The opening of the market has risen by 22%, how will the first share of domestic gene sequencers reconstruct the genetic market?

On September 9th, after waiting, Huada Zhizhi, a leading domestic gene sequencer enterprise, officially landed on the Science and Technology Board of the Shanghai Stock Exchange. The price was 87.18 yuan, the opening rose by over 22%, and the market value exceeded 40 billion yuan.

Founded in 2016, Huada Intelligent Manufacturing was split from Huada Gene, a master -level enterprise in the field of gene sequencing in China. Based on the core technology of gene sequencing introduced in the early stage, focusing on the instruments, equipment, reagents in the field of life science and biotechnology, The research and development, production and sales of related products such as consumables are one of the only companies in China and the world's three companies with high -throughput gene sequencing instruments.

In the field of gemstone in the crown of the crown of the Golden Spoon and anchoring the Crown of Genes, Huada Zhizhi was a star project in the first -level market since its establishment. It is popular with capital. , Huaxing New Economic Fund, National Capital, Huatai Zijin, Titanium Capital, Shanghai Competition, Cornerstone Capital, Shanghai Dingfeng, Guotai Junan Venture Capital, Guangfa Xinde, Dongzhi Capital and other well -known investment institutions.

But in fact, for investment institutions, it is not easy to make such a decision to invest in a high -end instrument manufacturer.

The person in charge of IDG Capital told the arterial network that in 2019, Wang Jian, founder of Huada gene, led a team to visit. A PPT impressed him. In this exchange, Wang Jian cut in from the micro -scale, talked about protein and embryos from DNA and RNA, from the newborn to the elderly, from the molecules to the cells, and the elderly and the elders' death and death. The need for China to control these tools in the development of the life science and technology industry, "the original one -hour lunch party was extended to nearly 3 hours."

Subsequently, the IDG team began to systematically judge the feasibility of Huada Intelligence. In this financing case, their interviews are 3 to 4 times the usual projects. Not only are they interviewing executives of Huada Intelligence, downstream customers, competitors, experts at home and abroad, and other distributions in South Korea, Spain, India, etc. Washington agents and customers. The research concluded by the team is that Huada's products are very reliable, and their patent protection is also very good. "We will judge that Huada will definitely have a rapid development in overseas markets in the future." The person in charge said.

Since its establishment, a series of independent R & D gene sequencies launched by Huada Intelligence have gradually broken the long -term monopoly of the imported brands on the upstream of the genetic technology industry chain under the barriers of intellectual property building built by the giants. The light of domestic goods in the field of technology has been re -explained to the laboratory automation business sector, bringing stable revenue growth.

After the listing, Huada Intelligence will undoubtedly have stronger capital strength and greater brand influence. How it will stir the global genetic market structure, which is obviously more worth looking forward to.

The downstream application of gene sequencing is a vast blue ocean

Gene sequencing is one of the most watched innovative technologies in cutting -edge science and clinical applications, and it is also a technology that is rich in golden tracks.

Specifically, gene sequencing refers to the process of interpreting the genetic password of DNA through sequencing equipment to determine the alkaline base arrangement order of DNA, and provide guidance for life science research, clinical diagnosis and treatment.

On the human gene sequence, it contains a lot of key information related to human diseases and health. For example, if there are 2057 genes in chromosomes 1, if abnormalities occur, more than 350 diseases including Parkinson's disease, Alzheimer's disease, mental retardation and cancer, etc. The inflammatory process and the highest renal transparent cell carcinoma in the kidney cancer are closely related to, and the mutation of chromosomal No. 21 may lead to the most common chromosomal disease in human beings, namely Don syndrome.

Because of this, gene sequencing technology has been rapidly promoted and iterated. In a very short period of time, a huge industrial chain based on gene sequencing and its consumables is upstream, sequencing and data services, scientific research and clinical scenarios as downstream. According to Illumina, the global genetic testing market capacity exceeds $ 20 billion.

At this stage, the main downstream application scenarios of gene sequencing are clinical testing and scientific research services. Among them, the gene sequencing project that directly serves the clinical section is the mainstream, which has spawned more than 10 billion or even 100 billion -level application markets. Specifically, fertility and tumors are the two most mature and widespread scenes in clinical gene sequencing.

First look at fertility. In this application scenario, the core product is non -invasive prenatal testing, that is, fetal chromosomal non -rectifier non -invasive genetic testing. This is a major breakthrough for prenatal testing technology for fetal chromosomal abnormalities, and it is also the first productized attempt for the second -generation sequencing technology to clinical application. This product will sequenize the DNA from the fetus in the blood of pregnant women, helping clinicians and patients, and judging whether the fetus suffers from chromosomal non -rectifier -related diseases in advance.

In addition, the application of gene sequencing technology in the givingom scene is also continuously extending. For example, in the application of auxiliary reproductive, in vitro fertilized embryo planting into the uterus, genetic screening is performed, and embryos that are not abnormal in chromosomal are selected into the maternal body, thereby improving the pregnancy success rate of IVF.

Followed by the application in tumors. The accurate diagnosis and treatment scenes related to the whole life cycle of the tumor are the hottest red sea and the widest blue ocean in the second -generation sequencing clinical application. Specifically, the application of tumor genes includes multiple scenarios such as diagnosis, early diagnosis and early screening, and recurrence monitoring. Compared with traditional clinical screening or diagnostic methods, the biggest advantage of the second -generation sequencing technology is higher accuracy and can capture more subtle changes and differences. Among them, the diagnosis is an important product after tumor treatment entering the targeted and immune precision stage. For example, tumor immunotherapy represented by PD-1/PD-L1 drugs has achieved better clinical effects than traditional therapy, but only about 20%to 40%of patients have responded to immunotherapy. Along with the diagnosis. In this process, the tumor based on second -generation sequencing is accompanied by diagnosis, which can be detected at a certain area of ​​the genome, and the complex variation is detected faster, providing a more accurate solution for clinical diagnosis and treatment.

Early diagnosis and early screening and recurrence monitoring are the applications in the application field of second -generation sequencing technology in the tumor diagnosis and treatment scene. The commercialization and productization exploration of each family is in the ascendant. For early or potential tumor patients, by determining the biomarkers represented by CTDNA methylation, the lesions can be found early without invasiveness, and follow -up and intervention can be started. For postoperative tumor patients, long -term effective disease progress monitoring is particularly critical, and the existing method of sensitivity and specific specificity, and poor forward -looking early warning prompts. In contrast, biomarkers such as CTDNA are short -period and strong in half -life, which can reflect the dynamic changes in tumor in real time. It is increasingly applied to clinical practice.

According to FROST & Sullivan analysis, the size of the domestic tumor second -generation order application market has increased from 700 million yuan in 2016 to 4.1 billion yuan in 2021, with a compound annual growth rate of 41.1%. It is estimated that by 2025 and 2030, the scale of this market will reach 14.9 billion yuan and 49.1 billion yuan, respectively, continuously showing a rapid growth trend.

In addition, in the application market of the entire gene sequencing technology, scientific research services such as service scientific research institutions, pharmaceutical companies, CROs, and third -party laboratories account for about 30 % of the market. This market competition is extremely fierce, but as a rigid demand for life science research, the national level has continued to increase investment, and the entire service market has maintained a steady growth. At the same time, gene sequencing technology is also being applied to many fields such as judicial appraisal, environmental pollution control, biological diversity protection, and agricultural and animal husbandry breeding.

Cost is still the restraint of genetic order applications

In the past few years, the demand for the middle and downstream of the gene sequencing industry chain continued to surge, allowing gene sequencing instruments to become the hottest tools in the field of life sciences. At the same time, this complicated and high -end equipment is also increasingly prominent in the efforts of people trying to reduce the cost of gene sequencing technology.

The price of gene sequencing is very high, which is the case for scientists, clinicians, and patients. Among them, there are both objective and subjective reasons.

At the objective level, the gene sequencing itself is very expensive. On the one hand, human genome data is huge and complicated, and it is a very difficult task to perform a complete sequencing and analysis of them. This data system contains genetic maps, sequence maps, and transcriptional maps, which corresponds to more than 6,000 genetic regions and more than 52,000 DNA fragments. Humans did not complete the drawing of human genome maps until 2003. This work lasted 13 years and cost more than 3 billion yuan. It was completed by scientists in 6 countries.

On the other hand, people have widely used gene sequencing this technology for a long time, and the gene sequencing instrument itself is still in the process of transitioning from elite equipment to mass equipment. Since the development, according to the principles, the mainstream sequencing technology has derived 4 categories, namely the first -generation sequencing (SANGER method), the second -generation sequencing (NGS), and the third -generation sequencing (real -time sequencing of SMRT) , Fourth -generation sequencing (nano -hole technology).

Although they are divided into intergenerations in the use of their names, there are no completely replacement between these gene sequencing technologies. Between the four generations of gene sequencing technology, each has its own advantages and disadvantages. For example, the accuracy of the SANGER method sequencing is very high, but the volume is very small, which takes a long time. The second -generation sequencing technology is very high, but the reading is very short. It may ignore some complex variants. The long -term reading is very long, which has expanded the realm of the application of gene sequencing technology, but the accuracy still needs to be improved. In general, each generation of gene sequencing technology is still in its own optimization iteration, and it also puts forward high requirements for the professional literacy of the operator. Of course, the current scope of second -generation sequencing technology is the widest.

The subjective reason for the precious semi -sequences is mainly due to its highly monopolized market pattern. For a long time, the global gene sequencer market was monopolized by Illumina, Life Technology (acquired by Thermo Fisher in 2012) and Roche, with the largest market share of Illumina. Data show that the continuous upgrading and promotion of the HISEQ series gene sequencers, Illumina continues to eat the remaining market share, gradually forming a unique situation. Since 2016, the gene sequencers and supporting reagents provided by Illumina have accounted for over 80 % of the global gene sequencing market. Therefore, in the procurement of the gene sequencer itself, it is difficult for midstream and downstream manufacturers to have room for premium. What's more fatal is that the imported brands of the gene sequencer market have monopolized the supporting reagents used by each boot. Monopoly gene sequencing manufacturers tend to continuously raise the price of supporting reagents to maximize income. The original Huada gene was also well versed in the suffering, and the idea of ​​independent development of gene sequencers was generated, so that Huada wisdom was made.

But it is not easy to break the monopoly. According to the early investment institution IDG capital of Huada Intelligence, in addition to the patents of chips, reagents and related sequencing methods, the gene sequencer really landed, and also requires cross -border integration of multiple technologies such as chemistry, photochemical, electromechanical. A relatively high degree of scientific instrument has high requirements for the comprehensive technical capabilities of the enterprise, which is why there are only a few gene sequencing instruments in the world in the world.

In fact, Wang Jian knew from the beginning that the high difficulty of the domestic sequencer. He once expressed to IDG Capital that he hoped that an institution could do this with Huada more long -term. "Because the independent R & D road of life sciences is bound to be not easy, it requires long -term patient investment and firm support for investment institutions, but once it is made, it has a great impact on the entire Chinese biotechnology industry and even the development of world sciences. Can create huge social value. "

Today, as Hua Da Zhizhi landed on the capital market, more and more gene sequencers that adapt to different application scenarios have been listed one after another, or it will change this cost constraint due to a single supply. change. Arterial Network has previously learned that in China, more and more gene sequencing service providers have begun to use imported and domestic dual -platform to improve efficiency. In the process of localization and internalization of gene sequencing services, the choice of supporting sequencers, the choice of supporting sequencers,, the choice of supporting sequencers, the choice of the matching sequencer. It has also deeply affected the future trend from the beginning.

How big is the winning noodles of Huada Zhicheng?

There is a fact that the market share of Huada Intelligence's listing in the global gene sequencer market is not high.

Data show that in 2019, the upstream market size of the global sequencing industry is about 4.138 billion US dollars, Illumina's market share is about 74.1%, related business revenue is 3.068 billion US dollars, Thermo Fisher's market share is about 13.6%, and related business revenue is 5.63 For 100 million US dollars, and Huada Zhifang's related revenue was about 145 million US dollars, accounting for only 3.5%of the upstream market share of the global sequencing industry. According to the prospectus, in 2021, the revenue of the gene sequencing instrument business sector of Huada Intelligent made is only slightly slightly increased compared to 2019. It can be inferred that its market position has not fundamentally changed.

However, we still look forward to the future potential of Huada Zhizhi.

First of all, Huada Intelligence has mastered the key technologies of gene sequencing research and development and production. It can be seen from the analysis of the previous section that this is very valuable. Specifically, the representative core technical package of Huada Zhizong in the sequencing field "DNBSEQ sequencing technology", "rule array chip technology", "sequencing instrument optical and electrical system technology", etc. represented The quality and reduction of sequencing costs have a significant advantage.

Secondly, the market space of the global market sequencer is large enough and the growth rate is very fast, which has left the opportunity for the new market demand for Huada Intelligence Card. According to the prospectus, the global gene sequencer and consumable market have maintained double -digit growth over the past few years. It is estimated that by 2030, the global gene sequencer and consumable market size will reach US $ 24.58 billion, and the domestic gene sequencer and consumable market size will also reach 30.39 billion yuan. In addition, from the analysis of this article, it can be seen that the application scenarios of gene sequencing are still expanding, which will continue to stimulate the needs of gene sequencers.

It is worth noting that in May 2022, Huada Intelligence and Illumina comprehensively reversed victory in a lawsuit on a patented technology of micro -flow -controlled sensor technology, which was compensated by 2.2 billion yuan. Two months later, the two parties reached a settlement, and Illumina will pay this compensation to the Hua Dazhi subsidiary CG, and in the next three years, each other will not sue patent infringement and violation of the US antitrust law or inappropriate competition in the United States. The other party and their customers do not claim the losses that the existing sequencing platform may cause. Since then, Huada Intelligent Building has developed to mainstream overseas markets such as Europe and the United States.

Third, for the new market demand, Huada Intelligence has the ability to respond quickly.From 2019 to 2021, the revenue of the laboratory automation business sector of Wasteen ’s Intelligent Manufacturing has grown rapidly.The reason behind this is that in order to cope with the new crown virus epidemic, Huada Intelligence quickly integrates technical resources to form a complete solution, and has quickly developed a series of new products such as the automated split-cup system MGISTP-7000, automated sample processing system MGISP-960, and continuedImproving the automation detection capacity of the equipment, while helping the epidemic prevention and control, it also brings performance growth.For Huada's intelligent manufacturing, listing is a milestone and a new starting point. This is the same for the domestic gene sequencing industry at this moment.We are still looking forward to providing more and better solutions for genetic technology to maintain health.

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