Burning Stone Medicine Goes to U.S. IPO, Plus Code Research and Development Grabs Hundreds of Billions of Cancer Early Detection New Track

Rushing away 205 billion cancer early detection Blue Sea,half of enterprises valued or derived from the early inspectionsince its establishment, Burning Stone Medicine has completed a total of 240 million U.Sdollars of multi-round financingHowever, its follow-up product development and sales still need a lot of financial support, which may be one of the reasons for its U.SIPOAccording to the prospectus, Burning Stone Medical plans to invest the IPO funds in the following purposes: First, the research and development of cancer early examination technology;, cancer early detection is the "top priority" of stone medicine research and development, once its pan-cancer early detection-related products are approved to market, will become the main growth point of future businessat present, China's early cancer test mainly for 50 to 75 years old high-risk population, detection of breast cancer, lung cancer and colorectal cancer and other cancer, while liver cancer, stomach cancer, esophageal cancer and other high-risk disease strains in China's early detection market is still blank, the urgent need for accurate early detection of cancer technologyChina Insights Consulting industry report predicts that China's total market potential for early cancer screening will reach RMB205 billion by 2030unlike imaging techniques such as low-dose CT, genetic testing companies usually take a "one-tube blood cancer" approach to early detection, i.eliquid biopsyThe subject siphone dilastated a tube of peripheral blood, by detecting biomarkers such as tumor source nucleic acid in the plasma, early detection of a variety of cancer or precancerous lesions, and tissue traceability to determine the site of the disease, and then timely interventional treatmentbecause liquid biopsy technology has only achieved real breakthroughs in recent years and reached clinical application levels, global head companies are mostly in the stage of research and development optimization and validation, such as Grail, Freenome and Thrive and other high-tech companies, burning stone medicine has been in the field of early cancer detection for nearly 4 years, and is now based on deep methylation sequencing and machine learning technology, the development of pan-cancer early detection-related productsThe early data, released in January this year, showed that the early test of cfDNA methylation was 90%, 89% and 66% of patients with liver cancer, colorectal cancer and lung cancer, respectively, with a 95% specificity in healthy subjects Based on the above data, Burning Stone Medical has carried out the largest prospective, pan-cancer early detection study to date, expected to include more than 14,000 cases of subjects, it is understood that the research investment of 180 million yuan, will be completed within three years of the pre-screening of pan-cancer early detection products technical optimization and clinical verification Once the product is approved for listing, stone-burning medicine's pan-cancer early detection products will seize this blue sea market, set up a moat From research and development investment and future market prospects we can predict, if the successful listing of stone medicine, half the valuation of enterprises should be its cancer early detection down the "Jiangshan." tumor NGS head player gene testing industry was once popular with capital, but in 2019, capital is systematically declining, the industry ushered in a reshuffle, gene testing companies from the previous technology accumulation into the data accumulation and product model stage, coupled with relevant regulatory policies, product standards, clinical application process gradually improved, require genetic testing companies to further do deep, fine, to avoid homogenization of competition In this context, the deep-cultivated industry for many years of enterprises to highlight the advantages the excellent performance of early cancer examination is not the only bright spot of stone-burning medicine, as the head player of this segment of the circuit of tumor drug gene testing, the main business and research and development direction of stone-burning medicine is divided into three fields: tumor NGS accompanying diagnosis, cancer early examination and genomic big data ecosystem in the gene testing industry, science and technology services, especially the storage sequencing platform services are labor-intensive, low market threshold, and clinical-level medical testing services such as non-invasive prenatal testing, tumor drug genetic testing and other clinical-level medical testing services, the market prospects are huge According to the prospectus, stone-burning medicine's revenues for 2017, 2018 and 2019 were RMB111.2 million, RMB208.9 million and RMB381.7 million, respectively, representing increases of 87.9% and 82.7% in 2018 and 2019 prospectus shows that stone-burning medicine has not yet achieved a profit, which is also the general situation of the domestic tumor NGS field gene testing company, because the market is still in its early stage, need to invest a lot of money for research and development Research and development accounts for a relatively large proportion of all expenditures in stone-burning medicine, with research and development investment of RMB105 million and RMB157 million in 2018 and 2019, respectively, and the proportion of revenue from marketing and sales expenses, administrative expenses and other expenses is decreasing year by year according to the prospectus of the , as of March 31, 2020, Burning Stone Medical has landed NGS testing in the country's top 44 hospital testing departments, which has brought it high growth in in-hospital business and a unique market share - in 2018 and 2019, hospital revenue has maintained a substantial increase year-on-year, reaching RMB033.2 million, up 209% and RMB87.7 million, or 164% by the end of March 2020, burning stone medicine book capital of 722 million yuan, including cash and long-term and short-term investment source of : of the Translational Medicine Network