Company Overview - The company, founded by three medical doctors in Singapore, is preparing for an IPO on the Hong Kong Stock Exchange, planning to issue 46.62 million shares at a price of HKD 23.30 per share [1][2] - The founders have extensive backgrounds in biotechnology, with over 23 years of research experience in biochemistry and over a decade in the biopharmaceutical field [2][8] - The company specializes in developing and commercializing blood-based miRNA testing kits for cancer and other disease screenings [2][7] Financial Performance - The company has reported significant losses over the past three years, with losses of approximately USD 56.2 million, USD 69.6 million, and USD 92.2 million from 2022 to 2024, totaling nearly 1.4 billion RMB [3][12] - Despite multiple rounds of financing totaling USD 167 million, the company has faced cash flow challenges, with expenditures significantly exceeding revenues [12][14] Market Potential - The cancer screening market in regions such as China, Japan, Southeast Asia, and the United States has grown from USD 13 billion in 2019 to USD 15.2 billion in 2023, with projections to exceed USD 25 billion by 2033 [3][6] - The company operates in the liquid biopsy sector, with its flagship product, GASTROClear™, being the first molecular gastric cancer screening product to receive regulatory approval [7][14] Product Details - GASTROClear™ requires only 1 milliliter of blood for testing, offering a less invasive alternative to traditional endoscopic procedures [7][14] - The product has shown a sensitivity of 87.5% for stage I gastric cancer, but its specificity is only 68.4%, which may lead to a higher rate of false positives [14][15] Competitive Landscape - The company faces competition from other cancer screening firms, including Galleri, which offers a broader range of cancer detection through a single blood test [15][19] - The pricing of GASTROClear™ is positioned between USD 150 to USD 250, which may be less competitive compared to traditional endoscopic procedures that are often covered by insurance [15][16] Industry Challenges - The cancer early screening industry has seen significant investment but also faces scrutiny due to past failures and high-profile scandals, leading to a cautious investment environment [19][20] - The industry is characterized by high operational costs, with the company’s administrative expenses significantly outpacing its research and development spending [12][13][22]