Yuanma Gene Files IPO Prospectus: Accelerating Clinical Adoption of Genetic Testing Through Hospital-Integrated Solutions

Yuanma Genomics, established in 2014, is a high-tech enterprise integrating the research and development of new precision medicine technologies, product commercialization, and genetic testing services. The founding team holds over 20 technical patents and has participated in or led multiple national “863” and “973” programs, maintaining a leading position among domestic and international peers. The company has built internationally advanced platforms for molecular medical diagnostics and bioinformatics analysis, obtained approval as a medical laboratory, and achieved perfect scores in all external quality assessment programs organized by the National Health and Family Planning Commission. Yuanma Genomics has collaborated with renowned medical institutions in China to establish precision medicine centers that closely integrate industry, academia, research, and clinical application, providing systematic solutions and innovative products for oncology precision medicine.

Tian Geng told VCBeat (WeChat ID: vcbeat), “Applying genomics technology to clinical practice to provide users with more reliable precision medicine solutions is exactly what Yuanma Gene aims to achieve.”

For the three years after leaving BGI, Tian Geng has been engaged in scientific research at Tsinghua University. One day, he suddenly received a phone call from a colleague, who said that his teacher had fallen ill with stage IV lung cancer. Given the patient’s advanced age of 72, clinical recommendations favored conservative treatment. However, as targeted therapies for lung cancer had become relatively mature by then, the colleague hoped to identify suitable targeted drugs through genetic testing.

With a tentative approach, Tian Geng performed gene sequencing on blood samples sent by a colleague, using technology newly developed by his team. Encouragingly, the test result was positive, and the patient’s condition was well controlled after treatment. Within one month, both his physical and mental health improved significantly. Clinical examinations revealed that the tumor had essentially disappeared; the originally large mass was now barely detectable. This outcome was highly inspiring for the team. Tian Geng recalled, “Everyone felt that after years of scientific research, we were finally able to translate our findings into clinical practice.”

“My doctoral specialization was in cancer genomics, but at the time, the cost of conducting research in this field was extremely high, let alone its clinical application,” Tian Geng told a reporter from VCBeat (WeChat ID: vcbeat). In 2005, next-generation sequencing (NGS) technology had just emerged, and performing a single cancer genome sequencing using this technology cost tens of millions of RMB, making clinical use virtually impossible. However, sequencing costs have since declined year by year, reaching a level affordable for the general public. Coupled with years of research, Tian Geng has gained confidence in his technology and believes that it should be commercialized.

While conducting research at Tsinghua University, Tian Geng also worked at Peking Union Medical College Hospital (PUMCH). Although PUMCH had its own sequencing center, the hospital’s various departments operated relatively independently, and there was no suitable personnel to manage the systematic operation of the sequencing center. Furthermore, medical education in genetics and genomics at the medical school was relatively lagging. Consequently, the operation of the sequencing center posed significant challenges for the hospital, leaving a substantial gap in this area. Driven by the vision of integrating technology into clinical practice, Tian Geng resigned from the School of Medicine at Tsinghua University to embark on full-time entrepreneurship. He founded “Geneseeq,” focusing on the popularization and development of “precision medicine” technologies and concepts in China.

Unlike other genetic testing companies with a clinical layout, Yuanma Gene not only has its own third-party clinical laboratory but also chooses to co-establish testing laboratories with hospitals. It provides sequencing personnel, sequencing equipment, laboratory renovation, and support for testing items, assisting hospitals in completing genetic testing within their premises.

Ultimately, the management of any disease culminates in hospital care; if technology becomes detached from clinical practice, it ultimately loses its significance. If hospitals lack sequencing capabilities, leveraging third-party testing institutions becomes imperative for integrating genomic sequencing into disease diagnosis and treatment. However, this approach is not only inconvenient but also prone to gaps and discrepancies in coordination. By assisting hospitals in establishing their own laboratories, we can more directly address clinical needs, facilitate the integration of scientific research with clinical applications, and truly advance the clinical implementation of genetic testing, ensuring its practical application in patient care.

“At present, our primary clients are major hospitals in second- and third-tier cities,” Tian Geng told VCBeat (WeChat: vcbeat). Compared with core hospitals in Beijing, Shanghai, and Guangzhou, the market competition in second- and third-tier cities is relatively moderate, making it easier to establish long-term, stable partnerships and offering greater feasibility.

Most tumors result from a combination of factors, including lifestyle and genetics. Screening is the first step in confirming a clinical diagnosis. Tumors are characterized by aneuploidy, wherein cells have an extra or missing chromosome, or gene segments are translocated to another chromosome. These features can serve as indicators for tumor screening.

Based on this principle, Yuanma Genomics provides precision oncology testing solutions to healthcare institutions. In addition to the well-known BRCA1 “Angelina Jolie gene,” its panels cover 82 cancer-related genes, encompassing all tumor testing items recommended by the U.S. National Comprehensive Cancer Network (NCCN). Furthermore, Yuanma Genomics offers companion diagnostic testing for cancer therapy, including a 9-gene panel for lung cancer, a 38-gene panel for chemotherapy and targeted therapy agents that covers all targets currently in U.S. clinical trials, a 143-gene panel targeting drugs in current clinical trial phases, and a comprehensive 443-gene panel that includes all genes potentially associated with cancer. Moreover, Yuanma Genomics has launched whole-genome and whole-exome sequencing solutions, making it the most comprehensive provider of precision oncology testing solutions available on the market.

In addition to its portfolio of precision oncology products, Yuanma Gene is expanding its product lines into comprehensive genomic health management and premarital and prenatal genetic screening.

In addition to establishing a comprehensive product portfolio, Yuanma Gene has also made significant efforts in data interpretation. By collaborating with the Beijing Computing Center, the company has localized a vast amount of domestic and international data. This greatly facilitates support for subsequent clinical treatment decisions. For instance, by comparing data to identify test results similar to those of a given sample, clinicians can review how such cases were treated at the time and what outcomes were achieved, providing valuable reference for clinical practice.

Yuanma Gene has also partnered with Intel to help hospitals implement local testing and remote data assistance. Currently, all test data is interpreted in Beijing, and to ensure the accuracy and standardization of testing, future interpretations will continue to be conducted in Beijing. This requires IT technical support; by collaborating with Intel to launch a sub-center IP solution, we can significantly facilitate data transmission, processing, and interpretation.

In May this year, Yuanma Genomics announced the integration of its existing ddPCR and NGS product lines, launching the liquid biopsy sub-brand “10K.” Although NGS technology theoretically offers high detection sensitivity, positive loci identified to date still require validation by an alternative method, with ddPCR being the preferred validation technique. The combination of ddPCR and NGS has become the standard configuration for current liquid biopsy applications. Leveraging its proprietary Ucap technology and supporting platform, the company aims to achieve a detection frequency of one in ten thousand for common drug-related genetic loci using just 10 milliliters of blood.

The company has just completed its Series A financing round this year, with the Series A+ round expected to launch in early next year. In the future, Yuanma Gene plans to develop in vitro diagnostic products based on its Ucap, Dcap, and Tcap technologies for promotion to more hospitals. “In addition, we will rapidly translate scientific discoveries into clinical products,” said Tian Geng. “Technology is at the core of Yuanma Gene. As Chinese society undergoes a period of transformation, the value of technological innovation will become increasingly evident, serving as the fundamental driving force for corporate survival.”