Gene Sequencing Giant Berry Genomics Announces $4.3 Billion Backdoor Listing via Tianxing Instrument
Gao Yang, Chairman of Beijing Berry Genomics Biotechnology Co., Ltd.
Chengdu Tianxing Instrument Co., Ltd., which has been suspended from trading since the market opened on June 15, disclosed its “Announcement on Progress of Major Asset Restructuring” on the evening of August 29. In this restructuring, Tianxing Instrument willAll of its current assets, liabilities, businesses, personnel, and other related items shall be sold to Tianxing Group or a third party designated by it, with such purchase to be made in cash; sameat the time,Tianxing Instruments Issues Shares to All Shareholders of Berry Genomics to Acquire Their 100% Equity Interest in Berry Genomics。
Domestic gene companies hold a distinct competitive advantage in the mid- and downstream sectors. The leading tier of companies in the midstream segment includes four enterprises: BGI Genomics, Berry Genomics, Daan Gene, and CapitalBio Technology. Other well-known companies include Annoroad Gene Technology, Novogene, Vandion Biotechnology, and Biomarker Technologies. If the announcement proceeds smoothly,This means that Berry Genomics will go public via a backdoor listing through Tianxing Instruments.. The announcement stated: “This asset restructuring constitutes a related-party transaction, and simultaneously qualifies as both a material asset restructuring and a backdoor listing.”
According to available information, Tianxing Instrument is primarily engaged in the design, production, processing, and sales of automotive and motorcycle components, with its controlling shareholder being Chengdu Tianxing Instrument (Group) Co., Ltd. To ensure the orderly conduct of the current major asset restructuring, “the Company intends to continue planning the major asset restructuring matters and apply for a continued trading suspension.”
Berry Genomics, established in May 2010, is dedicated to applying high-throughput gene sequencing technology to provide “non-invasive” comprehensive solutions for clinical disease screening and diagnosis.An R&D-focused biotechnology company. The controlling shareholder and actual controller is Mr. Gao Yang, a natural person.
VCBeat (WeChat ID: vcbeat) has learned that Berry Genomics’ R&D team is led by Dr. Zhou Daixing, who previously participated in the design and development of high-throughput sequencers, and consists of high-throughput sequencingThe company is composed of top-tier experts in experimental research, R&D, and bioinformatics analysis within the fields of sequencing and clinical genetic testing. It obtained certification as a Zhongguancun High-Tech Enterprise in September 2011 and was certified as a National High-Tech Enterprise in December 2012.
Zhou Daixing was the first to introduce NIPT (Non-invasive Prenatal Testing) to China, establishing a partnership with Xiangya Hospital of Central South University at its inception in 2010.Collaborated on Phase I clinical trials for non-invasive prenatal DNA testing; in April 2011, collaborated with Peking Union Medical College Hospital to conduct Phase II clinical trials for non-invasive prenatal DNA testing; over a two-year periodDevelopment: Berry Genomics entered 150 hospitals across more than 30 provinces in China, becoming one of the two largest companies in this field alongside BGI Genomics. To date, Berry Genomics has coveredOver 2,000 hospitals, with a total of more than 1,000 employees.
Its rapid development has also attracted the favor of capital.In September 2011, Berry Genomics secured $17.8 million in Series A financing from Legend Capital, and in mid-2013, it obtained $25 million in Series B financing led by Qiming Venture Partners.These funds helped Berry Genomics continuously expand its business lines. Starting from providing scientific and technological services solely to research institutions and universities, the company evolved to directly offer clinical diagnostic testing services in 2013, gradually transforming these services into commercial products.
Currently, Berry Genomics’ services span prenatal testing, preconception testing, genetic disease testing, and oncology testing. It has established a comprehensive framework covering chromosomal numerical and structural abnormalities, as well as chromosomal microdeletions and microduplicationsTechnical dimensions delve progressively deeper at the horizontal and genetic levels; product coverage extends sequentially across premarital, preconception, prenatal, neonatal, and oncology sectors; ranging from the interpretation of individual genomic data to population-levelA three-dimensional developmental structure that progressively advances through digital dimensions, from somatic genome data analysis to guided interpretation of individual genomic data.
In addition to midstream gene sequencing services, Berry Genomics is also actively expanding into the upstream market for sequencing instruments and reagents, and in 2014, with the leading company in gene sequencersestablished a close strategic partnership with Illumina. On March 20, 2015, Berry Genomics and the U.S.-based company Illumina jointly developed a new high-throughput gene sequencer(NextSeq CN500), approved by the China Food and Drug Administration (CFDA). Also approved was the test for fetal chromosomal aneuploidy (T13/T18/T21).Kit (Reversible Terminator Sequencing Method) Medical Device Product.
Previously, BGI Genomics had disclosed its prospectus in December 2015, planning to list on the ChiNext board first. However, it now appears that Berry Genomics may take the lead.
BGI Genomics: Plans to List on the ChiNext Board, with Expected Fundraising of RMB 1.732 Billion. As the domestic leader in the commercial application of gene sequencing, the company’s core business involves providing genomics-based diagnostic and research services to medical institutions, scientific research organizations, enterprises, and public institutions through genetic testing and other methods. To mitigate reliance on foreign suppliers for upstream raw materials such as sequencing instruments, the company acquired the U.S. gene sequencing firm Complete Genomics in 2012, thereby securing proprietary rights to its DNA sequencers.
Rongzhilian: Applying Big Data to the Field of Gene Sequencing. The company was originally a professional provider of data center solutions and services. In 2013, it began specializing in big data applications by entering the fields of Internet of Vehicles (IoV) and carrier network optimization and data analysis, and later expanded into big data applications for gene sequencing. Due to its collaboration with BGI Genomics, the company has accumulated substantial data resources.
New Open Source: Expanding from the Traditional Chemical Industry into the Big Health Sector. Acquiring 100% Equity Interests in Heer Medical, Sanji Bio, and Jingneng Bio through a Private Placement of Shares. Heer Medical specializes in early cancer diagnosis and is poised to become a leader in non-invasive early cancer detection; Sanji Bio focuses primarily on personalized therapy; Jingneng Bio is positioned as a third-party genetic testing technology service platform. The three companies exhibit strong synergies.
Daan Gene: Leader in Molecular Diagnostics. Guangzhou Daan Gene Co., Ltd. holds a 47.71% stake in Darui Biotechnology. Darui Biotechnology has long been dedicated to advancing screening and diagnostic technologies for birth defects, genetic disorders, and tumors, focusing on the development and application of next-generation sequencing (NGS) and high-end immunoassay products, with the goal of becoming an influential and outstanding enterprise in the field of genetic and tumor diagnostics. The company possesses next-generation molecular diagnostic technologies represented by high-throughput sequencing, commands a 50% market share in the molecular diagnostics industry, and stands as the undisputed industry leader.
Dian Diagnostics: Acquired a 25% equity stake in Bosheng Biotechnology, which holds significant advantages in high-throughput next-generation sequencing (NGS) technology, with the potential to further increase its shareholding in the future; acquired SCL, South Korea’s largest health management company; and partnered with Ali Health, among other initiatives.
Vcanbio: A rare enterprise in the A-share market with cell engineering and genetic engineering as its core businesses. The company’s operations include stem cell storage, stem cell therapy, tumor cell immunotherapy, genetic testing, beauty and wellness services, and elderly care. As a leading company in the stem cell sector, its current main products are reagents—specifically genetic testing reagents and cell testing reagents—securing a strategic advantage at the upstream end of the market.
Everfine Opto-Electronics: Investment in Heyi Gene. The company specializes in LED and lighting testing equipment and services, with frequent capital operations. After proposing the Everfine Technology Industry Platform strategy in 2015 to initiate external expansion, it invested in Mingzhan Network, Hongxiang Technology, and Newmai Electronics, and may continue to pursue external growth opportunities in the future. It holds a 15% equity stake in Heyi Gene, which focuses on gene technology research and industrialization.