in oncology is in a stage of rapid development. As a leading enterprise in this sector, Nanjing Shihe Gene Biotechnology Co., Ltd. has demonstrated exceptional performance in marketization and product R&D capabilities. We are honored to collaborate with Nanjing Shihe Gene.’”

Zhang Quanyuan, CEO of Huatai Ruihe Healthcare Industry Fund, stated, “With the widespread clinical adoption of targeted therapies and gene sequencing, the market for precision diagnostics and tumor liquid biopsy boasts broad development prospects. The team at Nanjing Shihe Gene Biotechnology Co., Ltd. has cultivated deep expertise in the industry over many years, backed by a solid academic foundation, sustained R&D capabilities, and profound industry insights. It is a rare high-quality investment target with the potential to become a true market leader in the field of tumor liquid biopsy. We look forward to working closely with the company to advance precision oncology and deliver tangible solutions for clinical patients.”

Wang Yang, Managing Director of Cowin Capital, stated, “Genetic testing and precision medicine are undoubtedly among the fastest-growing blue-ocean markets in the healthcare sector. Cowin Capital has made extensive investments across the upstream and downstream segments of this industry chain. Nanjing Shihe Gene Biotechnology Co., Ltd. possesses leading liquid biopsy technology and has rich experience in tumor-related gene sequencing, diagnosis, medication guidance, and prognosis monitoring. I am also deeply impressed by the team’s market development capabilities, making it highly likely to become the No. 1 player in this niche market. We will contribute our resources in the fields of genetic testing and anti-tumor therapies to support Shihe Gene’s rapid growth.”

Ding Yameng, Founding Partner of Haoyue Capital, stated: “Recently, the downstream service market for genetic testing in China has been booming, with cancer genetic testing emerging as a powerful new force. Compared to the reproductive health sector, the cancer gene sequencing market holds even greater potential and features relatively higher technical barriers. Nanjing Shihe Gene Biotechnology Co., Ltd. boasts strong independent R&D capabilities, consistently stays at the international forefront of technology, and has experienced explosive growth in performance. In just a few short years, it has risen to become the leading enterprise in China’s clinical oncology NGS and ctDNA fields, with significant competitive moats now evident. We are highly optimistic about Shihe Gene’s development model driven by the dual engines of ‘technology + market’ and believe it has the potential to grow into a company valued at tens or even hundreds of billions.”