US-based cancer test developer Grail secured $300m yesterday in an oversubscribed series C round co-led by 6 Dimensions Capital, the healthcare investment firm co-founded by pharmaceutical group WuXi AppTec.
The round, which was co-led by healthcare investment group Ally Bridge and hedge fund manager Hillhouse Capital, also featured WuXi AppTec’s genomic information subsidiary, WuXi NextCode.
Blue Pool Capital, China Merchant Securities International, CRF Investment, HuangPu River Capital, ICBC International and Sequoia Capital China filled out the investor consortium.
Spun off from genomics technology producer Illumina, Grail is using a combination of high-intensity sequencing, computer and data science technology and large-scale clinical studies to develop a blood test that will be able to detect cancer at an earlier stage.
A report last month suggested the company would target $1bn in funding in its latest round, though the $300m could merely represent its first tranche, particularly as Grail raised its series B funding in multiple tranches.
Grail is reportedly also considering a $500m initial public offering in Hong Kong, where it maintains an office.
Ken Drazan, Grail’s president, said: “We are fortunate to partner with new international investors who share our vision of delivering early detection products to people globally.
“Many of our new investors have a focus in Asia, which we believe is a natural fit as we plan to grow our capabilities and operations in the region, following the planned launch of our first product for early detection of nasopharyngeal cancer in Hong Kong this year.”
The round brought Grail’s total funding to approximately $1.65bn in total, including $125m in a series A round co-led by Illumina and Arch Venture Partners and backed by Sutter Hill Ventures, Bezos Expeditions and private investor Bill Gates.
Grail closed a further $1.2bn in funding in November 2017, raising cash from corporates Tencent, Amazon, Bristol-Myers Squibb, Celgene, Merck & Co, Varian Medical Systems, Johnson & Johnson and McKesson, the latter two through their Johnson & Johnson UK Treasury and McKesson Ventures units, as well as VC firm Arch Venture Partners.
GV, a corporate venturing subsidiary of internet and technology conglomerate Alphabet, is also among the company’s backers, as is investment firm Decheng Capital.