CapitalWatch, Sep. 4, New York
Genetron Holdings Ltd. (Nasdaq: GTH), a Chinese precision oncology platform, has made the FTSE Russell global equity index series (GEIS) after the company posted record quarterly revenue and gave an update on the recognition and use of its products in China.
The company said in a statement that, effective after markets closed Friday, Genetron will be included on the Small Cap, All-Cap, and Total-Cap FTSE Global benchmarks. FTSE GEIS, launched in 2003, includes more than 16,000 large, mid, small, and micro-cap securities across 49 developed and emerging markets. Over the past few days, the benchmark added a number of China-based U.S.-listed stocks, among them biopharma company I-Mab (Nasdaq: IMAB), podcast platform Lizhi Inc. (Nasdaq: LIZI), mobile developer service provider Aurora Mobile Ltd. (Nasdaq: JG), and Genetron.
"This inclusion marks another significant capital market milestone since Genetron's Nasdaq IPO debut in June 2020," Genetron's chief executive, Sizhen Wang, said in a statement Friday. "Since our inception, we are dedicated in providing broader and better healthcare options globally. We are also pleased with our recent financial results, which continues to highlight our leading position in the precision oncology sector in China."
Last week, Genetron reported 38% year-over-year revenue growth in the second quarter to $21.8 million. Diagnosis and monitoring revenue increased by 39% and development services increased 22%. Gross margin improved to 67.2% from 63.1% in the same period of 2020. The biotech company noted the spreading recognition of its flagship product – HCCscreenTM, a liquid biopsy early screening product for hepatocellular carcinoma.
Genetron has begun the prep work for the registrational trial with the National Medical Products Administration for HCCscreenTM during the second quarter and plans to release the case-control CRC data for early screening later this year. Another of its products, Genetron's AYVAKIT® companion diagnostic kit, built in partnership with CStone Pharmaceuticals (HKEX: 2616), has entered the priority review and approval process under NMPA.
Year-to-date, the stock in Genetron has gained more than 3%, beating the majority of Chinese stocks traded in the United States that crashed under regulatory pressure, continued Covid-19 uncertainty, and the Sino-American tension. Second-quarter results boosted GTH shares significantly last week; on Friday, the stock inched a bit lower, to $14.21 per share.
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