Jiedma DNA Secures Tens of Millions in Series A Funding to Advance Dual-Track Strategy of Genetic Testing and IVD Kits

VCBeat has learned that Decode DNA completed its Series B financing in early March 2016. The round amounted to tens of millions of RMB, led by Haihui Venture Capital with participation from Ping An Venture Capital. Previously, Decode DNA had secured its Series A investment from Ping An Venture Capital. This latest funding will provide strong momentum for Decode DNA’s business growth, accelerating the research and development of IVD kits and their CFDA certification, while further refining its product portfolio and industrial layout.

It is understood that Decode (Shanghai) Biopharmaceutical Technology Co., Ltd. was established in August 2011. As a high-tech enterprise specializing in molecular diagnostics and health management, the company aims to provide healthcare institutions and the general public with comprehensive, personalized health management solutions based on molecular diagnostics. To date, the company has filed more than 30 invention patent applications, obtained six software copyrights, and secured ten trademark registrations. It has also been recognized as a Shanghai High-Tech Enterprise and achieved ISO 9001 certification.

In 2014, Decode DNA began establishing its own medical laboratory. Currently, the medical laboratory in Qingdao is poised to commence official operations, while the facility in Shanghai is still under construction. The vigorous advancement of IVD kit development has further refined Decode DNA’s industrial layout. On one hand, Decode DNA’s medical laboratories can provide genetic testing services to healthcare institutions. On the other hand, IVD kits approved by the CFDA will also supply molecular diagnostic products to these institutions.

Persisting in Life Sciences: Driven by Dreams and Passion

Pan Jiakui said that he initially chose to major in biology because he firmly believed in the statement that “the 21st century is the century of life sciences.” However, as the 21st century was just beginning and the industry had not yet fully developed, it was difficult to persevere during those early stages without the support of a dream. In 2007, after graduating with a master’s degree in molecular biology from Shanghai Jiao Tong University, Pan Jiakui stayed true to his original aspirations and joined a genetic testing company, despite the myriad of opportunities and choices available in society.

His two years of work experience laid a solid foundation, enabling him to gain a deeper understanding of the immense market potential in the genetic testing industry: beyond preventive genetic testing, clinical applications of genetic testing are also becoming increasingly important. In 2010, he chose to embark on an entrepreneurial journey in the field of genetic testing.

Over the past four years, the team has grown from an initial five members to nearly 100, and its workspace has expanded from a small mixed-use residential-commercial unit to over 3,000 square meters of office space. Adhering to the originally established dual-pronged strategy of prevention and clinical care, Pan Jiakui has led the Decode DNA team in making rapid and steady progress. Currently, Decode DNA has partnered with more than 200 hospitals across China and entered into an exclusive collaboration with Ping An in April 2015.

Clinical Genetic Testing: A Matter of Life and Death

Pan Jiakui stated that DNA decoding in clinical genetic testing primarily focuses on “matters of life and death.” “Life” refers to products and services related to maternal and child health, while “death” pertains to those centered on oncology. These two strands—“life” and “death”—underscore the critical importance and irreplaceability of genetic testing.

“The importance of genetic testing is self-evident, and it is well worth promoting and popularizing. However, the coverage of genetic testing in China remains quite limited, and we still have a long way to go. Taking non-invasive prenatal genetic testing as an example, there were a total of 600,000 such tests conducted in China in 2015, with a coverage rate of less than 4% among pregnant women,” introduced Pan Jiakui.

Figure: Service Offerings of Decode DNA Clinical Genetic Testing

• Preventive genetic testing is like highlighting key points before an exam.

Pan Jiakui offers a vivid analogy: “Preventive genetic testing is like highlighting key topics before an exam. Not every highlighted point will necessarily appear on the test, but the exam content will definitely fall within this scope. Genetic testing aims to inform you which diseases carry a higher risk of onset. Similarly, in terms of medication, genetic testing can indicate which drugs are more effective for treatment after disease onset.”

Pan Jiakui told VCBeat that everyone is at risk of developing diseases. If we can predict risks in advance and provide personalized recommendations, we can artificially reduce the likelihood of disease onset, aiming to delay its occurrence or ideally prevent it altogether. Personalized recommendations include guidance on diet, behavior, and lifestyle adjustments in daily life.

Figure: Decoding DNA Preventive Genetic Testing Service Project

Gene ID: May There Be a World Without Child Abduction

Driven by a commitment to public welfare, Decode DNA has also ventured into the charitable sector. To address the issue of missing children, Decode DNA launched the Gene ID project, aiming to provide robust protection for children and contribute to efforts against child trafficking. The Gene ID is used solely for identity verification and does not involve any information related to an individual’s physical health.

Gene ID, also known as DNA fingerprinting, involves the detection of polymorphic loci in human DNA through molecular biology techniques. The lengths of these fragment loci vary among individuals. The combination of multiple such genetic loci is unique, thereby enabling personal identity verification and the establishment of parental relationships.

The genetic ID testing employs the same identification technologies used by China’s Ministry of Public Security Forensic Science Center and the U.S. Federal Bureau of Investigation (FBI). Compared with the traditional 13-locus profiling, this test expands to 21 loci (including the original 13), theoretically offering higher accuracy due to the increased number of loci analyzed. Users need only order the product online, perform self-sampling, and mail the samples back to receive an electronic report.

In the unfortunate event that a child goes missing, parents can provide this data to public security authorities as supplementary physical evidence. Should the child’s sample appear in the database again—for instance, if the child voluntarily undergoes testing at a later date, or if testing is facilitated by public security organs following the rescue of an abducted child—a match can be identified through this database. Upon a successful match, Decode DNA will immediately notify the child’s biological parents and advise them to promptly contact local law enforcement based on the location where the sample was submitted. Gene ID solemnly commits to providing free access to this database for public security systems, thereby assisting more families and children.

Furthermore, a backup of a child’s genetic identity can provide strong evidence for legal accountability. For the demand side of human trafficking—the buyers—if children can be reunited with their biological parents at any time through genetic ID matching, and if the buyers face severe legal penalties once their crimes are exposed, few people would be willing to engage in such risky endeavors that could result in both financial loss and legal consequences. By employing a “radical solution,” genetic IDs can eradicate the root causes of human trafficking, thereby creating a safer environment for children.