QY Health Secures Tens of Millions RMB in Series Angel Funding Led by Matrix Partners China to Accelerate Respiratory Chronic Disease Management Platform

On February 23, Qiyi Medical Technology Co., Ltd. announced the completion of its angel financing round, raising tens of millions of yuan. The round was exclusively invested by Matrix Partners China. The proceeds will support Qiyi Medical in accelerating the development of a comprehensive management platform for respiratory diseases, further strengthening the company’s leading position in the field of chronic respiratory conditions.

Qiyi Medical, established in April 2020, is committed to building a leading platform in the field of chronic respiratory diseases, focusing on the development of full-course disease management systems and digital diagnostic and therapeutic products. By empowering physicians and hospitals to better serve patients, Qiyi Medical addresses the core pain points in the diagnosis, treatment, and management of chronic respiratory diseases.

It is worth noting that Qiyi Medical was also among the first batch of enterprises to settle in the Wuxi International Science and Innovation Park. By the end of December 2020, Qiyi Medical, which had been established for only eight months, had achieved cumulative revenues exceeding RMB 10 million.

Currently, Qiyi Medical’s standardized full-course management system for chronic obstructive pulmonary disease (COPD) has been implemented in Zhumadian City, Henan Province. Over 4,000 physicians have registered to use the system, enabling standardized full-course management for 500,000 COPD patients. Meanwhile, Qiyi Medical’s early screening system for COPD has covered more than 1,200 tertiary and secondary hospitals across China, completing risk screenings for over 2 million individuals. This significantly highlights the momentum accumulated by Qiyi Medical through its early entry into the vertical sector of chronic respiratory diseases. In 2021, multiple digital therapeutic products from Qiyi Medical are progressively entering clinical trials and regulatory approval stages, further strengthening its competitive barriers and leading position in the niche field of chronic respiratory diseases.

Matrix Partners China stated, “Qiyi Medical represents another early-stage investment by Matrix in the digital health sector. Through extensive collaborations with top-tier medical experts, leading pharmaceutical companies, and healthcare institutions, the Qiyi Medical team has established a clear business model in the field of respiratory diseases within less than a year. Leveraging precise data accumulation, they have developed digital diagnostic and therapeutic products with clinical value. We look forward to the company’s growth into a leading enterprise in this field.”

Respiratory diseases are characterized by high transmissibility, difficulty in early detection, rapid progression, and challenges in control, making them historically the hardest-hit areas during large-scale epidemics. Currently, there are approximately 100 million patients with chronic obstructive pulmonary disease (COPD) in China, around 45.7 million asthma patients aged 20 and above, and more than 800,000 new cases of lung cancer diagnosed annually. Respiratory diseases have become one of the three major chronic conditions, on par with hypertension and diabetes. Strengthening the prevention, control, and treatment systems for respiratory diseases has become the next strategic focus in the development of China’s public health system.

Patients with chronic respiratory diseases not only constitute a large population but also incur high medical expenditures. Data indicate that for chronic obstructive pulmonary disease (COPD), the total treatment cost per patient accounts for 40% of the average household’s total income. COPD patients experience approximately 0.5 to 3.5 acute exacerbations annually, with an average hospitalization cost of nearly RMB 12,000 per episode. When post-acute rehabilitation costs are included, the market potential is substantial; sales of medications for chronic respiratory diseases alone have exceeded RMB 10 billion.

Ms. Song Siyi, Founder of Qiyi Medical, has previously held positions at several internationally renowned pharmaceutical and medical device companies, including AstraZeneca, Roche Pharmaceuticals, and Johnson & Johnson Medical. With 15 years of experience in managing pharmaceutical and medical device products, she is well-versed in chronic disease management and digital innovation solutions across therapeutic areas such as cardiovascular diseases, diabetes, and respiratory conditions. The founding team of Qiyi features a multidisciplinary blend, comprising serial healthcare entrepreneurs with deep insights into the pain points of chronic disease management, as well as medical network experts who have cultivated extensive specialist resources through years of dedication to comprehensive disease management. The diversity and professionalism of the Qiyi Medical team provide it with distinct advantages for achieving breakthroughs in the field of chronic respiratory diseases.

Qiyi Medical's First Product: "Qi Yi"Leveraging artificial intelligence and digital innovation to empower disease management, and integrating smart hardware, we provide hospitals and government agencies with comprehensive solutions for respiratory diseases, covering risk screening, diagnosis and treatment, patient follow-up, and two-way referrals. Our offerings include a SaaS-based management system, data analytics, an out-of-hospital follow-up system, and patient-facing services, thereby strengthening standardized management across the entire patient journey. Qiyi initiates its approach with chronic obstructive pulmonary disease (COPD) and gradually extends support to the full-course management of various respiratory conditions.

Furthermore, Qiyi Medical has rapidly entered healthcare institutions at all levels through its “city-wide model” strategy, quickly securing physician resources, attracting patients to join its disease management platform, and enhancing patient stickiness via an intelligent follow-up system. By covering patients’ real-world data both inside and outside hospitals through omni-channel interfaces, it standardizes patient diagnosis and treatment processes.

Leveraging high-quality, end-to-end disease management data and extensive expert resources, Qiyi Medical has currently initiated three clinical trials in the areas of early screening, critical care treatment, and respiratory disease rehabilitation. In 2021, based on the results of these clinical trials, Qiyi Medical will accelerate the development and registration of its various digital diagnostic and therapeutic products in the field of respiratory diseases, establishing a closed-loop care pathway from government to hospitals, physicians, and patients, while strengthening its technological barriers and channel advantages. Currently, Qiyi Medical has partnered with nine leading respiratory disease hospitals across China to conduct prospective clinical studies involving more than 2,000 patients, and plans to initiate regulatory registration submissions by the end of 2021.

Digital therapeutics are software-based diagnostic and therapeutic products that provide patients with evidence-based treatment interventions to prevent, manage, or treat diseases, and they represent one of the most prominent focal points in the current smart healthcare industry. In terms of regulatory approval, during the pandemic period from March to April 2020, the FDA added six new digital therapeutics (including threeEmergency-approved digital therapeutics) serve the public. Additionally,Traditional pharmaceutical and medical device companies are also increasingly strengthening their collaborations with digital therapeutics firms, extending their product pipelines through the integration of digital therapeutics—a trend that is gaining momentum within the industry.Digital therapeutics have shown strong momentum this year. Whether it is the FDA’s easing of emergency approval requirements or the increase in approvals and partnerships, a clear industry trend has emerged: digital therapeutics are gradually entering a phase of accelerated development.

Qiyi Medical’s digital therapeutics (DTx) products for respiratory diseases can be used either as standalone interventions or in combination with pharmaceuticals, diagnostic tools, or rehabilitation equipment. Adhering to a “begin-with-the-end-in-mind” R&D philosophy, these DTx solutions identify value opportunities based on practical experience in building comprehensive management systems for respiratory diseases. By leveraging city-wide pilot programs to assess the potential of digital transformation, Qiyi Medical subsequently subjects its optimized DTx products to clinical validation and commercialization. Developed under this R&D framework, the DTx products achieve a closed-loop disease management process supported by specialized respiratory care services, thereby delivering superior long-term benefits to patients, addressing critical pain points in specialty disease management, and unlocking greater value.

Matrix Partners China is one of the most active venture capital firms in the early-stage market. Over the past decade since its establishment, it has remained deeply rooted in the local ecosystem, steadfastly supporting Chinese entrepreneurs. Matrix Partners China has invested in more than 700 companies, including publicly listed enterprises such as Li Auto, XPeng Motors, RemeGen, Peijia Medical, and Kemin Diagnostics, as well as leading internet companies like Didi Chuxing, Ele.me, Guazi Used Cars, Futu Holdings, Lexin Fintech, Momo, Liepin, Yuanfudao, and VIPKID. Additionally, it has backed a large portfolio of high-quality healthcare companies, including Kemin Diagnostics, Taimei Medical Technology, Zhiyun Health, Zenith BioMed, Drug Research Club, InnoCare Pharma, and D3 Bio.