On 9 May 2019, MGI announced its first round of fundraising, exceeding US$200 million—the largest capital raise in China’s genetic field in 2018. Investors included CITIC, Jinshi Capital, Songhe Capital and Dongzheng Capital.
Rapid Progress in Transforming the Industry
The gene sequencing industry has grown rapidly in recent years, attracting significant investment and enterprise activity. As sequencing costs decline, more people can access the benefits of gene sequencing, boosting the adoption of high-throughput sequencing systems in medical and scientific research. Since 2016, MGI has focused on breaking domestic bottlenecks in core sequencing technology, developing a series of life digital products, including leading sequencing platforms, reagents and consumables.
DNBSEQ™ Technology Breaks Upstream Monopoly
Gene sequencers are the upstream core of the industry, crucial for genetic testing, editing and synthesis. Historically dominated by a few foreign companies with strict patent protections, the market lacked alternatives. MGI developed advanced DNBSEQ™ sequencing technology through innovation and diverse technical approaches, challenging this monopoly.
DNBSEQ™ sequencing includes DNA single-chain cyclization and DNB preparation, patterned array chips, DNB loading, cPAS, double-end sequencing and base recognition algorithms. The system pumps DNA nanoballs into a patterned array chip, adds sequencing templates and reagents, and produces accurate base sequence data. cPAS technology is now implemented in MGISEQ-200, MGISEQ-2000 and MGISEQ-T7 sequencers.
Compared with other sequencing technologies, DNBSEQ™ combines low error accumulation with high signal density, improving detection accuracy and enabling efficient high-throughput sequencing. PCR-free library construction enhances SNP and InDel accuracy, while fewer label hops reduce sample misallocation.
To address long-read sequencing limitations, MGI launched stLFR (single-tube long fragment read) technology in 2018. The stLFR library requires only 1 ng of DNA, produces high-quality whole-genome libraries without pre-amplification, and detects structural variations that conventional libraries cannot. The single-tube process eliminates complex pipetting, enabling high-throughput automation and reducing costs.
Through acquisitions like Complete Genomics and securing core patents, MGI is gradually breaking the foreign monopoly in upstream gene sequencing. In 2018, comparisons by Oxford University’s Prof. Chen Zhengming confirmed MGI sequencing technology’s excellent performance.
Comprehensive Digital Life Products
Global gene sequencing is expanding from research to clinical applications, with the market projected to reach US$12.45 billion by 2022, including US$2.39 billion in Asia-Pacific. By 2020, China’s gene sequencing market reached 9.8 billion Yuan.
MGI has invested approximately 5 billion Yuan in R&D, with over 580 patents, including 80 PCT filings. Since 2015, MGI has released multiple sequencers, addressing both miniaturisation and high-throughput needs.
MGISEQ-2000: Supports dual-chip operation, produces up to 1080Gb offline data in 48 hours.
MGISEQ-200: Flexible, generates 60Gb offline data, completes 24 tumour samples in one day.
MGISEQ-T7: Global leader in output, producing 6Tb per day at PE150 in 24 hours, with a sequencing cost of just US$5 per Gb.
Over 1,100 MGI sequencers operate in 16 countries, generating 20Pb of data and contributing to over 300 scientific publications. Collaborations include the Institute of Chinese Medicine to create a high-throughput sequencer for Chinese herbal DNA barcodes.
MGI also developed the Sub-pixel Registration algorithm, enabling sub-pixel image accuracy and real-time processing with GPU acceleration, achieving 200x faster computation while improving base recognition. Antibody-mediated fluorescence binding further improves read accuracy.
Promoting Healthy Industry Development
Gene sequencing continues to evolve rapidly, requiring updated technology to understand and prevent disease. MGI is breaking the upstream monopoly, offering faster and more accurate sequencing, and supporting an open industrial ecosystem.
In 2018, MGI launched China’s first Sequencer User Program, providing reagents, training and technical support to enterprises and research institutions. Globally, MGI has extended the program across Europe and Asia-Pacific, establishing its presence in the international genetic sequencing market.
Looking Ahead
As the only Chinese company and one of three worldwide capable of mass-producing clinical high-throughput sequencers, MGI’s US$200 million funding reflects confidence in its R&D and globalisation capabilities. The company plans to strengthen sequencing technology, expand digital life products and drive market and ecosystem development. China’s gene sequencing innovations are expected to gain increasing international recognition, accelerating the industry from participation to leadership.
