Healthcare Author:Mengyao Zhang Jun 20, 2020 12:01 AM (GMT+8)

Following Burning Rock’s IPO on Nasdaq a week ago, Genetro, another Chinese anti-cancer medical device provider, played the same move, heralding the start of the race to see who will lead the segment.

Genetic sequencing technology. Image credit: National Cancer Institute/Unsplash

Chinese cancer detection company Genetro (GTH:Nasdaq) successfully landed on the Nasdaq market at an issuance price of USD 16 and a valuation of USD 1.4 billion. Founded in 2013, this Being-based company has become one of the top players in Chinese diagnosis segments. 

This is the second Chinese anti-cancer company to hit the US public market, following Burning Rock Biotech (BNR:Nasdaq), China’s largest NGS (Next-genetic Sequencing) company,  last week.

Genetro mainly engages three business segments, including diagnosis and monitoring, early screening and services for pharmaceutical companies. Within six years since its inception, this Beijing-based company has continuously expanded its business, from brain cancer to multiple cancers, from fundamental research and market conversion to full-scale groups.

In the genetic sequencing industry, there are three primary clinical business modes, including the provision of IVD products to the hospitals, providing LDT services through centered labs or collaborative labs with hospitals and providing assistance to patients through doctors’ recommendations via team recruitment and agent distributions.

Now Genetro is taking on an ‘IVD+ LDT’ dual-mode. It has developed an HCC screen system to help detect early-stage cancer. Meanwhile, it has laid a deep deployment in medical research and development.

So far, Genetro has established cooperation with over 500 triple-A hospitals across China, close to 100 hospitals more than disclosed in the 2019 prospectus. More than this, it has over seven IVD products approved by the National Medical Products Administration (NMPA), the leading one in the domestic segment.

One noteworthy thing is that this medical device company realized a first-three quarter revenue of CNY 101 million, CNY 225 million and CNY 220 million in 2017, 2018 and 2019. The increase in revenue mainly comes from the diagnosis and monitoring business due to an improved penetration and growing market share. Beyond this, it is well expected to see a booming increase in early screening and pharmaceutical services as these two get more mature.

The most significant value provided by Genetro is to commercialize genetic sequencing within the national hospital network. By working with healthcare KOLs and organizing medical seminars and meetings, etc., this company has figured out a way to land this cutting-edge technology into business scenarios and promote this high-quality service to millions of customers.