Promoting High-Quality Development of the Industrial Chain · Venture Capital Record | Xiansheng Diagnostics: Helping Everyone with Precision Medicine

Since former U.S. President Obama proposed the "Precision Medicine Initiative" in 2015, the concept of precision medicine has rapidly swept the globe. Precision medicine applies interdisciplinary technologies such as modern genetics, molecular imaging, bioinformatics, and big data to achieve personalized and precise diagnosis and treatment.

Taking the field of oncology as an example, before the advent of precision medicine technologies, only about 20% of patients benefited from medications. However, with the continuous development of targeted therapies, genetic testing technologies, and immunotherapies, precision medicine in oncology is expected to change existing diagnostic and treatment models, greatly increasing the likelihood of clinical benefits for patients. Based on this, China's precision medicine industry is developing rapidly and is expected to achieve global leadership in specific subfields.

　　From standardization to precision.

Genetic testing technology is the foundational basis of precision medicine. Since 2001, with the innovative development of next-generation sequencing (NGS) technology, the cost of sequencing a human genome has decreased to one hundred thousandth of its original cost. The first human genome sequencing took 13 years, while now it can be completed in less than 20 hours.

The concept of precision medicine is gradually becoming ingrained in people's minds. Coupled with the rapid decline in the cost of genetic testing technology, the application of genetic testing in clinical settings has achieved comprehensive coverage in various scenarios such as early screening, companion diagnostics, precise medication, and prognostic monitoring.

Xiansheng Diagnostics was born in this context. As the only diagnostic company in China with a background in large pharmaceutical enterprises, Xiansheng Diagnostics has unique advantages in research and development, branding, and academic promotion—stemming from Xiansheng Pharmaceutical's rigorous drug development tradition, Xiansheng Diagnostics better understands how to truly meet clinical needs and can provide comprehensive solutions for healthcare professionals, medical institutions, and patients. Thus, Xiansheng Diagnostics has become a pioneer in China's integrated model of precision medicine diagnosis and treatment.

Precision medicine not only classifies diseases based on traditional symptoms and signs but also finds the most suitable drugs or treatment methods at the molecular level to achieve personalized treatment. In the past, many treatment plans were relatively crude and not precise, often using the same standardized treatment plans for patients with the same type of disease. However, with the rapid development of genetic testing technology, treatment plans for different patients with the same disease often vary. Helping healthcare professionals, medical institutions, and patients discover truly effective treatment plans is what Xiansheng Diagnostics focuses on.

"Our mission is to help everyone with precision medicine," said Ren Yong, Chairman and CEO of Xiansheng Diagnostics. "Taking the field of oncology as an example, as more and more innovative drugs and treatment plans become available, combined with the efficient application of precision medicine technologies in different cancer types and scenarios, each patient has the opportunity to choose a more suitable and precise treatment plan. This is the significance of the precision medicine industry and the original intention of Xiansheng Diagnostics."

　　Innovation drives precision.

Achieving a more suitable and precise treatment plan is not an easy task. "Precision" does not fall from the sky; it must be achieved through hard technological innovation.

Relying on the "National Key Laboratory of Translational Medicine and Innovative Drugs," Xiansheng Diagnostics insists on innovation-driven development. Since its establishment, it has maintained a relatively high level of R&D investment, with R&D expenses accounting for more than 40% of total revenue, and cumulative R&D investment nearing 400 million yuan. The company has undertaken one national major science and technology project, one national inter-research cooperation project, and more than ten provincial and municipal key research projects, boasting a cross-disciplinary R&D team of over 200 people, laying a solid foundation for long-term innovation.

Based on continuous technological innovation, in just five years since its establishment, Xiansheng Diagnostics has not only made comprehensive layouts in multiple application scenarios in the oncology field but has also rapidly developed in various fields such as the central nervous system, infections, and pharmacogenomics, becoming a rare cross-field leader in China's molecular diagnostics industry.

Taking the field of infections as an example, for critically ill patients with unknown pathogen infections, every hour of delayed diagnosis increases the mortality rate by about 6%. In this case, faster and more accurate testing is of great significance to clinical practice. "In the past, it might take 2-3 days to obtain results for unknown pathogen testing, and there was a high probability of not detecting meaningful results. Now, our shortest reporting cycle is only 6 hours, and the test results are more accurate. Undoubtedly, this is of great significance for clinical practice and for patients," Ren Yong said regarding the layout in the infection field.

　　Venture capital support accelerates development.

New medicine and life health is one of the "eight major industrial chains" in Nanjing. Starting in Nanjing, Xiansheng Diagnostics currently has a complete pipeline of innovative products and is one of the few companies in the industry that can provide comprehensive solutions for precision medicine, attracting continuous attention from professional investment institutions. In June 2021, Xiansheng Diagnostics completed nearly 600 million yuan in Series B financing, with investors including the Nanjing Innovation Investment Group.

Yan Peng'an, Investment Director of Nanjing Innovation Investment Group, stated: "New medicine and life health is one of the key landmark industries and main focus areas of the 'eight major industrial chains' in Nanjing. Through continuous technological innovation, Xiansheng Diagnostics has a rich pipeline of innovative products in treatment fields such as oncology, central nervous system, infections, and pharmacogenomics, including SimcereDxOnco500, the first pan-cancer companion diagnostic product in clinical trial stage in China in the NGS field. Precision medicine solution providers like Xiansheng Diagnostics will generate many synergies with upstream and downstream links in new drug development, medical services, etc., promoting the vigorous development of the new medicine and life health industry in the city."

"The investment of Nanjing Innovation Investment Group in Xiansheng Diagnostics represents Nanjing's support for technological innovation and the development of emerging industries. As one of the representatives of privately grown technology enterprises in Nanjing, Xiansheng Diagnostics also fully benefits from the optimization of Nanjing's business environment. Whether it is in-depth interpretation of policies, resource integration of upstream and downstream industrial chains, or comprehensive empowerment of post-investment services, Nanjing Innovation Investment Group has provided important support for the company's development," Ren Yong said.

"The rapid development of gene sequencing technology is helping us better and faster understand different disease fields, understand the changes in clinical needs in the era of molecular diagnosis, and what kind of response plans we should adopt, changing the status quo of clinical treatment and clinical research from a new, more precise, more comprehensive, faster, and more accessible perspective, thus truly realizing our mission—to help everyone with precision medicine," Ren Yong said.