Genetron Health Secures Hundreds of Millions in RMB in Series B Funding, Valuation Exceeds $1 Billion Ahead of IPO Filing

On September 20, 2016, Beijing Genetron Health Co., Ltd. announced that it had completed its Series B financing round, raising hundreds of millions of RMB. The round was led by Vcanbio Cell & Gene Engineering Corp., with participation from New Horizon Capital and existing Series A investors including Fenxiang Investment, OrbiMed Advisors, and Jiadao Gongcheng, among other institutional investors.

Genetron Health, established in 2013, is dedicated to providing health management products that cover all stages of the cancer care continuum—including risk assessment, early screening, molecular diagnosis, and postoperative monitoring. By collaborating with medical experts and research institutions, Genetron Health delivers reliable molecular diagnostic solutions and professional cancer genetic risk assessments to cancer patients, individuals at high risk for cancer, and the general healthy population.

Zhongyuan Union Cell & Gene Engineering Corp. injected RMB 100 million into Beijing Genetron Health, acquiring a 10% equity stake. Additionally, it acquired a 5% equity stake in Genetron Health from Beijing Jinchuang Junlian Investment Management Center (Limited Partnership) for RMB 23 million. As a result, Zhongyuan Union holds a total of 15% equity in Genetron Health. Since its establishment, Genetron Health has received investments from numerous prominent investors.

In July 2015, Genetron Health secured a total investment of RMB 70 million from Fenxiang Investment, Shenzhen Pengrui Investment, Beijing Chongde Hongxin Venture Capital, and Shenzhen Jiadao Gongcheng Equity Investment Fund, in exchange for a combined 20.72% equity stake;

In August 2015, Genetron Health received a RMB 15 million investment from Yuein Ventures in exchange for a 4.25% equity stake;

In September 2015, Genetron Health secured RMB 50 million in investment from Yueyin Ventures and Gongqingcheng Fenxiang Houde Guoqian Ventures, diluting an additional 9.09% equity stake;

In June 2016, Wang Sizhen, the legal representative of Genetron Health, increased the company’s capital by RMB 2.1736 million, holding a 4.76% equity stake. Following the investment from Vcanbio, the shareholding structure of Genetron Health was as follows:

Within just over two years since its establishment, Genetron Health has successfully completed the foundational layout for industrialization. This round of financing will be used for:

1、Accelerate Expansion Across the Upstream and Downstream of the Industrial Chain: Accelerate the R&D and clinical translation of genetic diagnostic instruments and kits, and establish R&D collaborations in the therapeutic field.

2、Consolidate and Continue to Expand Markets and Channels: Currently, Genetron Health has collaborated with dozens of key research and medical institutions across China on nearly 100 research projects, and has established in-depth partnerships with nearly 100 Grade III Class A hospitals and other medical institutions. The new funding will be used to further implement market strategies and expand national channels and marketing networks.

3、Optimize Product Portfolio: Develop and implement a more specialized product line that better aligns with the demands of the Chinese market.

4、Big Data Development: Accelerate the accumulation and in-depth mining of proprietary data.

“Pangene” is derived from Charles Darwin’s “Theory of Pangenesis,” which is the true etymological origin of the familiar term “gene.” In other words, “pangene” represents humanity’s earliest definition of genetic material. Guided by the philosophy of tracing the origins of cancer genes, Genetron Health was established.

(Chief Scientist Professor Hai Yan, Chief Executive Officer Sizhen Wang, Chief Operating Officer Ying Hong)

Yan Hai, the company’s founder, is a world-leading expert in the field of cancer gene diagnosis and therapy, a Chaired Professor at Duke University in the United States, and a recipient of the Team Science Award from the American Association for Cancer Research. Wang Sizhen, the other co-founder and CEO, previously worked at Capital One, the largest financial holding company in the United States; he was also a co-founder of iTalkBB, a well-known U.S. telecommunications operator. He brings over 16 years of experience in corporate management and successful entrepreneurship. Hong Ying, the Chief Operating Officer, has more than 16 years of experience in marketing operations and management within the healthcare sector. She previously served as Marketing Director for Johnson & Johnson Medical in the Asia-Pacific region, Director of Johnson & Johnson China’s Surgery Division, General Manager of Bard Medical China, and Vice President for Bard Medical’s North Asia region.

Genetron Health has a workforce of over 200 employees, with researchers accounting for nearly half. Among them, highly educated professionals holding master’s or doctoral degrees constitute more than half of the R&D team. Furthermore, Genetron Health has established in-depth collaborations with dozens of Grade 3A hospitals across China in the field of clinical diagnosis and treatment.

Genetron Health is one of the earliest genetic technology companies in China to enter the field of precision oncology. Since its inception, the company has established a strategic framework that advances both medical research and clinical services in parallel. As the first innovative enterprise in China to integrate all aspects of cancer care—including genetic risk assessment, early screening, molecular pathological diagnosis, postoperative monitoring, and treatment—and to effectively combine gene sequencing with precision immunotherapy, Genetron Health is dedicated to assisting medical experts in providing reliable molecular diagnostic and therapeutic solutions, as well as professional cancer genetic risk assessments, to cancer patients and high-risk populations.

Genetron Health has always regarded scientific research and product development as its core competitive advantages. Its research team boasts over two decades of experience in cancer genetics research and clinical translation, with dozens of top-tier research publications and multiple internationally leading patents. Over the past two years, through collaborations with China’s top cancer hospitals and research institutions, the company has published six research articles in prestigious academic journals such as Nature Genetics. Meanwhile, Genetron Health has established long-term partnerships with two of the most authoritative cancer research centers in the United States—Duke University and Johns Hopkins University—gaining access to the world’s most cutting-edge cancer research technologies. The company has forged in-depth collaborations with Duke University’s Laboratory for Cancer Genomics and Brain Tumor Research Center, and has entered into an exclusive strategic partnership with Personal Genomic Diagnostics (PGDx), a genetic testing company co-founded by Professor Bert Vogelstein of Johns Hopkins University.

Faneson's products and services are mainly divided into three parts:Clinical Diagnosis and Treatment; Health Management; Scientific Research Services.

Clinical Diagnosis and Treatment: Molecular targets are emerging as one of the most clinically valuable, objective, and reliable tools, with comprehensive applications in precision diagnosis, prognosis, and treatment. In this regard, Genetron Health offers products and services including targeted cancer gene profiling, non-invasive cancer genetic testing, molecular testing for gliomas, and whole-genome tumor analysis.

Health Management: Assessing cancer risk in high-risk populations through tumor genetic screening to enable earlier and more targeted cancer prevention. In this area, Genetron Health currently offers products and services including hereditary cancer genetic screening.

Research Services: Providing services to cancer medical research experts and companies dedicated to developing cancer therapeutics. In this regard, Genetron Health currently offers the following products and services: DNA methylation sequencing analysis; transcriptome sequencing analysis; whole-exome sequencing analysis; and whole-genome sequencing analysis.

Big data is a fundamental characteristic of life. For the quantification of vital signs, genomic data represents the most foundational and core information. Data constitutes one of the core competitive advantages for the long-term development of a genetic testing company; Genetron Health has placed significant emphasis on the power of data since its inception.

First, Genetron Health conducts systematic and comprehensive data collection:Including genetic data, clinical indications, family medical history, and treatment and survival dataGenetron Health boasts an advanced, comprehensive, and diversified testing platform capable of rapidly and accurately detecting various types of nucleic acids and proteins in clinical samples, thereby providing robust support for cancer genomics research and clinical applications. In April 2016, Genetron Health introduced the Illumina HiSeq X Ten, the sequencing system with the highest throughput and efficiency globally. Each HiSeq X instrument can generate 1.8 Tb of data in three days, equivalent to 600 Gb per day. If ten instruments are operated simultaneously, up to 18,000 human genomes can be sequenced annually. With the support of the HiSeq X Ten, Genetron Health aims to build a more powerful “Cancer Genetic Testing System Engineering” platform.

Genetron Health Illumina HiSeq X Ten Sequencing Platform

Yan Hai, Chief Scientist at Genetron Health, stated, “Leveraging the powerful sequencing capabilities of the HiSeq X Ten platform, Genetron Health is able to further conduct high-quality, high-coverage whole-genome sequencing, bringing new breakthroughs and deeper insights to human genome research. In the future, Genetron Health will continue to promote in-depth collaboration with major hospitals and research institutions, committed to making gene and clinical big data more practically benefit patients and the broader health-conscious population. While providing better services, we aim to support new explorations and breakthroughs in domestic cancer and complex disease research.”

Wang Sizhen, CEO of Genetron Health, stated, “Following the official launch last year of our R&D and production center in Beijing and our R&D center in North Carolina’s Research Triangle Park—known as the ‘Eastern Silicon Valley’ of the United States—we will continue to collaborate with world-class sequencing vendors, technology companies, and pharmaceutical firms. Leveraging Genetron Health’s capabilities in medical translation, we remain committed to advancing cancer scientific research and serving cancer patients in China.”

Genetron Health’s diverse, international team comprises experts from various fields, including cancer genetics, molecular biology, bioinformatics, pharmacology, clinical pathology, and clinical medicine, establishing an internationally standardized multidisciplinary collaboration system for precise cancer diagnosis and treatment. Meanwhile, Genetron Health’s collaborations with Duke University and Johns Hopkins University have further facilitated the company’s global expansion.

Furthermore, Genetron Health has established a diversified molecular testing technology platform and a bioinformatics analysis platform, set up dual R&D centers in the United States and China, and engaged in clinical, scientific research, and data analysis collaborations with top pharmaceutical companies in both countries. Likewise, Genetron Health’s product design is consistently aligned with international frameworks and visions; its molecular diagnostic services and test kits are developed according to a global development architecture, enabling better alignment with both the Chinese and international markets.