On February 14, 2019, Burning Rock held the signing ceremony and announced the closing of the Series C financing totaling RMB 850 million. The financing was led by GIC, followed by LYFE Capital, CMB International Capital, Lilly Asia Ventures (LAV), Sequoia Capital China and T&Brothers Capital. This is another meaningful financing round after Burning Rock completed the RMB 300 million Series B financing in 2016 (Sequoia Capital, LYFE Capital, CMB International Capital and Legend Star).
The proceeds will primarily be used for early cancer detection product development and sales and marketing force expansion for the companion diagnostics business. Burning Rock will continue to lead cancer genetic testing industry in China, build an international leading tumor precision medicine brand and allow more people to benefit from genetic testing. The signing ceremony was attended by the investor representatives including, Mr. Goh Chin Kiong, Co-head of GIC's North Asia Direct Investment Group for Private Equity, Mr. Zhao Jin, founding partner of LYFE Capital, Mr. Rong Jing, Executive Director of CMB International Capital Management (ShenZhen) co. LTD, and Mr. Shu Weilin, partner of T&Brothers Capital.
Founded in 2014, Burning Rock focuses on NGS (Next-Generation Sequencing) diagnostics solutions for precision medicine in oncology. Currently, it has three core businesses: cancer patient companion diagnostics, early cancer detection, and cancer genome big data ecosystem. Burning Rock maintains its leading position in innovative technology, clinical product design and quality control system.
Burning Rock's efforts and success in compliance have also been widely recognized. In 2018, Burning Rock-CTONG laboratory was one of the first laboratories to pass the technical review of 'NGS laboratory' of National Center for Clinical Laboratories, becoming the only clinical laboratory to have obtained all three official recognitions from China's NGS laboratory authority, US CLIA and CAP. In addition, Burning Rock obtained China's first cancer NGS reagent kit approval issued by NMPA (National Medical Products Administration).
The founder and CEO of Burning Rock, Mr. Han Yusheng said at the signing ceremony, 'Tumor precision medicine is based on precise diagnosis. As more and more new targeted drugs and immunotherapy are available in the market, NGS-based companion diagnostics has become essential for better cancer treatment solutions. The market has witnessed more than 100% CAGR in the past three years and the fast growth will continue in the next three years. On the other hand, early detection is the ultimate solution if we want to extend the overall cancer survival period and improve survival quality significantly. Thanks to the development of epigenetics and NGS, Burning Rock was able to develop early detection technology using DNA methylation assay based on NGS platform more than two years ago, and some promising progress has been made since. Meanwhile, due to the big data generated from precise cancer companion diagnostics, as the leader of this industry, Burning Rock has established genome big data ecosystem that connects doctors and pharmaceutical companies. The ecosystem will be likely to connect patients in the future. The new financing provides financial guarantee for Burning Rock's rapid expansion in the above three areas. We appreciate the recognition from our investors. '
Mr. Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said: 'As a long-term investor, we believe in the adoption of precision medicine in the future of cancer treatment and seek to work with leading players in the field to provide better treatment for cancer patients. Since its inception, Burning Rock has built a strong team with extensive experiences in R&D, sales and marketing. We hope Burning Rock to continue to uphold its standards and achieve more breakthroughs in cancer screening and diagnostics.'
Mr. Zhao Jin of LYFE Capital expressed his consistent support for Burning Rock, 'As an investment fund dedicated to medical industry in China and the US, this is the third time LYFE Capital has invested in Burning Rock, which demonstrates our confidence in the prospect of the company. In the past few years, we have seen the progress and success of Burning Rock as well as the vision and ability of the founder Mr. Han Yusheng and his core team. Burning Rock is a promising cancer NGS diagnosis company and will enjoy long-lasting success.'
Mr. Rong Jing of CMB International Capital also recognized Burning Rock's achievements over the past few years, 'Burning Rock enjoys technological advantages and has a diversified product portfolio, which satisfies clinical needs. Furthermore, it always strives to make NGS diagnosis accessible to more patients. Currently, Burning Rock has established the highest industry standards in each respect. CMB International Capital participated both Series B financing and Series C financing without any hesitation. We believe that Burning Rock will surely maintain its leading position while advancing the development of China's tumor precision medicine, and it will grow into an international leading brand.'
About Burning Rock
Founded in 2014, Burning Rock Biotech is specialized in NGS (Next-Generation Sequencing) diagnositcs solutions for precision medicine in oncology. Thus far, Burning Rock has developed 32 products for different cancer types and clinical applications.
Besides providing NGS test services in an LDT model, Burning Rock also pioneers in providing one-stop NGS platform solutions and enabling high-quality NGS tests at hospitals' pathology labs, which will benefit more patients in the long run. With the first NMPA (National Medical Products Administration)-approved NGS kit in China, strategic collaborations with Agilent, PerkinElmer, Illumina, Qiagen, and numerous pharmaceutical companies, Burning Rock is decicated to developing innovative and reliable NGS diagnostics products to benefit cancer patients.
GIC is a leading global investment firm established in 1981 to manage Singapore's foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests through funds as well as directly in companies, partnering with its fund managers and management teams to help world class businesses achieve their objectives. GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades. Headquartered in Singapore, GIC employs over 1,500 people across 10 offices in key financial cities worldwide. For more information on GIC, please visit www.gic.com.sg.
About Lilly Asia Ventures
Lilly Asia Ventures (LAV) is a leading biomedical venture capital firm, with offices in Shanghai, Hong Kong, and Palo Alto. Our vision is to become the trusted partner for exceptional entrepreneurs seeking smart capital and to build great companies developing breakthrough products that treat diseases and improve human health.
About LYFE Capital
Founded in 2015, LYFE Capital is a dedicated healthcare fund with $720 million USD assets under management. We are actively seeking healthcare companies with exceptional management teams and expansive vision geared towards global markets.
Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited+ ('CMBI') is an integrated financial institution providing comprehensive and professional services，wholly-owned subsidiary of China Merchants Bank ('CMB').