Beikang Medical and DiAn Diagnostics Forge Exclusive Strategic Partnership to Launch Comprehensive Third-Party Reproductive Testing Service Package

On May 22, 2020, Suzhou Beikang Medical Instrument Co., Ltd. (hereinafter referred to as “Beikang Medical”) and Dian Diagnostics Group Co., Ltd. (hereinafter referred to as “Dian Diagnostics”) entered into an exclusive strategic cooperation agreement. Through this strategic partnership, both parties will fully leverage their respective advantages,Jointly develop the third-party medical testing market in the field of reproductive health, providing over 500 reproductive centers across China with an integrated and comprehensive third-party testing service package that covers more than 3,000 items, ranging from basic physiological, biochemical, immunological, and viral tests to molecular genetic testing.

Beikang Medical is the leading enterprise in the NGS niche market for reproductive health. Its self-developed third-generation IVF PGS kit is the first product of its kind approved for marketing by the National Medical Products Administration (NMPA Approval No.: 20203400181). As the “second license” in the reproductive field following the NIPT registration certificate, it marks the entry of China’s third-generation IVF technology into an era of regulated medical devices with formal certification, filling the technological gap in the clinical application of third-generation IVF. Beikang Medical’s products coverPreconception, prenatal, and neonatal stages across the entire reproductive lifecycle, with a complete industrial chain spanning R&D, registration, and production.This strategic partnership between Beikang Medical and Dian Diagnostics will further deepen product development by leveraging Dian’s extensive platform coverage,Promote full-life-cycle products to all regions covered by third-party medical laboratories.

Dian Diagnostics has established collaborative partnerships with over 400 clients nationwide, operates 39 provincial-level third-party medical laboratories, and provides testing and diagnostic services to more than 18,000 medical institutions across China. In 2019, the company achieved an operating revenue of RMB 8.453 billion. It has developed a comprehensive regional laboratory service system and built a chain-based service network, offering third-party medical laboratory services.“Broad Coverage”advantages. As a professional service company specializing in the testing of reproductive products related to molecular genetics, Beikang Medical is deeply committed to refining full-cycle testing products and services in the reproductive field, capable of providing comprehensive solutions for clinical practice, and possessing clinical service capabilities for reproductive products."High-Depth"Advantages.

According to the latest statistics, among the 517 assisted reproductive technology institutions in China, only nearly80 leading reproductive health centers possess comprehensive clinical testing capabilities,Under this strategic partnership, both parties will continue to focus on the research and development of products for physiological, biochemical, immunological, virological, and molecular genetic testing in the field of reproductive health. For each product, Beikang Medical will invite top domestic experts to ensure quality control during pre-analytical testing, review post-analytical reports, and provide comprehensive genetic counseling services throughout the entire process. This strategic collaboration will not only offer reproductive-related testing services to 517 assisted reproductive technology (ART) institutions across China but also empower hospitals committed to building robust reproductive genetics platforms by providing a complete package of third-party testing services.Help it build a third-party “Department of Reproductive Genetics,” equipping it with capabilities in testing, genetic counseling, and scientific research.Enable patients to access high-quality testing services at the lowest possible price, ultimately achievingA pioneering win-win-win scenario for patients, hospitals, and third-party medical testing laboratories.

In 2020, more than 500 assisted reproductive technology (ART) centers in China conducted approximately 1 million ART cycles in total. The top 80 first-tier ART centers accounted for about 500,000 cycles, while the remaining approximately 437 ART centers, lacking comprehensive testing capabilities in the field of reproduction, needed to leverage the robust testing capacities of third-party clinical laboratories to better serve patients. The strategic partnership between Beikang Medical and Dian Diagnostics helps enhance the comprehensive testing service capabilities of these ART centers.

For the 80 leading reproductive centers, the use of Beikang’s certified test kits is mandatory for conducting third-generation IVF testing. Based on 500,000 cycles, with an average of 10 embryos per cycle, a total of 5 million embryos require testing. At a unit price of RMB 3,500 per embryo,Market Size Reaches RMB 17.5 Billion; For the other 437 reproductive centers, the cost of routine assisted reproductive testing per cycle, covering physiological, biochemical, immunological, virological, and molecular genetic aspects, is approximately RMB 50,000. Based on 500,000 cycles,The market size reaches RMB 25 billion.

Currently, the market penetration rate of third-party medical testing laboratories in China is only about 5%, with a market size of approximately RMB 14.8 billion. Considering China’s healthcare system structure, which is dominated by public hospitals, and the fact that third-party medical testing laboratories started relatively late, the penetration rate is expected to reach about 8% by 2020, at which point the market for third-party medical testing laboratories in ChinaThe scale will reach 32.7 billion,The market has immense growth potential.The market size for comprehensive reproductive genetic testing is projected to reach RMB 100 billion between 2020 and 2023.

Currently, there are 50 million patients with infertility in China, among whom nearly 10 million require assisted reproductive technology (ART) to achieve pregnancy. However, most medical institutions in China currently have varying degrees of deficiencies in testing methods and technologies, resulting in a clinical pregnancy rate of only around 40% for in vitro fertilization (IVF). Testing capability is crucial to the success of assisted reproduction. The strategic cooperation between Beikang Medical and Dian Diagnostics will leverage their strong platform, technological, and service advantages to help medical institutions develop ART programs and provide comprehensive services in the field of reproduction, including testing, analysis, interpretation, genetic counseling, and reproductive department construction. Ultimately, this collaboration aims to benefit a wide range of patients with high-quality products and first-class services, supporting China’s eugenics and healthy childbirth initiatives.

Suzhou Beikang Medical Instrument Co., Ltd., established in 2010, is a leading enterprise in the reproductive health niche market. It operates four independent clinical laboratories and 31 joint laboratories across China, focusing on the application and research of genetic technologies in the field of reproduction. In response to clinical needs, the company has innovatively developed products covering the entire reproductive cycle—preconception, prenatal, and neonatal stages—thereby establishing three robust lines of defense to reduce birth defects. Furthermore, Beikang Medical’s independently developed PGS kit received the industry’s first medical device registration certificate this year (National Medical Device Registration No.: 20203400181), marking the formal entry of third-generation IVF PGS testing into an era of certified regulation.

Dian Diagnostics Technology Group Co., Ltd. was established in 2001 and is a leading third-party independent medical diagnostic service provider in China. It has set up 39 independent medical laboratories across 31 provinces, municipalities, and autonomous regions in China, committed to providing customers with “integrated solutions for medical diagnostics.” Since its listing in 2011, Dian Diagnostics has actively promoted a development strategy focused on expanding multi-service areas based on its third-party independent medical diagnostic platform and integrating the upstream and downstream industrial chains. Its business covers independent medical laboratories, marketing of diagnostic products and services, R&D and manufacturing of diagnostic technologies, forensic appraisal, health check-up services, CRO (Contract Research Organization), cold-chain logistics, biobanks, and other fields.