DaoBo Health: A Rising Star in Digital Respiratory Care Achieves Tens of Millions in Revenue Within a Year
On July 6, 2022, ResApp Health (ASX: RAP), a digital health company in the respiratory care sector, announced that its SleepCheckRx app, which analyzes recorded breathing and snoring sounds, had received FDA approval. The product is primarily used for the diagnosis and treatment of obstructive sleep apnea (OSA), a chronic respiratory disorder.
ResApp is a company that develops mobile applications for the diagnosis and management of respiratory diseases. Notably, in April this year, Pfizer announced its intention to acquire ResApp Health for $74 million. However, according to an update on June 30, ResApp’s asking price has risen to $86 million, and the acquisition is currently ongoing.
The company’s recent impressive performance has also significantly boosted the confidence of its domestic peers,Daobo Medical Technology (Beijing) Co., Ltd.(hereinafter referred to as“Daobo Company”) is one of them. Taking this opportunity, VCBeat interviewed Daobo CompanyDr. Fei Qi, FounderWe conducted an interview, in which they introduced us to the recent key changes in the global respiratory field, as well as Daibo’s product and market development strategies.
Although chronic respiratory diseases are listed alongside hypertension, diabetes, and cancer as the four major global chronic conditions, they remain little known to the public. Among them, obstructive sleep apnea (OSA), chronic obstructive pulmonary disease (COPD), and asthma are relatively common chronic respiratory disorders.
In 2019, China released the "Healthy China Action (2019-2030)," explicitly listing the prevention and control of chronic respiratory diseases as one of the fifteen major initiatives, eight of which are closely related to the prevention and treatment of respiratory diseases. Addressing the shortcomings in chronic disease prevention and control and establishing a comprehensive system for the prevention and treatment of chronic respiratory diseases are of great significance for building a moderately prosperous society in all respects and facilitating the implementation of the "Healthy China 2030" strategy.
As one of the four major chronic diseases, respiratory diseases in China rank among the highest in terms of mortality and disease burden; however, public awareness and attention paid to them are significantly lower than those for the other three major chronic conditions. In terms of prevention and control, critical challenges persist, including low patient disease awareness, high rates of missed diagnosis, poor treatment adherence, and low rates of standardized therapy, resulting in a severe situation for disease prevention and management.
Management of chronic respiratory diseases is not an overnight endeavor; these conditions are characterized by their long-term persistence and propensity for recurrent exacerbations, necessitating long-term, standardized, and more systematic whole-course management for patients. Meanwhile, initial diagnoses of chronic respiratory diseases such as chronic obstructive pulmonary disease (COPD) and asthma primarily occur at the primary care level. As the main arena for COPD management, enhancing the diagnostic and therapeutic proficiency and efficiency of primary care physicians has become a key factor in addressing the critical challenges of prevention and control efforts.
Daobo Medical was established in August 2021, and isAn Innovative Enterprise in Digital Diagnosis and Treatment of Respiratory Diseases,Dedicated to building a specialized digital healthcare ecosystem that integrates innovative diagnostic and therapeutic technologies for respiratory and related diseases, digital therapeutics, chronic disease management platforms, disease-specific Clinical Decision Support Systems (CDSS), and internet hospital platforms.
The company focuses on the niche sector of respiratory and related diseases. Leveraging technologies such as cloud computing, big data, and artificial intelligence, it is building a digital health standard system for respiratory diseases and establishing integrated diagnostic and treatment standards that combine “online + offline” and “in-hospital + out-of-hospital” care. Driven by technology to transform disease diagnosis and treatment, the company empowers the enhancement of respiratory disease management. It provides patients with more efficient and high-quality medical care, builds a standardized and regulated diagnostic and treatment platform for respiratory specialists and healthcare institutions at all levels, and constructs a full-cycle closed-loop management system for respiratory disease care encompassing “promotion, prevention, diagnosis, control, treatment, and rehabilitation” in the era of information technology, thereby boosting the construction and development of respiratory specialties.
Daobo Medical Has Been Selected, Thanks to Its Robust Technological Innovation and R&D CapabilitiesMember of the Internet Healthcare Industry Alliance,Honored withZhongguancun High-Tech Enterprise Certificate,Beijing Changju Engineering Entrepreneurial Team Project Awardsuch honors.
In November 2021, Daobo Medical completed theTaiyu InvestmentandDanlu CapitalInvestmentTens of Millions in Angel Round Financing. Propelled by capital investment, Daobo Medical entered a fast track of development, successively launching the pioneering diagnostic-grade contactless OSA screening mobile app “Shui Hao Le Me” and an AI-driven digital-intelligent therapeutic solution. Within less than a year of its establishment, the company achieved self-sustaining revenue generation.Achieved tens of millions of yuan in revenue.
Regarding the original intention behind starting the company, Dr. Qi Fei, the founder, stated: “Before embarking on my entrepreneurial journey, I was a clinician. While practicing in the hospital, I observed that a large number of patients did not receive timely treatment. After discharge, the lack of professional care often led to acute exacerbations, necessitating repeated hospitalizations. Relying solely on individual clinical capabilities has limited potential to improve this situation. It is essential to leverage technological advancements and industry development to rapidly enhance physicians’ diagnostic and therapeutic capabilities, as well as to promote standardized clinical practices both within and outside hospital settings. Only in this way can we provide care to more patients, benefit a broader population, and alleviate the burden of disease.”
Obstructive sleep apnea (OSA) is a common and potentially hazardous sleep-disordered breathing syndrome characterized by recurrent episodes of apnea and hypopnea during sleep due to partial or complete upper airway obstruction, leading to frequent hypoxemia and arousals, which in turn trigger a series of clinical pathophysiological complications. Common symptoms include snoring, apnea, and excessive daytime sleepiness.
According to the 2019 report “Obstructive Sleep Apnea and the Global Economic Burden” published in the prestigious international medical journal The Lancet Respiratory Medicine, obstructive sleep apnea (OSA) has affected the health of over 1 billion people worldwide. Among adults aged 30–69 years, there are 936 million individuals with mild-to-moderate OSA and 425 million with moderate-to-severe OSA. China has the highest number of OSA patients globally, reaching 176 million. However, the detection rate of OSA in China remains very low, at only approximately 1%.
Obstructive sleep apnea (OSA) has a high prevalence, significantly impairs quality of life, and readily leads to cardiovascular complications with high mortality rates, thereby exacerbating the disease burden on patients. With the continued rise in patient numbers and heightened awareness of health management and disease prevention, the demand for OSA diagnosis and treatment in China will further expand.
Based on the aforementioned unmet clinical needs, Daobo Medical has independently developed"The World's First Diagnostic-Grade Contactless OSA Screening App—'Shui Hao Le Me'"This patented technology records data on the user’s sleep breathing patterns, snoring during sleep, and body movements, supplemented by multiple intelligent algorithms such as snore recognition, body movement recognition, and maxillofacial image recognition. It provides diagnostic-grade sleep monitoring reports for patients with sleep-disordered breathing, enabling potential sleep apnea patients to achieve early detection, diagnosis, and treatment.
Currently, this productClinical validation has been conducted at the sleep centers of top-tier medical institutions in China, with initial results being highly promising and meeting diagnostic-grade standards. The technology is also currently under license-out negotiations with European and American companies.
Did you sleep well?
Meanwhile, Daobo Medical has also launchedAI-Driven Digital and Intelligent OSA Treatment Solution (Integrated Hardware and Software).Continuous monitoring of patients via therapeutic hardware terminals,Seamlessly integrate patients' home sleep health data with remote disease management services, enabling physicians to conduct long-term, uninterrupted monitoring and provide timely interventions.. This closed-loop system can significantly enhance patient adherence and the accessibility of diagnosis and treatment services, thereby achieving better therapeutic outcomes.
In terms of commercialization, Daobo Medical has explored a unique and diverse commercialization pathway.
For hospital-side users,The Respiratory Specialty Clinical Decision Support System has been contracted by over 200 secondary and tertiary hospitals across China, promoting the standardized development of sleep medicine disciplines from the top down. For B-end users, it has established in-depth collaborations with leading pharmaceutical companies, medical device manufacturers, oxygen suppliers, and smart hardware vendors in the respiratory specialty sector. For C-end users, Daobo Medical is strategically deploying digital therapeutics (DTx) to achieve comprehensive coverage of disciplinary disease types, with an expected two to three DTx products obtaining regulatory approval this year. The expansion of its product pipeline matrix is progressing rapidly.
Daobo Medical’s remarkable achievements within less than a year of its establishment are inextricably linked to the exceptional capabilities of its founding team.
Dr. Fei Qi, Founder and CEO, combines expertise as a clinical specialist, scholar, and business executive.She is a former Associate Chief Physician in the Department of Respiratory Medicine at the Chinese PLA General Hospital (301 Hospital), holds a Medical Doctorate, and served as a Visiting Scholar at Harvard Medical School, Boston Medical Center, and the University of Hong Kong. She also holds an MBA from Fudan University and previously held key leadership positions at major domestic digital health enterprises. She is the former Chairperson of the Board of the Collaborative Medical Health Foundation.
Dr. Fei Qi
Dr. Sun Jianguo, ChairmanPh.D. in Biomedical Engineering from Tufts University (New England Medical Center), Professor at Fudan University, and a serial entrepreneur with consecutive successes in the global respiratory care sector. Formerly an executive at Philips Respironics and one of the key developers of the world’s first “digital non-invasive ventilator.” Subsequently founded innovative medical service companies in the U.S. respiratory field, including Vitalog and Contec Medical Systems (Kaiditai), achieving successful exits through mergers and acquisitions. Former CEO of ResMed China, where he led the home ventilator business to a leading industry position. Possesses extensive experience in corporate governance, innovation, and strategy.
The rest of the core team comprises executives with prior experience at major multinational pharmaceutical and healthcare companies such as Siemens, Johnson & Johnson, Roche, and GSK; project leaders from well-known domestic digital health enterprises like Huimei Medical and Xinyi International; and technical experts who have taken on independent leadership roles at Alibaba Cloud and Wanda Information, a leading listed company in medical informatics. The team possesses broad and complementary capabilities, combining global and local perspectives with practical experience. It demonstrates strong innovation and scalability, forming a multidisciplinary team proficient in medicine, engineering, and business.
Committed to becoming a “world-leading digital healthcare ecosystem enterprise specializing in respiratory care,” Daobo Medical not only prioritizes the development of internal talent pipelines but also continuously strengthens its academic and professional expertise.
Daobo Medical has co-authored industry standards such as the "Expert Consensus on Remote Therapy for Sleep Disorders in China," "Smart Home Health Monitoring Devices," and "Wearable Health Management Devices" with top domestic industry experts. By establishing a specialized platform for respiratory medicine and collaborating with leading respiratory experts both domestically and internationally, Daobo Medical ensures the forward-looking nature of its research and the authority of its technologies. Anchored at the forefront of academic excellence, the company has systematically laid out comprehensive coverage across all disease categories within specialized fields, creating a closed-loop system encompassing "promotion, prevention, diagnosis, control, treatment, and rehabilitation" for each specialty.
Regarding the future development of Daobo Medical, Dr. Qi Fei has long envisioned a clear blueprint: “Our next step is to expand into international markets, introducing advanced foreign technologies while also taking our solutions global. The company will establish collaborations with Harvard Medical School and several U.S.-listed companies. In terms of R&D, we will extend our focus to a broader range of respiratory and related chronic disease indications. This will help us truly realize our vision of making digital respiratory healthcare accessible to all, enabling everyone to breathe freely and comfortably.”
Reference: Eastday.com, “Latest Survey Shows: Approximately 100 Million People in China Have COPD, with a Misdiagnosis Rate as High as 70%!”