(Yicai Global) Dec. 8 -- Genome sequencing group BGI Genomics Co. [SHE:300676] and traditional Chinese medicine firm Kangmei Pharmaceutical Co. [SHA:600518] will set up a joint venture to promote the application of gene technologies in the TCM sector.

BGI Genomics said it signed an investment agreement with the Puning-based company to set up a JV in Shenzhen in the southeastern province of Guangdong yesterday. They will invest CNY50 million (USD7.56 million), with Kangmei chipping in CNY47.5 million of cash and BGI Genomics putting up physical assets worth CNY2.5 million.

The pair signed a cooperation agreement to promote the integration of gene technologies and TCM on Oct. 31. The establishment of the JV is their first concrete step since they formed their strategic partnership and will lay the foundation for future collaboration.

The joint venture will combine BGI Genomics' professional expertise in precision medicine with Kangmei Pharmaceutical's advantageous presence in the TCM industrial chain to expand the use of genetic diagnosis techniques and genomics research results in the TCM sector, the Shenzhen-based firm said.

Founded in 1999, BGI Genomics was originally a life science research institute. It has branches in Beijing, Tianjin, Shanghai and Guangzhou and overseas labs in Hong Kong, Europe and North America.