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Genetron was founded by Dr Yan, a leading academic researcher in the field of glioblastoma (GBM, one type of brain cancer). Dr Yan’s experienced helped the development of IDH1/TERT gene assay for the GBM indication dramatically due to the vast amount of data accumulated during Dr Yan’s work.
In addition to the IDH1/TERT assay which was approved by the NMPA in 2017, the company also has two gene sequencing instruments approved by the NMPA, namely Genetron 3D which is a digital PCR system for the reading of low-frequency gene alteration, and Genetron S5 which is a next-generation sequencing (NGS) platform.
The company’s key products in the pipeline include lung cancer 8-gene tissue-based testing assay, liquid biopsy-based ctDNA lung cancer assay, liver cancer early screening assay, and high throughput OEM NGS platform (Genetron S2000).
Although the company is trying to sell its expertise on data-driven liquid biopsy (vs tissue biopsy) for tumor profiling and early screening, we think the company has yet to prove its expertise outside the area of brain tumor. The company’s revenue is mainly derived from the LDT (laboratory-developed tests) that is conducted by Genetron’s own labs whereas the company hopes to sell its assays and systems to hospitals.
Compared to other major indications in China, gene testing assays for brain tumors is a very niche market with a small incident of only 5-8 per 100,000 people that will not be able to justify the company’s valuation. For other major indications, there are competitors who have already received NMPA approval for their gene testing assays for clinical use.
We also examine the company’s management and investors. We are of the view that the quality of the company’s management and its investors is just OK. Reading the prospectus leaves a number of questions to ask the company’s management during the deal marketing.
Genetron (泛生å) Pre-IPO - Expertise to be proven outside brain tumor
Genetron, a China-based precision oncology company, plans to raise up to USD 100 million to list in the US.Genetron was founded by Dr Yan, a leading academic researcher in the field of glioblastoma (GBM, one type of brain cancer). Dr Yan’s experienced helped the development of IDH1/TERT gene assay for the GBM indication dramatically due to the vast amount of data accumulated during Dr Yan’s work.
In addition to the IDH1/TERT assay which was approved by the NMPA in 2017, the company also has two gene sequencing instruments approved by the NMPA, namely Genetron 3D which is a digital PCR system for the reading of low-frequency gene alteration, and Genetron S5 which is a next-generation sequencing (NGS) platform.
The company’s key products in the pipeline include lung cancer 8-gene tissue-based testing assay, liquid biopsy-based ctDNA lung cancer assay, liver cancer early screening assay, and high throughput OEM NGS platform (Genetron S2000).
Although the company is trying to sell its expertise on data-driven liquid biopsy (vs tissue biopsy) for tumor profiling and early screening, we think the company has yet to prove its expertise outside the area of brain tumor. The company’s revenue is mainly derived from the LDT (laboratory-developed tests) that is conducted by Genetron’s own labs whereas the company hopes to sell its assays and systems to hospitals.
Compared to other major indications in China, gene testing assays for brain tumors is a very niche market with a small incident of only 5-8 per 100,000 people that will not be able to justify the company’s valuation. For other major indications, there are competitors who have already received NMPA approval for their gene testing assays for clinical use.
We also examine the company’s management and investors. We are of the view that the quality of the company’s management and its investors is just OK. Reading the prospectus leaves a number of questions to ask the company’s management during the deal marketing.
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Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ke Yan
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