Genetron Snags $71M for Genomics-Oncology Services

According to dealstreetasia.com, Beijing-based Genetron, which employs gene detection for cancer treatment, has completed a new funding round at over 500 million yuan ($71 million), led by global healthcare-focused investor Vivo Capital, CICC Healthcare Investment Fund, a healthcare investment vehicle of China's CICC Capital, and Alexandria Venture Investments, the venture capital arm of U.S. real estate investment trust Alexandria. Chinese healthcare fund Highlight Capital (HLC) and Genetron's existing shareholders also participated in the new round.

Proceeds from the new round will be used to finance the development and commercialization of products in three major areas: early detection of cancers, cancer diagnosis, and monitoring, as well as pharmaceutical enterprise services, according to the statement.

Genetron raised more than 400 million yuan ($57 million) in a Series C round from China-based investment fund V Star Capital in January 2018. In September 2016, the company also closed a Series B round worth hundred millions of yuan from New Horizon Capital, Chinese biotech firm Vcanbio Cell & Gene Engineering Corporation and others.

Genetron is among a slew of companies in China's growing genetic testing market, estimated at 10.59 billion yuan ($1.51 billion) in 2018 with a consumer base of 1.4 million population, according to iiMedia Research. The market is projected to hit 15.86 billion yuan ($2.26 billion) by 2020.

Genetron, founded in 2013 and fully known as Genetron Health (Beijing) Co. Ltd., specializes in the research and development of cancer precision medicine in China. The company offers cancer researchers and healthcare providers products and services, including risk assessment, early screening, molecular diagnosis, medication guidance, and prognosis monitoring.

It operates facilities worldwide totaling over 10,000 sqm, with two research and development centers in China and the US, respectively, and four clinical diagnostic laboratories across China. The company also has a team of experts covering cancer genomics, bioinformatics, pharmacology, and clinical pathology.

In the field of diagnosis and treatment, its products and services cover a spectrum of cancers, such as brain, lung, liver, bladder, breast, stomach, and thyroid.

Founded in 1996, Vivo Capital is a healthcare investment firm focused on investing in and building high-quality companies. Vivo employs a unique multi-pronged strategy of identifying and working with companies with promising development and commercial-stage products. Since inception, the firm has raised over $4 billion and backed over 200 private and public portfolio companies. 

CICC is China's first joint-venture investment bank and an international best practices pioneer. Since its inception in 1995, CICC has established a full-service business model offering investment banking, equities, FICC, wealth management and investment management, all on the basis of strong research coverage.