Genetron Holdings Ltd. (Nasdaq: GTH) is a fast-growing precision oncology company in China that specializes in cancer molecular profiling. It delivers a suite of precision oncology services, including early screening, diagnosis, treatment recommendations, and patient monitoring. Its one-stop full-cycle cancer care platform connects patients with healthcare providers and uses AI and big data to manage the health profiles of patients. Genetron covers eight of the 10 major cancer types in China and is developing advanced next-generation sequencing (NGS) platforms and gene assays covering multiple prevalent cancer types.
The company provides comprehensive genomic testing across all cancer types, as well as focused gene panel testing services. For the former, Genetron operates one of the largest pan-cancer NGS panels in the world, according to research by Frost & Sullivan, cited in the prospectus. In early brain cancer detection, Genetron was the market leader in China in 2019, commanding a market share of 58.4%. Further, Genetron offers urine-based biopsy for urinary cancers, CSF-based liquid biopsy for brain tumor, NGS-based test Onco Thyroid, and other services.
Genetron was among China’s top three providers of molecular diagnosis of cancer based on next-generation sequencing (NGS) by revenue in 2019, commanding a market share of 11.6%. In addition, the company said it was No. 1 in the number of in-vitro diagnosis (IVD) products approved by the National Medical Products Administration (NMPA). Specifically, these are a digital PCR system, Genetron 3D biochip reading instrument, IDH1/TERT gene assays for glioma, Genetron S5, a medium-throughput NGS system, and Genetron S2000, a high-throughput NGS platform, together with the 8-gene Lung Cancer Assay (Tissue), an IVD assay product based on semiconductor sequencing.
In the second quarter of 2020, despite continued impact from the Covid-19 outbreak, Genetron recorded strong revenue growth, seeing a 40% year-over-year jump to $14.4 million. The majority of the revenue was generated from diagnosis and monitoring: Revenue form laboratory-developed tests (LDT) was $10.7 million (up 31%) and in-vitro diagnostic products (IVD) revenue was $2.6 million (up 381%).
Another portion came from the development services, at $1.1 million (up 27%). The solutions Genetron provides in this segment include biomarker evaluation for molecularly targeted therapy and immuno-therapy, clinical trial enrollment, companion diagnostics development and joint marketing post-drug approval.
Like most emerging-growth companies focused on development in the medical field, Genetron still incurs losses. For the second quarter, the company posted $400.9 million, or $2.41 per share, in net loss. This figure can be attributed to Genetron’s expenses in the run-up to the IPO in June and the losses are expected to narrow.
Genetron collaborates with hospitals, biopharma companies, medical examination centers, and local governments. In the second quarter of 2020, Genetron collaborated with 26 biopharma companies in China. That makes Genetron’s partnership network the largest among China’s NGS-based cancer diagnostic companies. The company plans to continue to rapidly expand its network.
Genetron debuted on the Nasdaq Global Market in June 2020 in a $256 million initial public offering, selling 16 million American depositary shares at $16 apiece. The IPO, secured by Credit Suisse Securities (USA) LLC and CICC, among other banks, was priced above the expected range and exceeded the initial estimates.
Genetron Health Investor Relations
Phone: +1 646-328-0687
Phone: +1 646-328-0687