Co-Stone leads $28m Series B for Chinese gene sequencer
Gene+ Technology, a Chinese provider of gene sequencing services used to support cancer diagnoses, has raised RMB200 million ($28 million) in a Series B round led by Co-Stone Asset Management.
BGI Group, the country's leading genetics research business, and VC investors such as Volcanics Venture and Green Pine Capital Partners also took part in the round.
Founded in 2015 by senior executives from BGI, Gene+ focuses on next-generation sequencing (NGS) diagnostics solutions. It has more than 400 staff in Beijing, Suzhou, and Shenzhen.
The company helps around 400 hospitals, pharmaceutical companies, and research institutions conduct genetic tests, which has enabled it to build up a tumor gene library comprising more than 120,000 datasets. In addition, Gene+ manufactures gene sequencing devices at a facility in Suzhou. Last month, it received regulatory approval to put two sequencers in production.
“The gene mutation mechanisms of tumors are very complicated, which makes it a top challenge for the gene sequencing industry,” said Ling Yang, Co-founder of Gene+. “We all know that the next wave of growth will come from the oncology diagnosis, and that’s why we are focusing on this area.”
BGI group is the dominant force in China for the genetic tests. It has led Gene+'s Series A and the core technology of the company's two approved sequencers comes from BGI. However, Gene+ differs from BGI in that is concentrates on oncology applications.
NGS and precision medicine involves the analysis of genomes to help doctors develop treatments tailored for unique genetic profiles. Companies usually sell access to their big data ecosystems – enabling drug developers to study how genes function and relate to different diseases – and provide testing services or devices.
Numerous Chinese start-ups are active in the space. In February, GIC Private led a RMB850 million ($125.5 million) Series C round for Burning Rock, a cancer diagnostics start-up that works with hospitals on products based on DNA sequencing analysis. Other PE and VC-backed sequencing and testing businesses include WuXi NextCode, 23Mofang, Prenetics, and Annoroad.
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