Aurora Biosciences Completes Nearly RMB 100 Million Series B+ Financing to Build China's Most Comprehensive Digestive Tract Cancer Early Screening Platform

VCBeat has learned that Hangzhou Ao Rui Biological Technology Co., Ltd. (hereinafter referred to as “ORIOMICS”) recently completed a B+ round of financing amounting to nearly RMB 100 million. The round was led by Fortune Capital, with participation from KinghandCapital, Hotgen, and the company’s management team. The proceeds will be primarily used for the clinical registration and market commercialization of its liver cancer early screening product—the first multi-omics platform based on PCR and protein assays in China—as well as its multi-cancer early screening product for gastrointestinal cancers. Additionally, funds will support the research and development of other single-cancer and pan-cancer early screening and diagnostic products. Changhai Capital continues to serve as the company’s exclusive financial advisor.

The burden of gastrointestinal cancers in China continues to rise. According to the IARC’s “Global Cancer Statistics 2020,” there were 4.57 million new cancer cases in China in 2020, with colorectal, gastric, liver, esophageal, and pancreatic cancers accounting for 42% of the total incidence and 49% of cancer-related deaths. The target population for early screening products for gastrointestinal cancers exceeds 500 million people. Based on an annual screening cost of RMB 500 per person, the market size reaches RMB 300 billion per year. Moreover, the clinical value of early screening is well-established, making it a key area of support under national policies.

Taking early screening for liver cancer as an example, multiple in vitro diagnostics (IVD) companies have made substantial investments in product development and have achieved significant efficacy data in preliminary clinical studies. In terms of technology platform selection, most companies adopt next-generation sequencing (NGS) technology: NGS offers high throughput and a detection scope that covers more known and unknown genes, making it easier to achieve high product performance compared to PCR platforms. However, NGS products exhibit clear weaknesses in commercialization: (1) Neither the FDA nor the NMPA has approved registration certificates for large-panel NGS products; these products exist only as laboratory-developed tests (LDTs), making commercialization in China particularly challenging. This is especially true given that, unlike companion diagnostics which address an “essential need,” early screening and auxiliary diagnosis rely more heavily on in-hospital sales support; (2) The turnaround time for reports is long, and the pricing is high, with little difference in charging standards compared to traditional diagnostic methods for liver cancer, such as contrast-enhanced CT and MRI imaging; (3) Compared to PCR instruments, which are widely deployed in secondary and tertiary hospitals, NGS equipment has low penetration within hospitals. Furthermore, NGS testing requires more specialized teams for sample analysis and data interpretation. Consequently, most NGS-based products are processed via external referral. In contrast,ORIOMICS’s “PCR + Chemiluminescence” technology platform offers enhanced convenience and superior performance, with moderate pricing and turnaround time. Its regulatory approvals and in-hospital promotion strategies are highly mature, making it an ideal early-screening solution well-suited to the Chinese market.

 Figure: ORIOMICS’ “Liwei’an” and “Xiaoweian” products won the first and second prizes, respectively, in the Top Ten Innovative Technology Products of the Year for Tumor Markers.

Figure: ORIOMICS Wins the 2022 Annual Technology Innovation Award in the Genetic Testing Industry

ORIOMICS was founded in 2018. Its core technical team hails from renowned medical schools and cancer centers in China and the United States, boasting profound academic and technical expertise in molecular biology, statistical genetics, and computational biology. The company has established a comprehensive suite of technologies for effective locus screening on PCR platforms and highly efficient ctDNA enrichment. In late 2021, ORIOMICS introduced Hotgen as a strategic investor. Hotgen, which pioneered China’s first triple-marker test for liver cancer, has formed strong synergies with ORIOMICS in underlying technologies and future product commercialization.

ORIOMICS has launched a series of solutions in the gastrointestinal field, ranging from single-cancer to pan-cancer detection, featuring superior performance and leading regulatory approval progress.ORIOMICS’ early liver cancer screening product, “Li Wei An,” has been meticulously refined by the company over several years and validated using ultra-large sample sizes. The product currently demonstrates excellent sensitivity and specificity, placing it at the industry’s leading edge. Its multi-cancer early screening product for the five most common digestive system cancers—liver, gastric, colorectal, esophageal, and pancreatic cancers—“Xiao Wei An,” along with its pan-cancer early screening products covering more than 20 cancer types, have all achieved industry-leading performance in overall sensitivity, specificity, and tissue-of-origin accuracy. ORIOMICS’ product pipeline is not limited to gastrointestinal cancers; R&D efforts for early screening and auxiliary diagnostic products for several other high-incidence cancers are also being actively advanced in parallel.In the future, ORIOMICS is poised to be the first to break the barrier of lacking regulatory approvals for its early screening products for liver cancer and multi-cancer gastrointestinal tract screening, providing patients in hospitals with the most “accurate, affordable, rapid, and convenient” solutions.

 Figure: Introduction to Selected Products from ORIOMICS

Regarding the company’s future development plans, Mr. Yu Shaohua, General Manager of ORIOMICS, stated: “ORIOMICS will continue to intensify its R&D efforts to further refine its screening products for gastrointestinal tumors, while expanding research into additional cancer types. Leveraging our robust technical R&D capabilities and our efficient methylation site screening platform, we aim to build a multi-tiered product pipeline comprising single-cancer, multi-cancer, and pan-cancer assays. We appreciate the long-term confidence that various investment institutions have placed in the tumor screening industry, as well as their recognition of ORIOMICS’ management team. Committed to advancing human health through cutting-edge technology, ORIOMICS will develop more tumor screening products suitable for widespread application.”

Wang Xianzheng of Fortune Capital stated:Liver cancer and gastrointestinal tumors are the most prevalent malignant neoplasms in China. Due to the lack of effective and accessible early screening methods, the mortality rates associated with these cancers are significantly higher than those in the United States. ORIOMICS has established a globally leading NGS-based platform for tumor biomarker discovery, subsequently developing diagnostic products based on PCR methylation and protein multi-omics. These products substantially reduce costs and enhance accessibility while ensuring high sensitivity and specificity, thereby meeting the critical clinical demand for accuracy, affordability, speed, and ease of use. We look forward to the imminent entry of ORIOMICS’ products into the clinical market, bringing benefits to the large population in China at high risk for cancer.

Zhang Dafeng, Chairman of KinghandCapital, stated:Cancer has become one of the leading threats to the health of the Chinese population, making cancer prevention and control an urgent priority. Early detection and early treatment are the most critical factors in improving patients' five-year survival rates. Gastrointestinal cancers are highly prevalent in China with high mortality rates; however, the five-year survival rate is significantly higher when detected at an early stage. ORIOMICS has deeply cultivated the field of non-invasive early screening and diagnosis for gastrointestinal cancers, continuously strengthening its foundational technologies. The company pioneered a dual-technology platform for early cancer screening, offering products with superior performance, affordable pricing, and ease of use, thereby truly benefiting the general public. We are optimistic about ORIOMICS’ prospects and are honored to have the opportunity to participate in the company’s future development. We believe that, leveraging its profound insights into related diseases, robust R&D capabilities, and exceptional execution, the ORIOMICS team will achieve further breakthroughs in early screening for gastrointestinal cancers and pan-cancer early detection, ultimately creating broader opportunities for the entire industry.

Shi Yongzhan, Deputy General Manager and Board Secretary of Hotgen, stated:Hotgen has long been dedicated to advancing liver health in China and aims to collaborate with ORIOMICS to build a comprehensive liver health management platform covering the entire diagnostic journey from hepatitis to liver cancer.As a strategic investor in ORIOMICS, Hotgen is committed to supporting the company’s long-term growth and witnessing its development into a leading enterprise in China’s early screening and diagnosis sector. By continuously developing more accurate and convenient early screening solutions for gastrointestinal cancers, Hotgen aims to enhance health management for the general public.

Li Yichen, Project Leader at Changhai Capital, stated:It is our great honor to have accompanied ORIOMICS through its latest round of financing. Focusing on the RMB 100 billion market for early screening of gastrointestinal cancers, ORIOMICS boasts a distinctive “PCR + Protein Multi-omics” technology platform. Compared with typical startups, ORIOMICS’ products demonstrate strong core competitiveness in regulatory approval and commercialization. We look forward to the imminent market launch of ORIOMICS’ products, which will benefit the broad Chinese population.

Fortune Capital is one of the most influential venture capital firms in China. With its outstanding performance, Fortune Capital has consistently ranked among the top in evaluations conducted by authoritative institutions such as the China Venture Capital and Private Equity Association (CVCA), Zero2IPO Group, CVSource, and Financing China. It has been listed among Zero2IPO’s “Top 50 Best Venture Capital Firms in China” for 22 consecutive years, ranking first in 2012 and 2015, and maintaining a position within the top three domestic VC firms over the past decade. Furthermore, in the evaluations of private equity fund managers invested by insurance funds conducted by the Insurance Asset Management Association of China (IAMAC) in 2020, 2021, and 2022, Fortune Capital was rated as a Class A institution with high scores for three consecutive years. Currently, Fortune Capital manages nearly RMB 50 billion in assets, has invested in more than 730 companies, and successfully exited from 278 investments. Among these, 141 companies have gone public, and a cumulative total of 103 companies have been listed on the National Equities Exchange and Quotations (NEEQ). Its portfolio includes numerous prominent publicly listed companies such as Aier Eye Hospital, EVE Energy, Wangsu Science & Technology, CanSino Biologics, Mingyuanyun, Shangpin Home Collection, Huayou Cobalt, H&T Intelligent Control, G-bits, BlueFocus, Sunner Development, Teway Food, and Dingdong Maicai.

Kinghand Capital is a leading private equity investment firm focused on the healthcare sector, dedicated to leveraging capital and industrial resources to accelerate the growth of outstanding healthcare enterprises, deliver superior medical products and services to society, and advance human health. Currently, Kinghand Capital manages 16 RMB-denominated funds and three USD-denominated funds. Its funds have invested in 83 high-quality projects, with 16 portfolio companies having completed initial public offerings (IPOs), including one that has received registration approval from the China Securities Regulatory Commission (CSRC). Notable IPOs include Aier Eye Hospital Group’s competitor Puri Eye Hospital (301239.SZ), Jinxin Fertility (HK.1951), Sino Medical Sciences Technology (688108.SH), Tinavi Medical Technologies (688277.SH), Viva Biotech (HK.1873), Innotest Diagnostics (688253.SH), LabPilot Bio-Technology (688393.SH), Clover Biopharmaceuticals (HK.2197), and Angios (688581.SH). As of the current date in 2023, one portfolio company has filed for an IPO on the STAR Market and had its application accepted. Kinghand Capital expects more than ten additional portfolio companies to list on major domestic and international stock exchanges within the next two years.

Hotgen, founded in 2005, is a high-tech enterprise focused on the biopharmaceutical sector. It was listed on the STAR Market of the IVD sector in 2019 (Stock Code: 688068). The company continuously explores independent innovative diagnostic technology platforms and actively researches and expands liquid biopsy technologies for early cancer screening, establishing multi-omics diagnostic technology platforms that include protein biomarkers, glycan exosomes, and DNA methylation. Its innovative technology incubation platform, the Future Technology Research Institute, focuses on exploring the translation of cutting-edge technologies and has already laid out strategic positions in frontier areas of biopharmaceuticals such as antibody drugs, live biotherapeutic products, and nucleic acid drugs. Upholding the mission of “Advancing Biotechnology to Benefit Human Health,” Hotgen is committed to building a group-wide industrial layout spanning diagnosis, treatment, and health management.

Changhai Capital is a financial advisory firm specializing in the healthcare sector, providing companies with in-depth, customized financing strategies and services. The team possesses extensive industry experience in life sciences, medical devices, in vitro diagnostics (IVD), and healthcare services. It has led and participated in the financing rounds of numerous high-profile enterprises, helping them achieve rapid growth and maximize their value.

Since its establishment, ORIOMICS has been deeply engaged in the research and development of non-invasive technologies for the early screening and diagnosis of digestive system tumors, committed to providing first-class early screening products for these cancers. Leveraging a strong team specializing in biotechnology and bioinformatics analysis, the company employs non-invasive cell-free DNA (cfDNA) methylation detection technology. By utilizing a multi-omics integrated platform combined with dual-layer machine learning algorithms powered by big data and artificial intelligence, ORIOMICS has established a high-performance technical roadmap for the early screening and diagnosis of tumors.Drawing on years of accumulated big data in the field of digestive system tumors, the company has successfully launched multiple single-cancer and multi-cancer joint detection products targeting the five most common digestive system cancers: liver cancer, gastric cancer, colorectal cancer, esophageal cancer, and pancreatic cancer. The detection performance of these products has reached a leading industry standard. Adhering to the philosophy of "making technology accessible to the public and serving health through innovation," ORIOMICS remains guided by clinical needs and customer-centricity. Its development goal is to create tumor early screening and diagnostic products that offer superior performance, greater affordability, and enhanced ease of testing.