Jiamei Bio Aims to Redefine the POCT Market with Quality as the Core in Its Next Growth Phase

“The first half of the ‘golden decade’ for China’s POCT market has ended; the era of unbridled growth is over, and the second half of a new golden age has just begun, with POCT returning to its essence.” This is Liu Hongjian, Chairman of Jiamei Bio, on his assessment of the POCT market.

Liu Hongjian likened the development of China’s POCT industry to a battle. The first half was characterized by wild, organic growth from scratch, with numerous enterprises flooding into the sector and earning their initial profits. However, this also led the industry into a predicament marked by low recognition of POCT products, low market concentration, and low technological standards.

In the second half of the POCT era, POCT will return to its essence, with technological proficiency and quality becoming the core competitive barriers for enterprises.

Liu Hongjian’s understanding of the POCT market stems from her years of experience and accumulation in the field. Prior to founding Jiamei Biotech, the company’s core team had previously established an IVD enterprise that was later acquired. Liu Hongjian told VCBeat (WeChat ID: vcbeat), “Jiamei Biotech may appear like a newborn in the industry, but our core team consists of veterans who have been tempered through the first half of the game.”

Currently, Jiamei Bio, a nascent startup, has just completed its tens-of-millions RMB Pre-A financing round, led by AoYin Capital.

At the beginning of the interview, Liu Hongjian did not dwell on Jia Mei Biotech; instead, he discussed the IVD company he had previously led and the broader POCT landscape.

The core team of Jiamei Biotechnology previously led a prominent U.S.-owned enterprise to achieve significant market share in products for the detection of cardiovascular diseases, infectious diseases, and kidney diseases. In 2017, that company was acquired in an all-cash transaction worth RMB 1.18 billion by a well-known listed company. Having personally participated in the first half of the POCT industry’s development, she summarized this phase as characterized by “three lows and two highs.”

“Two Highs” refer to high gross profit margins and high growth rates, while “Three Lows” denote relatively low overall technological sophistication, limited widespread recognition among hospitals, and low industry concentration.

Liu Hongjian stated, “Over the past decade, many have perceived POCT products as having low entry barriers and high gross margins, leading to a rush into the market. However, very few companies truly possess substantial technological expertise. When we entered the in vitro diagnostics industry, we were among the first to develop POCT products and made significant technical breakthroughs in product accuracy. Subsequently, the market has affirmed the credibility of our products.”

Market data also corroborates the “two lows and three highs” characteristic of the POCT industry. Over the past two decades, POCT has been the fastest-growing subsector within the IVD field. However, the global POCT market size reached approximately USD 17.5 billion in 2018, accounting for about 30% of the IVD market. In contrast, China’s POCT market totaled only around USD 1.4 billion in 2018, representing merely 11% of its IVD market, a significantly lower proportion. More than half of the domestic POCT market share is held by imported products from foreign manufacturers. (Data sources: Rncos, China Merchants Securities)

However, the end of the era of unbridled growth does not mark the final destination for POCT. With technological advancements and market maturation, the POCT industry is shifting from qualitative to quantitative analysis, ushering in the second half of its development. Liu Hongjian characterizes this phase as a “return to essentials,” with the core essence of POCT being precision, speed, and high cost-effectiveness. Breaking through the market ceiling for POCT also hinges on these three pillars.

In the current POCT market, tertiary hospitals represent the primary segment, yet the penetration rate remains below 20%. There is still room for growth in clinical department applications. Furthermore, emergency care and tiered diagnosis and treatment applications will be the main drivers of POCT market expansion.

In emergency care settings, the former National Health and Family Planning Commission explicitly stated in the "Notice on Issuing the Action Plan for Further Improving Medical Services (2018–2020)" that all medical institutions at Level II and above must establish emergency centers, including Chest Pain Centers, Stroke Centers, Trauma Centers, Centers for the Treatment of Critically Ill Pregnant Women, and Centers for the Treatment of Critically Ill Newborns. These five major centers aim to address critical emergency care needs, necessitating the widespread deployment of point-of-care testing (POCT) devices to meet the demands for speed, urgency, and early prediction.

In the tiered diagnosis and treatment market, currently only 10%-20% of primary healthcare institutions are equipped with POCT testing devices. Driven by policy initiatives, the penetration rate of POCT usage at the primary care level is expected to increase. Primary care institutions have more diverse requirements for POCT: low upfront investment, ease of operation, low after-sales service costs, while still ensuring accuracy.

There is robust demand in the POCT market; however, few products currently embody the true essence of POCT. Only a handful of companies possess leading technological platforms capable of enabling refined implementation of tiered diagnosis and treatment as well as real-time regulatory oversight.

It goes without saying that a company’s technological platform will become the core competitive barrier in the second half of the POCT game, and those unable to keep pace will be eliminated during the market reshuffle.

The second half will be an era where quality reigns supreme, which is why Jiamei Bio is confident in entering the market. Liu Hongjian stated, “In this next phase, the market demands quality and a focus on service to end customers. As members of the core team who participated in the first half, we have the strength and aspire to create products best suited for the market. Therefore, we have chosen to embark on a second entrepreneurial venture.”

Founded just 1.5 years ago, Jiamei Biology has already established three major technology platforms: multiplex immunochromatography, time-resolved fluorescence, and Raman spectroscopy-based detection. Building on these platforms, the company has independently developed a range of POCT diagnostic instruments and eight series comprising dozens of diagnostic reagents.

Throughout the product development process, Jiamei has consistently adhered to the principle that clinical outcomes are the sole criterion for evaluating its products. Liu Hongjian stated that during Jiamei Bio’s first entrepreneurial venture, the core team identified demands in the upstream market; therefore, in their second venture, Jiamei Bio aims to thoroughly capitalize on the market’s potential and develop products that align with market needs.

Liu Hongjian cited an example: “For instance, in chest pain centers, rapid diagnosis of myocardial infarction can be life-saving, which necessitates minimizing sample centrifugation time. Only a one-step whole-blood sampling process can meet the requirement of delivering test results within 20 minutes. In the primary healthcare market, POCT products also need to upload test data to higher-level hospitals, thereby enabling initial diagnosis at the primary care level, two-way referrals, separate management of acute and chronic conditions, and coordinated care between different tiers of healthcare institutions, ensuring continuous monitoring throughout the entire course of disease.”

In terms of product implementation, Jiamei Bio’s high-throughput fully quantitative immunoassay analyzer leverages a proprietary “high-throughput + compact footprint” structural design, achieving a testing throughput of up to 120 tests per hour while occupying half the volume of comparable instruments, making it lightweight and portable. Its single-channel fully quantitative immunoassay analyzer features a one-step whole-blood sample addition design for fully quantitative detection.

Jiamei Biotech has truly achieved a whole-blood, one-step POCT method that eliminates the need for centrifugation, with diagnostic accuracy genuinely approaching that of large-scale imported instruments.

Currently, Jiamei Biological’s products are capable of meeting the point-of-care testing (POCT) needs of Grade 3A hospitals, hospitals at all levels, community health service centers, Chest Pain Centers, Stroke Centers, regional testing centers, and physical examination centers.

In terms of operational design, Jiamei Biotechnology employs an extra-large high-definition touchscreen, allowing the entire workflow to be easily completed on the display. The analyzer features a flat UI design, enabling users to monitor sample testing status in real time. The product is also equipped with a facial recognition management system and a variety of communication interfaces.

In terms of reagent products, Jiamei Biology has developed dozens of reagents for the detection of cardiovascular diseases, kidney diseases, infectious diseases, and eugenics.

Bringing products down to grassroots medical terminals is not the ultimate goal Liu Hongjian aims to achieve in his second entrepreneurial venture. Liu believes that the future of POCT lies in the home health management market, and only by entering the vast market for personalized health management can the ceiling for POCT be broken.

Liu Hongjian told VCBeat, “The vast majority of patients still only seek medical examination after symptoms appear. Currently, the medical community relies on a single numerical threshold to diagnose disease, causing many individuals to miss the dynamic progression of their condition. If we can reduce testing costs and operational complexity, enabling the monitoring of other health indicators to become as ubiquitous as blood glucose testing in households, healthcare management platforms will significantly enhance the personalization of disease prevention and management, as well as the precision of medication.”

Taking cardiovascular diseases as an example, POCT products can perform long-term dynamic monitoring of conditions such as myocardial infarction and heart failure, facilitating early disease screening, medication adjustment, and chronic disease management. Coagulation-related products can be used to detect thrombus formation and embolism.

Liu Hongjian revealed that Jiamei Biotech has already begun commercializing its related products. At the end of 2018, Jiamei Biotech signed a strategic cooperation agreement with Jana Care, a U.S.-based company, to develop the handheld AinaX analyzer for international pharmaceutical companies, guiding precise medication management for heart failure patients. Meanwhile, Jiamei Biotech’s cost-effective cardiovascular testing products were integrated into Jana Care’s clinic and community platforms for diabetes management, actively participating in the niche market of point-of-care services for chronic disease management. The partnership also supported Jana Care’s FDA submissions in the United States and the expansion of its market operations across North America. In May 2019, Jiamei Biotech entered into a long-term collaboration with a major overseas channel distributor, launching “tailor-made” POCT product services in multiple countries across the Middle East and South America. By combining precise testing with personalized services, the company is vigorously advancing its global footprint in the IVD industry.

Having navigated the first half of the POCT journey, JiaMei Bio is now more confident, composed, and resolute. The company remains committed to a steady, step-by-step approach to developing products that best meet market needs.