Hailed as the "domestic gene sequencing leader", "gene sequencing Tencent" of the U. Gene, today formally passed the meeting, and is expected to be logged into the A-share market within a month.
Highly touted by the investment community, UBM is going to knock on the door of the secondary market. A reporter from 21CBR has confirmed that the Securities and Futures Commission (SFC) will release an announcement of the GEM Board's issuance review committee meeting tonight, and UBM has formally passed the meeting this afternoon.
Shenzhen Huada Genetics Co., Ltd. submitted a prospectus shows that the company intends to issue no less than 40 million shares in the Shenzhen Stock Exchange GEM, raising 1.732 billion yuan, the funds raised will be used for precision medicine service platform upgrade project and other five project construction. According to the current pace of the issuance and review, UWG is expected to land on the A-share market within a month.
HUAGI's listing course is quite a bit of twists and turns. 15-16 years, the first time the IPO submitted to the end of the suspension of the review, the Securities and Futures Commission shows that the suspension of the situation: the application documents are not complete, etc. lead to the review process can not continue.
In March of this year, Uagenics once again hit the IPO . Public information shows that the queuing serial number of Uagena once in a short period of time from the 65th jumped to the 27th. March 14, the Securities and Exchange Commission website disclosed the Uagena updated prospectus.
However, that evening the SFC issued "59 questions" "feedback" attracted much discussion. Opinions show that the SFC on the company's independence, competition and multiple reorganization *** count 59 normative and disclosure questions to the UWG, the listing process has been put on hold again.
According to the prospectus,the company's current total share capital of 360 million shares, the estimated issue price of about 43.3 yuan, a simple calculation, Huawei Gene's current total valuation of about 15.6 billion yuan. This in the capital world and tencent, huawei and called "shenzhen three treasures" biological company again to the front, and along with the gene sequencing clinical application of the growing popularity of the biotechnology market is about to usher in the scale of the outbreak.
Pregnant women have become the mainstream beneficiaries of gene sequencing
HUA Genetics did gene sequencing, this time planning to list the four major business sections are related to gene sequencing services, but not including the research and development of sequencers, production and sales, the equivalent of the sequencing services business is just a packaged listing. which, reproductive health services accounted for the highest proportion of 2016 revenue amounted to 929 million yuan, accounting for 54.62%, and there is an annual increase of more than 50 or more, is the core business of the main body of this listing.
Revenue composition of the main business disclosed in the prospectus
Growth over the years reflects the soaring demand for gene sequencing by C-users, with "non-invasive prenatal genetic testing" being the earliest industrialized mass genetic product in the field. The non-invasive prenatal genetic testing is the first mass genetic product to be industrialized in this field. UW Genetics was the first to launch this technology in 2010. By collecting peripheral blood from pregnant women and extracting free DNA from the plasma, we can use sequencing methods to analyze the risk rate of chromosomal aneuploidy in the fetus.
China is a country with a high incidence of birth defects, with about 900,000 cases of new birth defects each year, including deafness, congenital heart disease and other neonatal diseases that are highly prevalent; and genetic testing can be used for prenatal screening of pregnant women, providing prenatal diagnosis of congenital defects and hereditary diseases. Pregnant women and families have become the main beneficiaries of this technology.
The growing sophistication of the technology and the year-on-year decline in costs are also driving the explosion of the user market. According to BBCRreseach, the global gene sequencing market is expected to exceed $11 billion in 2018, with a compound annual growth rate of 21.2%, and China is one of the fastest growing countries. With the liberalization of the two-child policy, UWG is expected to maintain high growth in the coming years.
The market is about to explode and the darkness before the dawn
The pre-disclosure of the IPO of UWM also triggered the concept of the stock is not a small vibration. March 21, ST Tianyi hit a new high on the listing of the day, Anke Biological suspended for several days, the gene sequencing industry upstream and downstream of the upstream and downstream of the up to 26 stocks thus benefited. At the same time, UW's main competitor in the field of fertility services, Berry and Kang are also seeking to shell the listed company ST Tianyi, and UW Genetics to compete for the domestic "first share of gene sequencing".
Interestingly, Berry Harmonic, Novozymes, and many other counterpart companies were founded by former UW Genetics employees, and these companies are jokingly referred to in the industry as "Huaxiao". According to incomplete statistics, there are more than 600 companies involved in the concept of genetic testing. In the three major business segments of UW Genetics (reproductive health services, basic research services and complex disease services), each of which is faced with a large number of "Huaxiao" companies in pursuit.
The Flush Quotes Center today shows
Throughout the global gene sequencing market, the upstream instrumentation manufacturing is monopolized by a few European and American companies such as illumina, lifetech, and so on, and the "flames of war" of the domestic gene sequencing market "The domestic gene sequencing market is mainly burned in the middle and lower reaches of the service side of the barriers are not high. Under the influence of several favorable factors such as technological breakthroughs, cost reduction, and policy relaxation, the competition is bound to intensify while the market explodes.
To this end, UBM spent $117.6 million in 2013 to acquire Complete Genomics (CG), a U.S. company with complete human genome sequencing technology, thus becoming one of the few domestic companies with the qualification to produce gene sequencing instruments.
In addition, in addition to focusing on reproductive health and drug development genetic testing, UW also has multiple layouts in basic scientific research, agriculture, marine and sports and other areas, to build its own ecosystem in a whole industry chain approach, trying to use this to meet the first dawn on the eve of the upcoming outbreak of the market.
The fierce competition at the middle and lower ends of the industry chain has also made the seemingly high-quality biotech industry look like the "Foxconn model". On Zhihu, issues such as low wages and backwardness of the system of UBM have also triggered discussions among netizens.
In fact, the gene sequencing industry is indeed a technology-intensive industry, but with the application of many areas of the ground, the huge labor and production costs also come. In the face of intensifying competition and industry problems, gene sequencing companies pursued by capital still need to avoid their own minds "overheating".
We've got a long way to go for UW and "Huaxiao"
The current red-hot trend won't happen overnight either. For technical safety reasons, the State Food and Drug Administration and the Family Planning Commission twice stopped the clinical application of gene sequencing in 2014, and the industry once faced a crisis. Since then, the Health Planning Commission has gradually started pilot work in this field, and precision medicine has been formally incorporated into the 13th Five-Year Plan, rising to a national level strategy.
In January this year, the "Thirteenth Five-Year Plan" for the development of the biological industry will be included in the genetic testing of bio-industry projects to benefit the people, but also directly promote the listing process of genetic sequencing companies such as UW Genetics, Berry and Kang.
The gene sequencing industry belongs to the field of strong government regulation, and the policy shift largely determines its development trajectory. However, even after crossing the hurdle of policy, biotech companies represented by UBM still face considerable challenges.
HUAGI's scientific research capability is leading in the industry, and it is one of the most important enterprises in the domestic genetic research field and in undertaking foreign technology export: It has been selected several times as one of the top 5 Chinese scientific research institutes in the world's top academic journal Nature, second only to the Chinese Academy of Sciences (CAS), the University of Science and Technology of China (USTC), Tsinghua University (Tsinghua), and Peking University (PKU); and it has initiated and participated in a number of large-scale international genomics In September 2016, the National Gene Bank was completed in Shenzhen, operated by the UW Genome Research Institute, and is the fourth national gene bank in the world after the United States, Japan and the European Union.
Shenzhen National Gene Bank
However, how cutting-edge scientific research results can be transformed into clinically applicable genetic testing technology and truly benefit people's livelihood is a major problem for the gene industry at the starting stage. Take the most popular prenatal genetic testing as an example, the cost of a single test in China is still generally between 3,000 and 5,000 yuan, and most of them are not in the local health insurance system, and the price is still a realistic reason for many ordinary Chinese families to be rejected.
The fast pace of cutting-edge technology requires extremely high computational power support, which also puts demands on back-end technical support.In October 2015, UW Genetics, together with AliCloud and Intel, jointly established the Precision Medicine Open Cloud Platform, which aims to accelerate the diagnosis and treatment time of gene sequencing. High-performance computing platforms and artificial intelligence underlying technology have accelerated the industry development of precision medicine, but the weeks-long testing and diagnosis time at this stage does not meet the needs of the industry as well as the aftermarket.
For UW and its many spin-offs, how fast they can run in the future is not up to them alone, but depends on policy favoritism, concerted promotion by related industries, and broad acceptance by the audience. The success of this listing may increase China's voice in the gene sequencing industry chain, but UW and "Huaxiao" still have a long way to go.