Becan Medical's First Post-IPO Industrial Acquisition Targets Male Fertility IVD Diagnostics Market

On November 3, 2021, Suzhou Beikang Medical Co., Ltd. (hereinafter referred to as “Beikang Medical”) successfully held an online press conference announcing its acquisition of Zhejiang Singbo Biotechnology Co., Ltd. (hereinafter referred to as “Singbo Biotech”). Xue Zhigang, Founder of Singbo Biotech; Huang Wen, General Manager of Singbo Biotech; Liang Bo, Founder of Beikang Medical; and Dai Jing, Chief Financial Officer of Beikang Medical, attended the conference, which was moderated by Xiao Jialong, Vice President of Investment Banking and Capital Markets, Asia Pacific, at Credit Suisse.

Currently, the prevalence of infertility in China has risen to approximately 12%-15%, with male factors accounting for about 40% of cases. The domestic market size for male infertility testing is projected to exceed RMB 7.8 billion, whereas the current market size stands at only RMB 500 million. There remains a significant gap between the current market and the theoretical total market capacity, with the former representing merely 6.41% of the latter, indicating substantial room for future growth. At present, the domestic assisted reproductive technology (ART) market is still in its early stages, characterized by a lack of industry standardization and an undeveloped competitive landscape. This presents an optimal opportunity to optimize internal structures, expand production capacity, and strategically position for future market share. Acquiring companies and integrating superior resources represents one of the most effective strategies to achieve this.

Beikang Medical’s acquisition of Xingbo Biology represents a consolidation among industry leaders, forging a powerful alliance between a specialist in male sperm selection solutions and a leader in precise embryo selection solutions. This integration establishes a comprehensive suite of assisted reproductive screening solutions, optimizing industrial structure and accelerating commercialization through complementary advantages and collaborative innovation.

Xingbo Biology is a high-tech enterprise specializing in reproductive medicine, with sperm cell functional testing as its core business. It possesses strong scientific research capabilities and robust services for the translation of industry-academia-research achievements into practical applications. The company has received numerous awards, including the Second Prize of the National Science and Technology Progress Award of China. Xingbo Biology is one of the earliest-established and largest male health IVD (In Vitro Diagnostics) companies in China, as well as one of the country’s largest suppliers of flow cytometry test kits. Its developed Sperm DNA Fragmentation Index (DFI) assay enables accurate DFI testing for both total sperm and viable sperm populations, gaining recognition from mainstream clinical practitioners in China. This technology has facilitated the inclusion of DFI testing in the "Expert Consensus on Male Reproductive Genetic Testing" and the "Guidelines for the Diagnosis and Treatment of Male Infertility." The company has undertaken 13 research projects, including seven at the national level, and has secured 13 patents and three software copyrights. Notably, Xingbo’s DFI kit has obtained medical device registration certification from the National Medical Products Administration (NMPA), software copyright for its accompanying analysis software, and a patent certificate for viable sperm sorting technology. Xingbo Biology maintains close technical collaborations with prestigious institutions such as the Chinese Academy of Sciences, the Chinese Medical Association, the Chinese Society of Sexual Medicine, the State Key Laboratory of Reproductive Medicine, the National Engineering Research Center of Human Assisted Reproduction and Eugenics, Peking University, Tongji University, Nanjing Medical University, and Harbin Institute of Technology, while carrying out a series of highly effective industrialization initiatives. The company’s business coverage extends across 30 provinces, municipalities, and autonomous regions in China, establishing cooperative relationships with over 400 clinical medical institutions and providing testing services to more than two million couples preparing for pregnancy.

Professor Xue Zhigang, founder of Singbo Bio, stated that Beikang Medical possesses substantial strength in the field of assisted reproductive IVD. This acquisition will fully leverage Singbo Bio’s advantages in andrology, helping Beikang Medical achieve new heights in technological R&D and innovation within the andrology sector. Coupled with artificial intelligence technology, this move aims to thoroughly break through Beikang Medical’s current technical bottlenecks in andrology. Meanwhile, Singbo Bio can utilize Beikang Medical’s advantageous resources to continue its deep engagement in the assisted reproduction industry, creating a novel “hardware + software” industrial model and building a comprehensive industrial chain covering the entire reproductive lifecycle from preconception to prenatal care and neonatal stages.

Dr. Liang Bo, founder of Berry Genomics, stated that China’s biopharmaceutical industry has entered a phase of scaled industrial development, necessitating industrial consolidation among leading enterprises to achieve strong alliances and create a synergistic effect where “1+1>2.” With years of strategic presence in the men’s health sector, Xingbo Biology enjoys high product recognition and brand visibility. The collaboration between Xingbo Biology and Berry Genomics will integrate resources from both parties—particularly in Xingbo’s men’s health business and Berry Genomics’ broader capabilities—to enable sharing of channels, academic expertise, and technologies. Together, they will jointly develop, register, and manufacture test kits and instruments, accelerating the substitution of imported platforms and instruments with domestically produced alternatives. This partnership aims to continuously expand their footprint in men’s health and deliver a more comprehensive, full-cycle fertility solution for patients suffering from infertility. The goal is to establish Xingbo Biology not only as the largest but also as an internationally leading specialized platform in men’s health, thereby jointly promoting the healthy development of the assisted reproductive technology industry.

The past decade has been a period of technological innovation in biomedicine; the next decade will witness industry leaders engaging in consolidation and acquisitions, steering the sector toward standardized development. The merger of two leading companies in the assisted reproductive technology (ART) field marks a significant event in the in vitro diagnostics (IVD) industry. The growth of the ART sector necessitates sustained market investment and R&D in technical equipment by leading enterprises. Beikang Medical is committed to building a larger platform for R&D and innovation, creating comprehensive solutions covering the entire reproductive lifecycle, facilitating the translation of scientific and technological achievements, and accelerating industrialization. Aiming not only for domestic leadership but also for international prominence, Beikang Medical seeks to make its ART technologies accessible to patients worldwide.