MGI(SH:688114) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-13 09:40Core Insights - The article highlights the growing recognition of China's biopharmaceutical industry's innovation capabilities in the international market, with business development (BD) expanding from traditional biopharmaceuticals to medical devices, becoming a crucial path for resource integration and global expansion in the device sector [2][3] Company Overview - On October 12, 2023, BGI Genomics (MGI, stock code: 688114.SH) announced the licensing of its CoolMPS sequencing technology and related products to Swiss Rockets AG for global market development outside the Asia-Pacific and Greater China regions [2][3] - The agreement is expected to generate at least $120 million in licensing fees for BGI Genomics, including a non-refundable upfront payment of $20 million, milestone payments of $20 million, and a tiered royalty based on net sales of licensed products [2][3] Strategic Implications - This licensing agreement marks a significant step in BGI Genomics' globalization strategy, allowing the company to maximize the value of its technology through international collaboration [3][4] - The CoolMPS technology is a high-throughput sequencing method that improves accuracy and read length compared to traditional methods, positioning BGI Genomics as a leader in the gene sequencing equipment sector [4][5] Financial Impact - The transaction structure includes an upfront payment and milestone payments, which will enhance BGI Genomics' cash flow without incurring the costs associated with R&D, registration, and commercialization in the European and American markets [5][6] - The deal is expected to provide a steady stream of revenue through royalties once Swiss Rockets commercializes the products in the authorized regions [5][10] Market Positioning - Swiss Rockets, an innovative company based in Basel, Switzerland, will leverage its local advantages to facilitate BGI Genomics' entry into the European and American markets, reducing the need for extensive channel development and market education [6][7] - This partnership exemplifies a "technology going abroad" strategy, allowing BGI Genomics to focus on its core technologies while expanding its market reach [8][9] Future Outlook - The licensing agreement is anticipated to positively impact BGI Genomics' future performance and enhance its global commercialization and profitability [11] - The collaboration is seen as a validation of BGI Genomics' technological competitiveness on an international scale, potentially leading to sustained growth and value reassessment in the expanding global gene sequencing market [10][11]