Burning Rock Biotech, the China-based cancer diagnostics technology developer backed by pharmaceutical firm Eli Lilly and conglomerate Legend Holdings, has filed for a $100m initial public offering on the Nasdaq Global Market.
Founded in 2014, Burning Rock has created 32 precision oncology tests that are used to identify and select treatments for types of cancer including breast, gastrointestinal, lung and prostate carcinomas in the early stages.
The company’s net loss grew from RMB232m in 2018 to RMB334m ($47.2m) in 2019. The IPO proceeds will go to talent retention and research and development of its cancer diagnostics technologies as well as seeking Chinese regulatory approval for its cancer therapy products.
Burning Rock secured $126m in a February 2019 series C round led by Singaporean sovereign wealth fund GIC that included Eli Lilly subsidiary Lilly Asia Ventures, CMB International Capital, Lyfe Capital, Sequoia Capital China and T&Brothers Capital.
CMB International Capital, Sequoia Capital and Lyfe Capital had already joined Legend Holdings’ early-stage investment arm, Legend Star, in Burning Rock’s $43.9m series B round, which closed in 2017.
The series B round followed $23m in series A funding from Legend Star, Sequoia Capital, Northern Light Venture Capital and Jifeng Capital in 2015.
Legend Holdings owns a 6.1% stake in the company through a vehicle called Crest Top Developments. Burning Rock’s largest shareholder is CEO Yusheng Han, who has a 20% stake through family trust Quantum Boundary Holdings.
Northern Light Venture Capital holds a 13.7% share, and Burning Rock’s other notable investors are Sequoia Capital China (9.1%), CMB International, a subsidiary of financial services firm China Merchants Bank (8.8%), Lyfe Capital (7.9%) and GIC (6.1%).
Morgan Stanley, BofA Securities and Cowen have been appointed co-managers for the proposed offering while CMB International Capital and Tiger Brokers are also underwriters.
