MGI(SH:688114) Zheng Quan Shi Bao Wang·2025-10-12 10:45Core Viewpoint - BGI Genomics (688114) has announced a strategic technology licensing agreement with Swiss Rockets AG, granting exclusive rights to its CoolMPS sequencing technology for global markets outside the Asia-Pacific and Greater China regions, aiming to maximize the value of its proprietary technology [1][2] Financial Arrangement - The agreement includes a total of no less than $120 million in upfront payments, milestone payments, and tiered revenue sharing based on net sales during the agreement period [1] - Swiss Rockets will pay a one-time upfront fee of $20 million and an additional $20 million in milestone payments, providing BGI Genomics with $40 million in certain revenue to improve cash flow without incurring R&D and commercialization costs in the European and American markets [2][5] Strategic Implications - This licensing agreement allows BGI Genomics to leverage Swiss Rockets' local advantages to bypass the costs associated with market entry in Europe and the U.S., achieving global technology deployment more efficiently [3] - The company retains operational rights in Greater China and the Asia-Pacific, ensuring control over its core markets while expanding into new territories [2][3] Market Context - Swiss Rockets is an innovative enterprise with several leading biotechnology companies under its umbrella, demonstrating significant progress in clinical research and commercial partnerships [4] - The licensing agreement reflects a broader trend in the industry, marking a shift from "product output" to "technology output" for Chinese life science companies, enhancing the commercial potential of proprietary technologies [6] Valuation and Future Outlook - An independent assessment valued BGI Genomics' CoolMPS intangible assets at approximately $10.63 million, with North America and Europe accounting for $5.14 million and $2.58 million, respectively, supporting the pricing of the licensing deal [6] - The agreement is expected to positively impact the company's future performance, enhancing its global commercialization and profitability capabilities [6]