***157, see below for details.

The gene sequencing industry is developing rapidly, with second-generation sequencing as the mainstream technology. Now, the generation of gene sequencing technology due to lower throughput, sequencing time is longer, can not meet the needs of research applications, to high-throughput low-cost features of the second generation of sequencing technology for the current most widely used sequencing technology, sequencing time compared to the generation of technology is greatly reduced. Gene sequencing, as an important part of precision medicine, has been developing rapidly in recent years with the advancement of technology and the decrease of cost, growing from $794 million in 2007 to $4.5 billion in 2013, with a compound growth rate of 33.5%, and is expected to maintain rapid growth in the next few years, reaching $11.7 billion in 2018, with a compound growth rate of 21.1%.

The upper reaches of the industry chain are dominated by European and American companies, while Chinese companies are mainly concentrated in the middle and lower reaches of the sequencing service industry, with a tendency to extend upstream. At present, China's gene sequencing enterprises are mainly concentrated in the middle and lower reaches of the industry chain in the sequencing service industry, while the technical threshold of the upstream gene sequencing equipment and consumables suppliers is relatively high, which is basically monopolized by foreign-funded enterprises. As the key technology of gene sequencing is still long in the hands of European and American gene sequencing equipment and reagent consumables manufacturers represented by Illumina, China's gene testing industry does not have complete pricing power, and is subject to the constraints of European and American enterprises everywhere. In order to change this situation, China's enterprises began to extend the industrial chain to the upper reaches.

Gene sequencing application market space is vast, China is currently divided into four main directions. China's State Food and Drug Administration approved the downstream gene sequencing clinical applications are divided into four categories, respectively, genetic disease diagnosis, prenatal screening and diagnosis, preimplantation embryo genetics diagnosis and tumor diagnosis and treatment. Non-invasive prenatal screening for the more mature and consumer acceptance of the highest degree of product, and with the liberalization of China's two-child policy, the market will have further room for growth; tumor diagnosis and treatment is the most potential for the development of the application of the market, cancer has become the second leading cause of death in the world, and with the arrival of China's aging society, the incidence of cancer in China will be further increased, second-generation sequencing in the neighboring areas of the tumor will have great potential for development. The application of second-generation sequencing in the tumor neighborhood will have great potential for development.