China's Life Science 'Heart-Piercing Curse' Is Finally Broken!

"Ne Zha 2" Box Office Breaks Through 8 Billion, Becomes China's No.1 Film!

In the film, at the critical moment when Nezha is struck by the Heart-Piercing Curse and trapped in the alchemy furnace, about to be "refined," Nezha lets out an angry roar,重塑肉身, completes rebirth, and shatters the furnace!

China's life science sector is also experiencing this moment. With the issuance of the "Unreliable Entity List" like a thunderbolt, the "heart-piercing curse" on China's life sciences has finally been broken!

On February 4, China's Ministry of Commerce delivered a heavy blow to the U.S. gene sequencing giant Illumina, striking at its vital point. "Violating normal market transaction principles, interrupting normal transactions with Chinese enterprises, and adopting discriminatory measures against Chinese enterprises seriously infringes upon the lawful rights and interests of Chinese companies. The Unreliable Entity List will impose corresponding measures on the aforementioned entities."

And all this is just the beginning of the difficulties.

Illumina Reaps Enormous Profits in the Chinese Market but Fails to Collaborate with China's Gene Sequencing Industry, Even Diverging on Certain Critical Issues. As Domestic Brands Rise Strongly, Concerns Over Illumina's Data Security Continue to Grow, Leading to Its Decline in the Chinese Market.

Latest earnings report on February 6 showed that Illumina's revenue in China continued to plummet, with revenue in 2024 at 300 million U.S. dollars, a year-on-year decline of nearly 20%. This marks the third consecutive year of decline in the Chinese market, compared to the peak period of 500 million U.S. dollars, which has now been halved.

However, Illumina has not yet faced reality.

On February 10, Illumina issued another statement, "Illumina welcomes and supports fair and healthy market competition, and believes that competition is beneficial to the development of the industry."At the same time, the company opposes any behavior that restricts competition."

Illumina Still Stands Tall.

In the past, faced with Illumina's aggressive actions, we had no choice but to swallow the bitter pill of technological blockades, helplessly watching it rake in $500 million in excessive profits in China. But today — the old era dominated by Illumina has come to an end.

Though there is competition in the business world, rules and bottom lines must not be trampled.The bomb buried by Illumina has finally detonated at its own feet. The blow to confidence triggered by the "Unreliable Entity List" is devastating for Illumina. A series of concerns regarding Illumina's "reliability" and "security" will persist, with Chinese manufacturers "rising collectively against it," making the "gradual disappearance of its world" an irreversible situation.

Amid the rumble of power restructuring, echoes of an era's transformation resonate. This is a story about technology, markets, and national strategy, witnessing the rise and fall of a multinational giant, and recording China's industrial journey from its stumbling beginnings to a powerful turnaround.

/ 01 / Internal and external troubles, the giant's decline is irreversible

"Twilight of the Giants."

Founded in 1998, Illumina is undoubtedly a giant in the global gene sequencing field. However, the past few years have been fraught with turmoil: the failed acquisition of an early screening giant resulted in significant losses, and more importantly, changes at the corporate level have proven even more challenging.

On one hand, the entire overseas management team, from CEO to CTO and CMO, has been replaced; on the other hand, there has been a complete overhaul of the China team, with the position of the head of the China region remaining vacant for nearly half a year until a new leader was appointed in February last year.

Illumina's Performance Highlights the Challenges It Faces. In 2024, the company's full-year revenue was $4.372 billion, a 2.9% decline compared to the previous year, marking the second consecutive year of revenue decline. Moreover, in 2024, Illumina reported a loss of $1.223 billion.The loss-making state has persisted for three years, with the total accumulated losses approaching $7 billion.

From management turmoil to declining performance, this former powerhouse is plagued by internal and external challenges, encountering a "midlife crisis" amidst the changing times. Its experience in the Chinese market fully reflects this point.

Illumina Faces Headwinds in the Chinese Market, Which Is No Longer News. As Mentioned Earlier,Its total revenue in China has been declining for three consecutive years, with the rate of decline reaching approximately 20% in the past two years.

This is not an overall shrinkage of the Chinese market, but rather a continuous weakening of Illumina's influence, with market share data serving as the best proof.In 2020, Illumina once held a market share as high as 59% in China, but by the first three quarters of 2024, it had dropped to 13.59%.

The reason behind it is not difficult to understand.

On the one hand, domestic companies represented by MGI Tech are rising strongly. Chinese brands not only match or even surpass product performance, but also possess comprehensive advantages in terms of price and service, gradually eroding Illumina's market share has become inevitable.

On the other hand, data security issues have been plaguing Illumina. The FDA and CISA exposed several of its devices with critical security vulnerabilities, posing a risk to genetic data security. This issue has led some data-sensitive buyers to avoid Illumina.

Moreover, the policy support for domestic brands is also increasing. For example, in 2021, multiple ministries jointly issued the "Guidelines for the Examination and Approval of Imported Products in Government Procurement," requiring 100% domestic procurement of second-generation sequencing platforms, making the momentum of domestic brands even more aggressive.

Under the influence of various factors,The reshaping of the market landscape has basically entered an irreversible stage.Illumina's business logic in China has undergone a significant shift.

First, for government procurement orders sensitive to data properties, there has been a continuous decline.In January 2025, according to the public data from the China Government Procurement Network, among the winning bids for over 20 sequencing instruments, Illumina only secured 2 wins.

Secondly, commercial users are turning to domestically produced products.According to public information, companies such as Geneseeq Technology, Burning Rock Biotech, HaploX Biotechnology, 3D Medicines, Vision Medical Laboratory, MicroFuture, Novogene, Oebiotech, Majorbio, LC-Bio, and Genecast Precision Medicine have all shifted to cooperate with MGI Tech.

This is also reflected in MGI Tech's market share. In the first three quarters of 2024, MGI Tech's market share has reached 55.05%, with installations continuously reaching new highs.

More fatally, the bomb buried by Illumina itself has exploded, and it has been included in the "Unreliable Entity List." This also means that the shrinkage of Illumina's business in China is inevitable.

/ 02 / Backlash hits former giant, its dominance fading

After Illumina was added to the "Unreliable Entity List," a laboratory director said it was a welcome move, stating that this vampire should have been kicked out long ago.

"The Unreliable Entity List" was proposed by the Ministry of Commerce in 2019, aiming to "address changes in the international economic and trade environment, protect the legitimate rights and interests of domestic enterprises, and safeguard national security."

In the past few years, only more than 20 enterprises have been included in the list, all of which are companies that have crossed the red line, including those related to Taiwan or Xinjiang issues. This time, Illumina was included in the "Unreliable Entity List," without specifying the exact reasons. However, from the statement, the issue seems to be significant:

There exist violations of normal market trading principles, disruption of normal transactions with Chinese companies, and discriminatory measures against Chinese enterprises.

In short,Illumina Also Crossed the "Red Line."Reaping the dividends of the Chinese market yet standing against the industry and even national security, Illumina is bound to face a backlash.

The Ministry of Commerce stated,"Will take corresponding measures against the aforementioned entities in accordance with relevant laws and regulations."According to the regulations, Illumina may face one or more of the following measures:

(1) Restricting or prohibiting its engagement in import and export activities related to China;

(II) Restricting or prohibiting its investment in China;

(III) Restrict or prohibit the entry of its relevant personnel, transportation vehicles, etc.

(IV) Restricting or revoking the work permits, stay or residence qualifications of relevant personnel within China:

(5) Impose a fine of a corresponding amount based on the severity of the circumstances:

(6) Other necessary measures.

From these measures, Illumina has effectively been declared "offline" in China. The resulting crisis of confidence will undoubtedly be devastating for Illumina, and the subsequent butterfly effect should not be underestimated.

On the one hand,Government Procurement Orders Likely Have Nothing to Do with Illumina Anymore.After all, Illumina, which has been included in the "Unreliable Entity List," is overly "sensitive."

On the other hand,Companies will be more cautious about collaborating with Illumina.After all, the potential impact of collaborating with them could be that the cooperation project is forced to interrupt, affecting the project progress and the publication of scientific research results.

Moreover, institutions and enterprises in China have other options. As mentioned above, domestic brands such as MGI Tech, whether in terms of service capabilities or product performance, have already reached a "comparable" or even "better" state.

We have also seen that currently, Chinese brands have the capability and willingness to address the concerns of domestic institutions/companies. For example, the leading company, MGI Tech, not only quickly launched a trade-in subsidy policy but also offered free trials:

MGI Tech will offer matching equipment or reagent discounts based on the user's replacement model and frequency of use, and provide free trials and demo experiences.

There are corresponding policies for old machine deductions, and full consideration has been given to the user experience, which sufficiently demonstrates the confidence and sincerity of domestically-produced leading companies in their expansion.

Sequencing equipment users are also "rising up," following the major trend of "substituting domestically-produced equipment." An industry insider stated,"We have long switched to MGI Tech. We have been suffering from Illumina for a long time, and its decline in China has been an inevitable trend."

It is clear that China's gene sequencing industry, once firmly controlled by Illumina, is now at a crossroads of transformation. A new era of gene sequencing, dominated by local forces, and characterized by greater security, efficiency, and accessibility, is rapidly approaching.

/ 03 / A Stunning Comeback: China's Technological Breakthrough Shines Globally

Illumina's development trajectory, like a multi-faceted prism, reflects the tortuous journey of China's biotechnology sector breaking through difficulties and moving forward amidst challenges, also making the roadmap for future development increasingly clear.

"Breaking through bottlenecks" has always been the goal for all practitioners in the biotechnology field, as it is both a consideration of national strategic security and a necessity for industrial development.

When we focus on the industry level, we will find that the rise of domestically produced alternatives is far more than just an inspiring slogan.

Once, Illumina stood as an unshakable mountain, leveraging its first-mover advantage and technological barriers to firmly control the discourse of the global gene sequencing market. Faced with international giants like Illumina, Chinese companies often found themselves in a passive position during business collaborations, lacking bargaining power and being forced to accept unreasonable terms and exorbitant prices.The sense of helplessness and frustration from being "strangled" is deeply etched in the memory of every practitioner.

Moreover, their product prices are exorbitant,Allow many scientific research,HealthcareInstitutions are deterred, and the application scope is also limited to a few high-end fields, severely restricting innovation.

As mentioned above, in the industry"Bitter Illumina for a long time."

But it is precisely this pressure that has aroused the fighting spirit of Chinese companies. Do you remember the darkest moment when BGI was forced to the brink by Illumina's patent war? After three years of relentless resistance, MGI Tech compelled a U.S. court to award $325 million in damages.

Today, the innovative achievements of Chinese enterprises,Not only has it significantly reduced the cost of gene sequencing, but it has also expanded application scenarios at an unprecedented speed, driving the development of the industry.Once a sky-high cost sequencing project, it has now entered an affordable era, with the reduction in cost allowing more patients to benefit.Precision Medicine's welfare. For example, in some remote area hospitals, with the help of domestically produced sequencing technology, early screening for hereditary diseases has been achieved, buying precious treatment time for patients.

This achievement represents not only a commercial success for domestic companies in China but also a significant contribution to the well-being of the general public. It has brought gene sequencing technology down from the lofty "ivory tower" and made it truly accessible to the masses.

And standing at a higher latitude, when we start from the perspective of national strategy, we will findThe vigorous development of China's biotechnology sector is also a crucial source of confidence in the competition between major powers.

This sanction against Illumina represents a rare case of China imposing sanctions on foreign enterprises in the biotechnology sector. It can be said that, fromMGI Tech, with its own strength, breaks through the encirclement of Illumina and resists the groundless suppression from the United States. We have finally ushered in the "deepseek moment" in China's life science and technology field.

Facing the challenges and opportunities presented by the current era and market environment, we look forward to the continued rise of China's innovative forces, not only leading but also reshaping. This is the call of the times and the relentless pursuit of Chinese innovators.

       Title: The "Curse of the Heart" in China's Life Sciences, Finally Broken!