KingMed boosts biotech cooperation in Bay Area
As a “super-connector” in the biotechnology industry of the Guangdong-Hong KongMacao Greater Bay Area, KingMed Diagnostics Group Co Ltd has been exploring the strengths that each Bay Area city possesses and linking them together to maximize the outcome and expand scientific payoffs to a wider population.
Having 37 central labs in China with more than 22,000 medical clients, KingMed’s services cover more than 90 percent of China’s population. The company identifies itself as a “super-connector” which supports Hong Kong to carry out research and development projects while introducing preeminent biotechnological projects to the mainland and Hong Kong.
KingMed was the first mainland-based independent clinical laboratory (ICL) to tap into the Hong Kong market in 2011 when it took over Ausmed Immuno Diagnostic Services (AIDS) Ltd with over 30 years of experience providing quality medical laboratory testing services. The ICL designation indicates that the medical institution is licensed by the administrative department of public health with an independent legal personality. It specializes in medical laboratory testing services.
“We realized that though AIDS had great service quality covering the Central and Eastern districts of Hong Kong Island, it was confined to a small market size and scale of its business. We want to benefit more people,” Yan Ting, senior vice-president of KingMed said.
In 2014, Guangzhou-based KingMed set up KingMed Diagnostics (Hong Kong) Ltd. Three laboratories and six blood collection and service centers have been established throughout Hong Kong. The laboratory located in Ngau Tau Kok occupies more than 1200 square meters and is Hong Kong’s biggest single floor medical lab while the other two are located in Central and Hong Kong Science Park.
“After years of accumulated experience, we are now familiar with the medical service requirements and the operational model under the ‘one country, two systems’ principle,” Yan said. Yan is in charge of KingMed’s Hong Kong subsidiary and part of KingMed’s Guangzhou business. This requires her to understand the two cities and promote the study of mutual advantage.
The company regards Hong Kong as assuming a leading role to extend its service to Southeast Asia and other countries along the Belt and Road Initiative, a China-led strategy to connect and cooperate with Eurasian countries. At present, Malaysia and Iran are sending samples to KingMed Hong Kong for diagnosis, according to Yan. Since last year, the net profit of its Hong Kong subsidiaries has increased for more than 35 percent.
In January, KingMed announced its plan to invest 150 million yuan in three phases for a 50 percent stake in Hong Kong gene testing company DRA Company Ltd to specialize in deep collaboration with The Chinese University of Hong Kong on non-invasive prenatal testing (NIPT). This is a technique to monitor fetus conditions by understanding certain chromosomal conditions from a single blood draw of antenatal mothers.
“It’s a win-win cooperation.
The mainland market is massive and attractive with a huge database.”
On the one hand, KingMed possesses a broad market and customer network with great experience in marketing to promote the scientific payoffs in the mainland, Hong Kong and Southeast Asia,” Yan said. “On the other hand, extensive research and development could encourage DRA to strengthen scientific research innovation.”
In August, KingMed invested 80 million yuan in DRA for the first phase. The two companies aim to create a virtuous cycle to promote positive correlation between scientific research and industrialization.
In addition, the healthcare provider has been collaborating with the Department of Microbiology of Li Ka Shing Faculty of Medicine at The University of Hong Kong on developing the rapid diagnosis of drug resistance in Mycobacterium tuberculosis, using next-generation sequencing technology.
“Hong Kong has its advantages in scientific research and international technology exchange. We aimed to establish a platform combining medical laboratory service, research and development and Hong Kong’s strengths,” Yan explained.
KingMed has also carried out academic cooperation and exchange programs for students from Guangdong, Hong
Yan Ting,
Kong and Macao. “Such activities will continue to promote academic exchange and mutual understanding,” Yan said.
“The mainland market is massive and attractive with a huge database,” Yan said. “Among the 121 rare diseases announced in China recently, we actually cover the tests on thousands of rare diseases including those 121,” she added.
Yan explained that the company would like to use its technological capabilities to provide Hong Kong residents with hightech medical services.
Following the concept of “Internet + Healthcare”, KingMed has initiated a three-stage network system Pathology Consultation which allows the pathological specimen to be digitized for remote consultations.
In future, one of the focal points for the company is to develop In Vitro Diagnostic (IVD) which can detect diseases by body samples like blood, tissue or urine, according to Yan.
In 2016, China’s top health authority issued a circular on popularizing family doctors service. The pilot project aims to cover more than 30 percent of China’s population.
“Though on the mainland we are not able to fully provide such medical services at the moment due to its broad region, we could improve our services through learning from Hong Kong’s hierarchical medical system, with family doctors for comprehensive, timely and efficient medical services,” Yan said.
The National Health Commission had encouraged private capital to join the establishment of ICL and lowered the threshold of ICL concerning significant investors and administrative approval earlier last year. With progressive implementation of healthcare reform in China, the ICL market is now thriving.
In 2017, China’s ICL industry took up 11 billion yuan of market size among the total 260 billion yuan of the clinical laboratory service market in China, according to Qianzhan.com, a technology research platform. As the industry leader, KingMed holds 30 percent of China’s ICL market share, the most among China’s ICL.
In 2020, ICL is estimated to take up 7 to 9 percent of China’s medical laboratory market with high growth potential.
“ICL helps to tackle the insufficient medical resources and improve the service of primary healthcare institutions,” Yan said. She sees great prospects for China’s ICL industry.