Accompanying the rapid development of gene sequencing technology is the rapid expansion of the gene sequencing market, and Forbes magazine even predicts that its scale will reach hundreds of billions of dollars. Specific to China, "Two or three years ago, domestic companies doing high-throughput sequencing could count with two slaps, but now there are dozens or even hundreds of companies with high-throughput sequencing capabilities in China." Ren Lufeng, executive deputy director of the Technology Research and Development Center of the Beijing Institute of Genomics, Chinese Academy of Sciences, said. Regarding the hot gene sequencing market, some industry insiders calmly pointed out to the reporter of this newspaper that the current low-price competition status of the local industry and its hidden worries behind it. "Invisible" 100 billion industry scale At the beginning of last month, there was another major news following the "Human Genome Project" in the field of life science research: the international scientific community announced that the "Encyclopedia of DNA Elements" (ENCODE) project has obtained the most detailed human genome analysis data to date. The industry believes that the project will have a positive role in promoting disease diagnosis and drug development. However, compared with the industry's eager attention, some ordinary people randomly interviewed by the reporter said that the impact of gene sequencing technology on life is "not much understood". When the reporter proposed that the gene sequencing market will reach hundreds of billions of dollars, many respondents I feel exaggerated. "Now iPhones can be seen everywhere. I agree with you that it has a huge market, but I didn't find any practical application of gene sequencing." Said a young man with higher education. When a reporter asked him if he knew that the bin Laden was killed in recent years and that there was a fatal E. coli outbreak in Germany, he expressed concern about these two hot events. In fact, for the identification of bin Laden and the control of the German E. coli epidemic, gene sequencing technology has played a key role: the sequencing technology provided by Life Technologies helps the US military determine that the deceased is bin Laden himself and locks in a new mixed type of pathogenic E. coli strains are responsible for the deadly epidemic in Germany. In addition, gene sequencing technology is being applied to various aspects of disease diagnosis and treatment and food safety. When the above interviewees learned more application examples of sequencing technology, they also believed that "the scale of one hundred billion yuan may not be exaggerated." Enterprises seize the site In fact, gene sequencing technology has been destined to continuously challenge human imagination since its birth. When breakthrough high-throughput sequencing technology entered the market in 2005, the industry referred to it as "next-generation sequencing technology" rather than "second-generation sequencing technology" in order to distinguish it from the first generation technology, because scientists generally believed The third-generation sequencing technology is still out of reach, but only four years later, a new generation of technology was born. Compared with ordinary people, gene sequencing professionals with sensitive sense of smell have long aimed at this huge market and launched fierce competition. "The large-scale enterprises like BGI must naturally occupy as large a market as possible." Ren Lufeng told a reporter from China Science Daily. Last month, Huada Gene, the leader in the local gene sequencing industry, acquired Complete Genomics, a third-generation sequencing company in the United States, with a view to aggregating the market through mergers and acquisitions. "The development path of small and medium-sized enterprises is to compete for relatively blank areas and those markets that are in the gap." Ren Lufeng pointed out. Nosex is one of the domestic mid-sized gene sequencing companies that has done relatively well in the past two years. Due to the advantages of participation in the Human Genome Project and scientific research experience, Nocer Gene has been mainly engaged in undertaking universities, research institutes and large national projects. In recent years, it has also been serving the public more, including using sequencing technology to judge children Which is more talented. "Large companies can't eat all the market business. It doesn't have so many channels and power, so it will leave a lot of gaps in the market." Ren Lufeng said, "There is a small company that focuses on these small businesses. , Serve several hospitals, do some simple data collation, and then send the samples to a relatively large company for sequencing and data analysis, and then compare the results with the previously obtained data, and then feedback the results to the customer. " Price war Regarding the current market environment, Li Bingshen, general manager of Nocer Gene, told the reporter of China Science News that under fierce competition, many small companies in the local gene sequencing industry have chosen a price war, and even there is a phenomenon of mutual price pressure and vicious competition. Sun Zhongping, chairman of Jinweizhi Biotechnology (Beijing) Co., Ltd., once told reporters: "There is a bad place in the Chinese market. What do we sell cheaply and what do we buy expensive. For example, I often tell employees to do gene sequencing in China , So many companies are doing it, resulting in our prices being cheaper than in the United States. " Even for Huada Gene, the largest domestic gene sequencing industry, despite its rapid expansion in recent years, its development model and profitability are still worrying. Regarding BGI ’s recent merger of Complete Genomics, Han Jian, a researcher at the HudsonAlpha Institute in the United States, said that a non-profit company uses huge amounts of money to purchase a loss-making company. If the strong profit results cannot be displayed after the merger, it is not easy to maintain stock prices . Behind the continuous reduction in the price of sequencing, choosing a new development model is an inevitable trend in the development of the gene sequencing industry. It is reported that in 2011, China's sequencing market scale reached 1 billion US dollars, part of which will be used for the purchase of sequencer equipment, and most of it will be consumed in sequencing reagents. In this regard, Ren Lufeng pointed out that most of the equipment and reagents used for gene sequencing services in China's market come from a few foreign suppliers and have to bear higher equipment purchase and application costs than the countries where the suppliers are located. Zhang Junhui, head of routine sequencing at Nosex, told reporters from China Science News: "At present, the supply of genetic testing equipment and reagents is basically monopolized by European and American companies, which greatly reduces the profit margin of domestic gene sequencing service companies. " In fact, China's sequencing services company's equipment and reagents are overly dependent on imports, but it is a new development space for companies busy with "price war". 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