Lianchuan Bio: A Tech Pioneer with Core Gene Capture Capabilities Targets Precision Medicine Market

Lianchuan Bio, founded in 2006, is a biotechnology company focused on genomic research and application development. It is also one of the few solution providers in China positioned in the mid-to-upstream segments of the industry.

To sequence DNA, the target DNA must first be identified. This step typically requires the use of gene chips, which employ nucleic acid probes on the chip to identify specific DNA sequences.

There are two methods for fabricating gene chips: in situ synthesis and spot deposition. Among these, in situ synthesis offers the highest accuracy but also entails the greatest complexity.

Currently, only a few companies worldwide possess in situ synthesis technology. Most of these companies are foreign enterprises, such as Affymetrix, Agilent, and NimbleGen. LC Sciences is a rare domestic enterprise among them.

“Lianchuan Bio is the only company I have ever worked for. This is my first job.”。“Lang Qiulei, co-founder and chairman of LC Sciences, told VCBeat.”

In 2004, while studying at Zhejiang University, Lang Qiulei went to the University of Houston in the United States as a visiting scholar. Gene chip technology was her doctoral research topic. In the United States, Lang QiuleiEncountered in the field of biochips"The Legendary Couple"—Professor Zhou Xiaochuan and Professor Gao Xiaolian.The two professors have established two companies in the United States, one of which is LC Sciences (the U.S. headquarters of Lianchuan Bio).

Many researchers choose to outsource a portion of their services to other technically capable companies, thereby saving time and effort.At that time, these service providers were exclusively foreign companies.

DespiteAt that time, next-generation sequencing technology was not yet available, but through Lianchuan Bio in the United States, they identified potential demand within China’s technology services market.“Bringing chip technology and sequencing technology to China to provide scientific research services.” The establishment of Lianchuan Bio in China seemed like a natural progression.

Lianchuan Bio positions itself as a service provider in the mid-to-upstream sector.“Such positioning is actually linked to Lianchuan’s own genetic makeup,” said Lang Qiulei.

Lianchuan Biology’s core competency lies in R&D innovation, with its most critical technology being in situ synthesis chip technology. While the midstream segment often relies on capital and market forces for growth, Lianchuan Biology is more distinctly characterized by its scientific research capabilities.

In contrast, LC-Bio does not hold an absolute advantage in the midstream segment. Instead, it is better positioned to secure a technological high ground.

Many new technologies in the healthcare industry gradually emerge from scientific research. When a technology reaches a certain stage of development, it inevitably moves into the mass market. “2011 marked the turning point for gene technology to enter the mainstream. At that time, we recognized the potential for gene technology to penetrate both the consumer and clinical markets.”

Previously, LC-Bio typically provided services to researchers or institutions.In 2011, Lianchuan began to lay out the consumer and clinical markets. This strategic adjustment was made by Lang Qiuleireferred to as“Second Entrepreneurship”

In 2012, the company completed the research and development of its product’s underlying technology. In 2015, afterAfter two years of calculation and validation, they deemed the product feasible.In 2016, the company officially launched its clinical and consumer products.

Among Lianchuan Biology’s medical device products, four have obtained CE certification: the Breast Cancer BRCA1 & BRCA2 Gene Screening Kit, the 50-Tumor Hotspot Genes Kit, the Lung Cancer Tumor Gene Mutation Detection Kit, and the Mitochondrial Full-Length Genome Kit.

Health management products include 97 health risk assessments, 17 tumor susceptibility gene tests (16 for men), 47 rare genetic disease tests, 33 tests for middle-aged and elderly diseases, over 200 personalized lifestyle guidance items, and 38 gut microbiome tests.

Lang Qiulei stated that although the coverage of genetic testing in the consumer market has expanded compared to before, its practical implementation remains less than ideal. Testing institutions often provide consumers with only a report, failing to offer effective intervention measures. This lack of follow-through leaves consumer-grade testing products in a precarious, ungrounded position.

“For consumers, genetic testing products are useful but not essential. If”Without follow-up interventions, it is difficult to unlock the value of the product.“Lang Qiulei revealed that the company has established close collaborations with several health management organizations to jointly explore and advance intervention services for testing.”

She believes that, as a service provider for a health management organization, it is not enough to simply issue a report; instead, one should consider how to help clients capture consumers’ appetites.。“This is a win-win situation for us,” she said.

In addition to these two product categories, the company has retained its original technology services while introducing customized service offerings to meet the precise needs of its clients.

The existing scientific research services can provide the company with a stable cash flow, while also keeping it engaged with cutting-edge technologies.

Lang QiuleiDisclosed to VCBeat, the simultaneous strategic deployment across four fronts reflects both confidence in R&D capabilities and a commitment to corporate development.“Short-, Medium-, and Long-Term” Plans.

Although these products serve different industries and sectors, they all originate from the same platform. Consequently, they do not incur excessive R&D costs for the company.

Medical device products must obtain approval from the China Food and Drug Administration (CFDA) before entering the market, a process that typically takes 3–4 years. Prior to securing CFDA approval, these medical device products cannot generate any market revenue.

However, health management products do not require certification, allowing them to enter the market ahead of medical device products, which must obtain certification first.

Applying for product certification for a medical device typically incurs costs amounting to tens of millions. If Lianchuan were to seek certification for all its products, it would represent a substantial financial burden.

But Lang Qiulei believes that Lianchuan Bio possesses the technical capability to compete. Therefore, there is no reason for the company to abandon such a large market.

Consequently, Lianchuan Bio opted for a joint application strategy, partnering with third parties that possessed distribution channels, while positioning itself as the technology provider.

“This is the optimal form of technology transfer, enabling simultaneous strategic positioning across three fronts,” Lang Qiulei told VCBeat.

Lang Qiulei revealed that in the second half of last year, as soon as the product wasIts launch generated millions in profit for the company, even without any marketing efforts. During this period, the in situ synthesis capture market has consistently beenForeign companies hold a monopoly. However, based on current growth trends, the company is confident in gradually reclaiming market share from these foreign competitors.

Currently, the company's product portfolio is largely in place; the next step is to expand its distribution channels.

In terms of the clinical market, the company plans to submit applications for certification of its third-party medical laboratory and a liquid biopsy product to the CFDA in the near future.

In terms of health management, the company plans to establish a holding company responsible for product operations.

Lang QiuleiIndicates:“Sometimes our professional expertise can actually constrain operational thinking.”, we therefore aim to attract more talent with internet-oriented and operational mindsets, enabling professionals to focus on their areas of expertise.”

The company secured angel funding in July 2016, was officially listed on the New Third Board in May this year, and is about to launch its next round of financing.