Yichen Cloud Health Secures Tens of Millions in Series A Funding to Combat Healthcare-Associated Infections and Reduce Medical Costs

VCBeat has learned that Guangzhou Yichen Cloud Health Technology Co., Ltd. (“Yichen Cloud Health”) recently completed an A-round financing of tens of millions of yuan, led by Guangzhou Danlu Venture Capital Fund Partnership (Limited Partnership), with participation from Guangzhou Chuangyu Mingchen Equity Investment Fund Partnership (Limited Partnership) and Tsingyuan Ventures I LP. The proceeds will be primarily used for factory construction, clinical trials, and product registration filings.

Headquartered in Guangzhou, China, Yichen Cloud Health has established an R&D center and a subsidiary in Silicon Valley, USA. Committed to preventing healthcare-associated infections through innovative technologies, the company boasts proprietary technology and multiple global patents. Its products are marketed worldwide, with the aim of serving more patients and advancing human health.

According to the "Hospital Infection Control Market Analysis Report" released by VCBeat, China experiences 4 million cases of hospital-acquired infections annually, with the direct economic loss per infected patient in general hospitals ranging from RMB 11,229 to RMB 33,187.

The hazards of hospital-acquired infections are becoming increasingly severe and drawing growing attention, yet there are relatively few related products. To this end,Yichen Cloud Health specializes in hospital infection prevention and control, having pioneered the development of a catheter-related bloodstream infection (CRBSI) prevention and control device as well as a neonatal umbilical care device.

The development of devices for the prevention and control of catheter-related bloodstream infections, as well as neonatal umbilical care devices, was a decision made by Yichen Cloud Health after careful consideration.

Dr. Jiang Qiongcheng, CEO of Yichen Cloud Health, explained: “First, I have a medical background myself, and I knowCatheter-Related Bloodstream Infections Are Highly Challenging. They Not Only Prolong Hospital Stays and Increase Medical Costs, but Also Result in High Patient Mortality.”

Taking bloodstream infections as an example, the incidence rate in the United States is 5.3 cases per 1,000 catheter-days. Bloodstream infections can lead to severe complications such as disseminated intravascular coagulation and acute heart failure, with a mortality rate of 25%–30%. Furthermore, hospital stays for affected patients are prolonged by 7–15 days, resulting in additional annual expenditures of $20 billion to $30 billion for the U.S. healthcare system.

Second, during her involvement in other catheter-related projects, Dr. Jiang Qiongcheng learned thatThere is currently a lack of relevant solutions on the market., and the infection rate caused by catheters is very high.

A 2012 study indicated that 60% of healthcare workers failed to adhere to the six-step hand hygiene technique, wear masks upon entering patient rooms, or perform hand hygiene after handling medical records and patient belongings. In actual clinical practice, non-compliant procedures are prevalent among physicians, nurses, and medical technologists alike, contributing to the high incidence of healthcare-associated infections, such as catheter-related bloodstream infections.

Third, the United States places great emphasis on healthcare-associated infections such as catheter-related bloodstream infections (CRBSI). To date, the U.S. has implemented prevention and control measures for CRBSI for over a decade.

Nosocomial infections, such as catheter-related bloodstream infections, cost the U.S. healthcare system an additional $20 billion to $30 billion annually.Consequently, the U.S. healthcare system has increasingly focused on hospital-acquired infections. In response, the U.S. Centers for Disease Control and Prevention (CDC) has long issued the Guidelines for the Prevention of Intravascular Catheter-Related Bloodstream Infections, which have been updated through multiple editions. The CDC and hospital administrations maintain a zero-tolerance policy toward catheter-related bloodstream infections, having established stringent systems for monitoring and reporting, grading, incentives and penalties, and reimbursement.

Fourth, Yichen Cloud Health assessed the market size of catheter-related bloodstream infections and found it to be a substantial market.

According to Yichen Cloud Health's calculations,The global market for catheter-related bloodstream infections is valued at approximately $40 billion, with the Chinese market accounting for $6–10 billion and a projected compound annual growth rate (CAGR) of 12%.

(Provided by the company)

Therefore, after screening more than ten projects, the founding team ultimately selected the project for a catheter-related bloodstream infection prevention and control device.

In fact, catheter-related bloodstream infections (CRBSIs) have plagued the United States for many years. Entrepreneurs and innovators in this field have predominantly focused on catheter-based solutions. However, after reviewing extensive literature, Yichen Cloud Health discovered that this approach was misguided, as over 65% of CRBSI cases originate from infections at the skin surrounding the catheter insertion site. Consequently, Yichen Cloud Health shifted its strategy, prioritizing the prevention and control of insertion-site infections as its core research focus. Jiang Qiongcheng told VCBeat, “After adjusting our approach, the product we developed has demonstrated excellent efficacy.”

Yichen Cloud Health participated in the 2020 “Maker Guangdong” Biopharmaceutical Special Competition with this project and received recognition from the judges and experts. Jiang Qiongcheng stated, “This competition provided a platform for us to showcase and promote our work, raising awareness of our company among a broader audience. Additionally, during the competition, we connected with many professionals in the pharmaceutical industry, facilitating exchanges that have contributed to our company’s development. Finally, the event organizers, including Guangdong Medical Valley, helped us connect with investors and industry experts, offering us valuable advice.”

Standing out among numerous competition entries also serves as a testament to the excellence of Yichen Cloud Health. “There are only two competing products for catheter-related bloodstream infection (CRBSI) prevention devices worldwide, and this device significantly outperforms its competitors in terms of performance.”

Catheter-Related Bloodstream Infection Prevention and Control Devices are used to prevent infections that may occur during catheter insertion. Application scenarios include cancer chemotherapy, intensive care, hemodialysis for renal failure, parenteral nutrition support, and surgery. Currently, cancer chemotherapy represents the largest application scenario. Due to the large number of cancer patients requiring long-term catheterization during chemotherapy, there is a higher risk of developing catheter-related bloodstream infections.

Jiang Qiongcheng stated, “The U.S. CDC has established guidelines for catheter-related bloodstream infections (CRBSI), covering clinical operational procedures for healthcare professionals and the efficacy and performance requirements for ideal medical devices. Currently, CRBSI prevention devices on the market fail to meet all the requirements outlined in these guidelines and may even cause adverse effects, whereas Yichen Cloud Health’s products fully comply with the guideline standards.”

Upon closer examination, Yichen Cloud Health has overturned conventional product design philosophies. Previously, R&D teams focusing on medical devices for catheter-related bloodstream infections (CRBSI) primarily targeted the catheter itself. In contrast, Yichen Cloud Health addresses infection control at the puncture site. Furthermore, due to its distinct underlying mechanism, Yichen Cloud Health implemented bold structural innovations during the product design phase.

Jiang Qiongcheng explained, “The product structure of the catheter-associated bloodstream infection prevention device has changed from the original compression-covered type to a non-contact windowed type. After the innovation in product structure, the requirements for raw materials are higher. Therefore, Yichen Cloud Health has made many innovations in materials to meet the structural requirements. After the sample production was completed, we conducted clinical trials in the United States, and the results showed less bacterial growth and simpler product operation.”

Compared with other products that require 15–20 minutes for each replacement, Yichen Cloud Health’s catheter-related bloodstream infection (CRBSI) prevention device can be replaced in just 5 minutes. Furthermore, patients can be trained to use the CRBSI prevention device at home, significantly improving efficiency. Notably, previous products were limited by their structure and materials, making them unsuitable for some children, infants, and individuals with allergies. Yichen Cloud Health has now redesigned the product to expand its applicability to include patients who were previously unable to use such devices.

Jiang Qiongcheng stated, “The catheter-associated bloodstream infection prevention device and the neonatal umbilical care device feature innovations in structure and materials, significantly enhancing product functionality and performance. Furthermore, we have innovated our manufacturing processes to support these structural and material advancements. As a result, multi-faceted innovation has become one of Yichen Cloud Health’s core competencies, making it difficult for other companies and teams to replicate.”

The founding team of Yichen Cloud Health is also one of its core competitive advantages. Dr. Jiang Qiongcheng, the company’s CEO, graduated from Sun Yat-sen University and Stanford University in the United States. She has designed and developed multiple disruptive innovative medical products, driving consecutive years of doubled profits for her enterprises, and is a successful serial entrepreneur. Tina Tang, the CFO, graduated from Johns Hopkins University in the United States with a Master’s degree in Public Health Economics and previously served as a Senior Analyst at Morgan Stanley in the United States. Dr. Tang Erhu, the COO, formerly held executive positions at multinational medical device companies Baxter and Edwards Lifesciences, and brings over 20 years of successful experience as an independent entrepreneur in the medical device industry.

Jiang Qiongcheng stated, “Our team members focus on multiple areas, including product R&D, translational manufacturing, laws and regulations, market management, and corporate management. Our team has been tempered by extensive social experience, technical expertise, and market capabilities. We are deeply rooted in China while maintaining an international perspective, and we possess a profound understanding of the healthcare industry. The backgrounds and specialties of our members are well-matched and complementary, forming a cohesive and highly competitive team.”

Jiang Qiongcheng told VCBeat that Medicare annually rates and publicly discloses infection prevention and control performance for nearly 4,000 hospitals across the United States on professional websites, imposing penalties on those that fail to meet standards. Hospitals with outstanding infection prevention and control performance are eligible for relevant rewards and tax incentives. A key metric in this assessment is catheter-associated infections.

Taking Centra Health in the United States as an example, this hospital group consists of three branches, employs over 7,250 staff members, and provides medical services to approximately 380,000 people. A health economics study conducted in 2017 showed that Centra Health’s adoption of Yichen Cloud Health’s products generated cost savings exceeding $8 million.

(Image provided by the company)

Yichen Cloud Health’s first-generation product has achieved remarkable success in the United States. Currently, its first-generation catheter-related bloodstream infection (CRBSI) prevention device has received FDA approval in the U.S. As Yichen Cloud Health plans to iterate the product, update its related supply chain, and upgrade quality control standards, the product is expected to be launched for sale in the U.S. in the fourth quarter of 2021, and to enter the Chinese market within two years. In the future, Yichen Cloud Health will build an infection control data platform to monitor and prevent healthcare-associated infections. Additionally, leveraging the advantages of its biotechnology platform, Yichen Cloud Health will determine its R&D roadmap based on unmet clinical needs, such as developing innovative products for biological surgical hemostasis and scar reduction through rapid and efficient research and development.

The 2020 “Maker Guangdong” Biopharmaceutical SME Innovation and Entrepreneurship Competition, guided by the Provincial Department of Industry and Information Technology and the Provincial Department of Finance and hosted by Guangdong Medical Valley, focused on the biopharmaceutical sector. With over 100 project registrations, the competition comprised five online preliminary rounds and one offline specialized final round. Twelve high-quality projects were recommended to advance to the provincial semi-finals, all of which ranked among the top 10 in their respective Enterprise and Maker categories.

Guangdong Medical Valley is a service provider for medical industry clusters, specializing in investment and incubation within the biopharmaceutical and medical device sectors. Its first medical industrial park, located in Nansha, Guangzhou, is a key municipal project with a total gross floor area of 180,000 square meters. Currently, more than 180 enterprises have settled in the park, including two companies founded by academicians and 13 participants in national major projects. Leading enterprises such as Boya Ji Yin (EdiGene), Genetron Health, and Tiankeya have been introduced, covering various sub-sectors including biopharmaceuticals, gene editing, vaccines, immunotherapy, high-end medical devices, stem cells, and medical industry funds. The park is committed to building a world-class international innovation center for the medical industry.

References:

Investigation and Analysis of Medical Personnel’s Awareness of Healthcare-Associated Infections and Their Protective Behaviors, Authors: Zhou Ying, Chen Xianjie, Deng Lianfeng, Zhou Zhiying