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MGI (company)

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MGI Tech
Native name
深圳华大智造科技股份有限公司
Company typePublic
SSE: 688114[1]
IndustryBiotechnology
Founded2016; 8 years ago (2016)
Headquarters
Shenzhen
,
China
Area served
Worldwide
Number of employees
2,050[2]
ParentMGI Tech
SubsidiariesComplete Genomics
Websitewww.mgi-tech.com Edit this at Wikidata

MGI or MGI Tech is a Chinese biotechnology company,[3] which provides a line of products and technologies that serves the genetic sequencing, genotyping and gene expression, and proteomics markets. Its headquarters are located in Shenzhen, Guangdong, China.

History

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In 2016, MGI was founded as a subsidiary of BGI Group.[4][5] It manufactures high-throughput genetic sequencing systems and other products for use in the life sciences and health care sectors.[6][7] As of July 2022, the company's operation is divided into two primary business segments: genetic sequencers and laboratory automation systems.[8][9]

MGI was a subsidiary of BGI Group before, it was spun out and listed on the Shanghai stock exchange in 2022.[10]

In May 2020, MGI raised $1 billion in series B funding from IDG Capital and CPE China Fund.[11][12] In December 2020, the company submitted its IPO application to Shanghai Stock Exchange STAR Market.[13][14] In September 2021, the company has won the approval for its IPO on Shanghai Stock Exchange STAR Market’s high-tech board.[15]

In 2024, MGI lost more than a third of its market capitalization after the US Congress introduced legislation to prohibit American health data being sent to China.[16]

Subsidiaries

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Complete Genomics

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In March 2013, Complete Genomics was acquired by BGI Group.[17] After the acquisition, Complete Genomics moved to San Jose, and in June 2018 became part of MGI.[18][19] The acquisition was the one of the outcomes of $1.5 billion 'collaborative funds' i.e., '10 years loan' which was initially provided by China Development Bank to acquire all 128 of Illumina, Inc.'s newest and fastest next-generation sequencers including HiSeq 2000.[20]

Research and development

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The company is known for manufacturing DNA sequencers based on low-cost DNA nanoball sequencing technologies which was refined further after the acquisition of Complete Genomics.[21][22] The refinement included combinatorial probe anchor synthesis technologies which involves loading DNA nanoballs (DNBs) onto a patterned array chip using a fluidic system. Subsequently, a sequencing primer is added to the adaptor region of the DNBs in order to hybridize them.[23]

Criticism

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On October 31, 2019, the Chairman of the Senate Finance Committee, Chuck Grassley, and Senator Marco Rubio wrote a joint letter to Alex Azar, the Secretary of the Department of Health and Human Services and Seema Verma, the Administrator of the Centers for Medicare & Medicaid Services (CMS) raised their concerns against MGI, regarding the circumstances under which the CMS may finance it to process American citizens' genomic or exome data.[24]

MGI asserted that it is “a supplier of instruments and consumables for customers to use in their own labs” and does not provide any genomic sequencing services. “MGI does not own, control, handle, or even access samples or genetic data, only MGI’s customers do. There is no risk that MGI will have access to any health records or genetic data from customers,” the company stated.[25]

Litigation

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Patents infringement lawsuit

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In November 2021, a federal jury in California concluded that MGI America (in its capacity as an affiliate of BGI Group) had infringed Illumina, Inc.'s patents. Accordingly, they awarded Illumina damages of $8 million.[26]

In March 2022, Illumina persuaded a U.S. District Judge to prolong the restriction on MGI America selling its CoolMPS sequencers in the United States for six months until August 2022, when Illumina's patent expires.[27]

“Two-channel” DNA sequencing lawsuit

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Complete Genomics, a research subsidiary of MGI, filed a lawsuit in May 2019, alleging that Illumina's "two-channel" DNA sequencing chemistry violates two patents for the technology that deduces the identification of each nucleotide from two signals. The NovaSeq 6000, the NextSeq 500/550/550x, and 1000/2000 Series, as well as the MiniSeq, were all the focus of the lawsuit against Illumina. Additionally, it targeted Illumina's cluster generation & sequencing, and library preparation kits, all of which are interoperable with one or more platforms.[28]

In May 2022, A jury in Delaware concluded that Illumina's “two-channel” sequencing chemistry infringes on two patents owned by MGI Tech through its subsidiary Complete Genomics. As a result of this finding, the jury awarded $333.8 million in damages to the company. The jury also dismissed Illumina's assertions that the patents were invalid. The verdict also invalidated three of Illumina's patents that the firm had asserted in a countersuit claiming MGI Tech had infringed on Illumina's patents.[29]

References

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  1. ^ "Wall Street Journal Stock Quote: MGI Tech Co Ltd". Archived from the original on 2022-09-12. Retrieved 2024-04-16.
  2. ^ "Bloomberg company profile: MGI Tech Co Ltd". Bloomberg News. Archived from the original on 2024-04-16. Retrieved 2024-04-16.
  3. ^ Belova, Vera; Pavlova, Anna; Afasizhev, Robert; Moskalenko, Viktoriya; Korzhanova, Margarita; Krivoy, Andrey; Cheranev, Valery; Nikashin, Boris; Bulusheva, Irina; Rebrikov, Denis; Korostin, Dmitriy (2022-01-12). "System analysis of the sequencing quality of human whole exome samples on BGI NGS platform". Scientific Reports. 12 (1): 609. Bibcode:2022NatSR..12..609B. doi:10.1038/s41598-021-04526-8. ISSN 2045-2322. PMC 8755732. PMID 35022470.
  4. ^ Pennisi, Elizabeth (June 15, 2022). "A $100 genome? New DNA sequencers could be a 'game changer' for biology, medicine". Science. Archived from the original on July 14, 2022. Retrieved July 14, 2022.
  5. ^ Regalado, Antonio (2020-02-26). "China's BGI says it can sequence a genome for just $100". MIT Technology Review. Archived from the original on 2022-01-28. Retrieved 2022-07-14.
  6. ^ Pilch, Richard; Luster, Jill; Pomper, Miles; Shaw, Robert (2021). Scientific Risk Assessment of Genetic Weapon Systems (PDF). Monterey, California: Middlebury Institute of International Studies at Monterey. p. 41. Archived (PDF) from the original on 2024-03-17. Retrieved 2024-04-16.
  7. ^ Yuting, Dun (2020-06-26). "Chinese DNA sequencing company raises a record $1 billion". Nikkei Asia. Archived from the original on 2022-06-05. Retrieved 2022-07-14.
  8. ^ "华大智造(X20636)：基因测序 星辰大海之华大智造__新浪财经_新浪网". stock.finance.sina.com.cn. Archived from the original on 2022-02-12. Retrieved 2022-07-14.
  9. ^ "ICG-16 | 华大智造三大核心业务齐发力！全面赋能生命科学产业发展 – SEQ.CN". www.seqchina.cn. Archived from the original on 2022-02-12. Retrieved 2022-07-14.
  10. ^ Smyth, Jamie; Sevastopulo, Demetri (18 April 2023). "Chinese genetics company targets US despite political tensions". Financial Times. Archived from the original on 2023-04-18. Retrieved 2023-04-18.
  11. ^ Yanfeng, Peng; Jia, Denise. "Coronavirus Testing Equipment Maker MGI Tech Gets $1 Billion Funding - Caixin Global". Caixin Global. Archived from the original on 2022-07-04. Retrieved 2022-07-14.
  12. ^ Micalo, Silvia (2022-10-03). Healthtech Innovation: How Entrepreneurs Can Define and Build the Value of Their New Products. CRC Press. ISBN 978-1-000-73722-6. Archived from the original on 2024-04-16. Retrieved 2022-09-06.
  13. ^ Zhang, Huanjia (2022-08-29). "MGI Tech Planning to go Public in $366M Chinese IPO". GenomeWeb. Archived from the original on 2022-09-03. Retrieved 2022-09-03.
  14. ^ Law, Kenneth; Lin, Tony (September 2021). "2021 China Life Sciences and Healthcare M&A Whitepaper" (PDF). Deloitte. pp. 7–8. Archived (PDF) from the original on 2022-11-30. Retrieved 2022-09-03.
  15. ^ "BGI's Gene Sequencer Spin-Off Approved for Shanghai IPO". Caixin. Archived from the original on 2023-12-16. Retrieved 2024-04-16.
  16. ^ "America hits Chinese biotech—and its own drugmakers". The Economist. April 15, 2024. ISSN 0013-0613. Archived from the original on 2024-04-16. Retrieved 2024-04-16.
  17. ^ "Complete Genomics, BGI Agree to $117.6M Merger". GenomeWeb. 2012-09-17. Archived from the original on 2022-12-05. Retrieved 2022-07-14.
  18. ^ Campbell, Matthew; Lyu, Dong (2019-11-13). "China's Genetics Giant Wants to Tailor Medicine to Your DNA". Bloomberg Asia Edition. Archived from the original on 2022-04-17. Retrieved 2022-09-03.
  19. ^ LeMieux, Julianna; PhD (2019-01-11). "All Aboard the Genome Express". GEN - Genetic Engineering and Biotechnology News. Archived from the original on 2022-07-14. Retrieved 2022-07-14.
  20. ^ Wang, Kai; Shen, Xiaobai; Williams, Robin (2021-07-03). "Sequencing BGI: the evolution of expertise and research organisation in the world's leading gene sequencing facility". New Genetics and Society. 40 (3): 305–330. doi:10.1080/14636778.2020.1843148. hdl:20.500.11820/fdccac07-cd53-42df-ac40-62842218dc76. ISSN 1463-6778. S2CID 229445267. Archived from the original on 2024-04-16. Retrieved 2022-09-03.
  21. ^ Anslan, Sten; Mikryukov, Vladimir; Armolaitis, Kęstutis; Ankuda, Jelena; Lazdina, Dagnija; Makovskis, Kristaps; Vesterdal, Lars; Schmidt, Inger Kappel; Tedersoo, Leho (2021-09-30). "Highly comparable metabarcoding results from MGI-Tech and Illumina sequencing platforms". PeerJ. 9: e12254. doi:10.7717/peerj.12254. ISSN 2167-8359. PMC 8491618. PMID 34703674.
  22. ^ Kaspers, Bernd; Schat, Karel A.; Göbel, Thomas; Vervelde, Lonneke (2021-12-05). Avian Immunology. Academic Press. ISBN 978-0-12-819071-5. Archived from the original on 2024-04-16. Retrieved 2022-09-06.
  23. ^ Li, Zhuokun; Wang, Xiaojue; Xu, Dongyang; Zhang, Dengwei; Wang, Dan; Dai, Xuechen; Wang, Qi; Li, Zhou; Gu, Ying; Ouyang, Wenjie; Zhao, Shuchang; Huang, Baoqian; Gong, Jian; Zhao, Jing; Chen, Ao (2020-07-31). "DNB-based on-chip motif finding: A high-throughput method to profile different types of protein-DNA interactions". Science Advances. 6 (31): eabb3350. Bibcode:2020SciA....6.3350L. doi:10.1126/sciadv.abb3350. ISSN 2375-2548. PMC 7399529. PMID 32789179.
  24. ^ "Grassley, Rubio Seek Answers on HHS Funded Genetic Testing Connected to China, Russia | The United States Senate Committee on Finance". www.finance.senate.gov. Archived from the original on 2022-09-12. Retrieved 2022-09-12.
  25. ^ Huanjia, Zhang. "MGI Tech Heads Full Steam Into US Market Despite Data Security Accusations, Image Problems". GenomeWeb. GenomeWeb. Retrieved 19 December 2022.
  26. ^ Albarazi, Hannah. "Jury Says BGI Owes Illumina $8M For Infringing DNA Patents - Law360". Law360. Archived from the original on 2022-07-14. Retrieved 2022-07-14.
  27. ^ Brittain, Blake (2022-03-29). "Illumina wins extended U.S. ban on BGI gene-sequencer sales". Reuters. Archived from the original on 2022-07-14. Retrieved 2022-07-14.
  28. ^ Yasiejko, Christopher (2022-05-09). "Illumina Owes BGI $333.8 Million Over Gene-Sequencer Patents (2)". Bloomberg Law. Archived from the original on 2022-05-10. Retrieved 2022-07-14.
  29. ^ Brittain, Blake (2022-05-07). "Illumina ordered to pay BGI subsidiary $333 million in DNA-sequencing patent case". Reuters. Archived from the original on 2022-05-11. Retrieved 2022-07-14.
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