$50 million sale of CGI+ expansion licensing! BGI Genomics and Swiss Rockets have reached a new partnership

As the global gene sequencing industry undergoes a reshaping of its competitive landscape, BGI Genomics (688114.SH) has once again optimized and upgraded its global business layout and business model.

On the evening of the 23rd, the company announced that its wholly owned subsidiary MGI R&D HK has signed a Share Purchase Agreement with Swiss Rockets, intending to sell 100% equity of its wholly owned subsidiary CGI—after stripping relevant assets and liabilities—to Swiss Rockets for approximately $50 million. Simultaneously, the company revised the sequencing technology licensing agreement signed last year, introducing StandardMPS sequencing technology licensing into the existing cooperation framework, further deepening strategic collaboration with Swiss Rockets.

This transaction is a continuation of the first technical licensing cooperation reached between the two parties last year. In October 2025, BGI Genomics, through its subsidiaries MGI US LLC and CGI, signed a CoolMPS sequencing technology licensing agreement with Swiss Rockets, granting exclusive licenses outside the Asia-Pacific and Greater China regions for related patents, trade secrets, and trademarks. This arrangement is viewed by industry insiders as a key move by the company to replace “asset export” with “technology export” amid complex international environments.

The core of the cooperation at that time was the CoolMPS technology, which is an important part of BGI Genomics’ differentiated sequencing approach. It was licensed along with general sequencing technologies (including stLFR, cLFR, etc.), with Swiss Rockets responsible for commercializing these in the European and American markets. According to the original agreement, the company would receive a $20 million upfront payment, a $20 million milestone payment, and royalties based on net sales of licensed products, forming a revenue structure of “upfront payments plus backend revenue sharing.”

The current announcement indicates further enhancement of cooperation. On one hand, BGI Genomics plans to sell 100% equity of CGI—after asset and liability stripping—to Swiss Rockets, achieving “off-balance sheet” treatment for its core North American operations; on the other hand, through an amended licensing agreement, an exclusive license for StandardMPS sequencing technology in the US and Canada has been added.

From a structural perspective, this adjustment reflects a clearer strategic orientation: reducing direct operational and compliance risks through equity divestment, while locking in long-term cash flow via multi-technology platform licensing, and shifting revenue from one-time equipment sales to ongoing technology licensing.

The announcement states that after the new licensing, Swiss Rockets will also need to pay licensing fees for sales of StandardMPS-related products, with a revenue-sharing mechanism consistent with the original CoolMPS agreement. During the entire license period, BGI Genomics expects to generate no less than $120 million in revenue, including the $20 million upfront payment, $20 million milestone payment, and tiered royalties based on sales. The related agreements have been reviewed by the board of directors and are subject to shareholder approval.

Financially, BGI Genomics explicitly states that this transaction will bring “significant direct benefits and ongoing cash flow improvements.” On one hand, the company will receive approximately $50 million in consideration for equity transfer; on the other hand, by divesting the continuously loss-making CGI business unit in recent years, it can reduce the drag on consolidated financial statements and improve overall profitability and operational efficiency.

Additionally, the licensing model transforms the previously highly volatile overseas direct sales business into a structured, predictable revenue stream, enhancing financial resilience. This change also signifies that BGI Genomics’ participation in the global market is accelerating its shift from “asset-heavy operations” to “light asset output.”

More critically, there is a rebalancing of technology and assets. Before the transaction completes, CGI has already, through reverse licensing, permanently, freely, and irrevocably licensed back to the company’s system 205 patents covering library construction, sequencing methods, hardware systems, software algorithms, and reagents. BGI Genomics believes this arrangement “effectively safeguards the integrity of the technology system and business continuity,” laying a foundation for subsequent global licensing.

On the business and strategic level, this adjustment is also seen as a recalibration of BGI Genomics’ global deployment. According to the announcement, the company will continue to lead the expansion of CoolMPS in Asia-Pacific and Greater China, and the global promotion of StandardMPS outside the US and Canada; North American market participation will be achieved through licensing and partnerships.

This model reflects proactive adaptation to current geopolitical and regulatory environments. By transferring North American operations to partners, BGI Genomics aims to maintain technology export and market penetration within a compliant framework, reducing potential policy uncertainties’ impact on operations.

Data shows that Swiss Rockets, founded in 2018 and headquartered in Basel, Switzerland, is an innovative biopharmaceutical holding platform focused on oncology and infectious diseases, with subsidiaries in Switzerland, Serbia, and the US. The announcement states that its asset scale has expanded rapidly in recent years, with certain financing capabilities and performance guarantees, supporting the implementation of cooperation.

Notably, while optimizing overseas asset structure, BGI Genomics is also ramping up integration of cutting-edge technologies. According to Caixin, in February this year, the company announced plans to acquire 100% equity of Shenzhen BGI Sanjian Qifa Technology Co., Ltd. and Hangzhou BGI Xufeng Technology Co., Ltd., integrating spatiotemporal genomics and nanopore sequencing into its core capabilities.