Hemosmart MedTech Files IPO Prospectus: Pioneering Microfluidic Diagnostics with Lineage to Solexa and Backing from Ziniu and InnoAngel
The United Kingdom is renowned worldwide for its arts and culture, with theaters, academic institutions, and streets throughout its cities showcasing the beauty of Britain. It is also a hub for technological innovation; next-generation sequencing (NGS) and nanopore sequencing, both globally acclaimed, originated from the UK’s “Golden Triangle” universities. Furthermore, the country is one of the birthplaces of microfluidics technology.
In 2006, Yan Jing traveled to the United Kingdom for further studies after graduating from university, and subsequently pursued a Ph.D. in Biochemistry at the University of Cambridge. It was there that she was first exposed to microfluidics technology. At that time, industry research into microfluidics was just beginning, and the University of Cambridge established a dedicated microfluidics laboratory in the same year.
Microfluidics refers to systems that miniaturize laboratory experiments onto a single chip, utilizing microchannels (with dimensions ranging from tens to hundreds of micrometers) to process or manipulate minute fluid volumes (from nanoliters to picoliters). The early conceptual origins of this technology can be traced back to the 1970s, when gas chromatographs were fabricated on silicon wafers using photolithography. One of the key features of microfluidics is the unique fluidic properties exhibited at the microscale, such as laminar flow and droplet formation. Leveraging these distinctive fluidic phenomena, microfluidics enables microfabrication and micro-manipulation tasks that are difficult to achieve with conventional methods. Currently, microfluidics is regarded as having significant development potential and broad application prospects in biomedical research.
In 2018, Yan Jing and her team established Hemosmart Medical in Suzhou, a project they had been preparing for three years. After years of academic and industrial training, they began applying microfluidics to in vitro diagnostics and secured tens of millions of yuan in investment from Inno Angel Fund, Ziniu Fund, Kunshan Science and Technology Innovation Fund, and Suzhou New District Venture Capital.
The University of Cambridge established its first microfluidics laboratory as early as 2006. Yan Jing told VCBeat New Medicine that her supervisor was among the first scholars to engage in microfluidics research. Sharing the same academic lineage was Professor Shankar Balasubramanian, co-founder of Solexa. Initially, microfluidic detection remained a technology confined to the laboratory, with chips requiring photolithography for fabrication. “In the past, numerous supporting conditions were needed to produce chips one by one,” Yan Jing recalled. The inability to achieve mass production became a critical bottleneck restricting the development of microfluidics.
During this period, Yan Jing participated in multiple industry commercialization projects under the guidance of her mentor. One such project, involving a drug screening product based on microdroplet microrobots, was delivered to GSK in the United Kingdom for use. Meanwhile, inter-laboratory collaborations enabled Yan Jing to build an extensive professional network. “I am acquainted with virtually all the founders of the earliest companies specializing in microfluidics globally; they are predominantly professors who have collaborated with my mentor,” Yan Jing revealed.
Dr. Yan Jing, Founder of HEMOSMART MEDICAL
In 2013, Yan Jing, upon earning her Ph.D., joined Bain & Company. Alongside McKinsey & Company and the Boston Consulting Group (BCG), Bain is recognized as one of the “Big Three” global management consulting firms. That year, Bain recruited only four students from the University of Cambridge, and Yan Jing became the first Cambridge Ph.D. to conduct healthcare-focused research at Bain’s London office. Her role involved assisting clients with strategic planning; her clientele consisted primarily of international giants, mainly from the in vitro diagnostics (IVD) sector.
“Working during this period has given me a realization: these industry giants have been constantly seeking a breakthrough, relying on technological innovation to address the challenges of the time,” said Yan Jing. High-quality service, low cost, and high performance constitute an “impossible trinity,” and the key to breaking this deadlock lies in the incremental value brought by new technologies.
Yan Jing’s first thought turned to the microfluidics technology she had been researching for many years. Around 2010, microfluidic chips based on injection molding processes were developed, and by 2013, this technology had begun its industrialization. However, at that time, the applications of microfluidics were largely confined to areas such as drug screening and chemical engineering.
During this period, she traveled between Bain & Company and the University of Cambridge every weekend to discuss with her mentor the expansion of microfluidics technology in the field of in vitro diagnostics (IVD). She helped a long-established IVD giant embark on a new chapter of technology transfer by establishing an R&D center in the London area. “This company originally specialized in hardware; to venture into others’ domains, innovation is essential,” she stated. “The only way forward is to drive technological change and expand the market, rather than competing for limited resources.”
The University of Cambridge places strong emphasis on technology transfer. During her studies, the university offered specialized courses on academic patent applications and commercialization strategies. “These insights were introduced right from the start of our enrollment, supplemented by interactive workshops where we discussed in groups how to commercialize our patents,” said Yan Jing. Additionally, her international strategic training at Bain & Company further enhanced her understanding of the market potential and product direction for microfluidics technology.
Opening Ceremony of HEMOSMART MEDICAL’s Suzhou Base
In 2015, Yan Jing, her supervisor, and their colleagues from the same laboratory—the original team—launched a new round of industrial translation projects. However, unlike before, this project was not planned along the previous path of “technology translation followed by acquisition.” Instead, they aimed to press on with full momentum to ultimately translate the technology into commercial diagnostic kits and operate the enterprise as entrepreneurs.
“We have been continuously conducting research on microfluidics technology, and we have a clear understanding of its capabilities and potential,” said Yan Jing. Her research experience at the University of Cambridge, combined with the industry expertise she accumulated during her tenure at Bain & Company, convinced Yan Jing that the application of microfluidics in in vitro diagnostics represents the future direction.
Following the establishment of companies in the UK, several large corporations have gradually entered this industry. Among them, in vitro diagnostics giants such as bioMérieux and Roche have successively launched test kits based on microfluidics technology.
Unlike the giants’ diagnostic applications in immunology, HEMOSMART MEDICAL TECHNOLOGY LTD’s products extend into two directions: one is detection for multiple tumors, which includes a complete system of reagents, kits, and instruments that can utilize circulating tumor cell detection in peripheral blood for medication guidance, early detection, and prognosis monitoring; the other is rapid detection for infectious diseases, particularly pathogenic bacteria.
During tumor progression, a subset of tumor cells acquires the ability to detach from the basement membrane and enter the bloodstream through the tissue stroma; these cells are known as circulating tumor cells (CTCs). Liquid biopsy is a diagnostic and monitoring approach for cancer that involves detecting these CTCs or cell-free DNA derived from ruptured CTCs (ctDNA) in the blood. The latter represents a highly competitive “red ocean” market within the current next-generation sequencing (NGS) landscape.
CTC-based liquid biopsy is built upon cell capture. The number of CTCs present in peripheral blood is extremely low, with only approximately 1–10 cells per milliliter of blood; thus, sequencing can only be performed after successful CTC capture.
The first-generation CTC technology employed magnetic bead-based capture, a method originally invented by Immunicon. After completing a series of clinical trials in 2004, the company officially launched the CellSearch CTC capture system. Immunicon was acquired by Veridex, a subsidiary of Johnson & Johnson, in 2008. Although CellSearch remains the only FDA-approved CTC capture system to date, production of the device was discontinued by Johnson & Johnson in 2015 due to technical limitations.
A distinctive feature of HEMOSMART MEDICAL TECHNOLOGY LTD in the field of oncology diagnostics is its microfluidics-based cell capture technology. The company has developed a microfluidic chip with a multi-layered structure featuring tens of thousands of channels arranged in series and parallel configurations, integrating over ten thousand microchannels onto a single chip. “We have designed multiple biomarkers, enabling the simultaneous capture of various target cells or pathogens in a single run,” revealed Yan Jing. This technology completed its technical validation in 2018. Her training at the University of Cambridge and Bain & Company has made her highly sensitive to intellectual property protection; consequently, the company promptly files for global patents whenever significant achievements are made. It is reported that the company has already been granted four global patents, with an additional 21 patent applications currently under review.
Moreover, microfluidic technology can integrate multiple steps of sample testing onto a single small chip. Since microfluidic devices can be designed with multiple channels and isolated reaction units that do not interfere with each other, multiple assays can be performed in parallel on the same sample as needed, offering high-throughput capabilities. Therefore, this technology enables rapid testing with minimal sample volume while delivering highly accurate quantitative results.
In addition to pathogen testing that requires rapid results, tumor detection based on microfluidics technology also complements NGS. It not only captures cells for NGS technology but also delivers test results more quickly. After all, for most cancer patients, time is life.
“For antigen-based medication guidance, our microfluidic chip testing can provide basic, rapid recommendations for drug use,” Yan Jing added.
Initially, Hemosmart Medical envisioned its application scenario within hospital clinical laboratories. Having lived in Europe for an extended period, Yan Jing was well-versed in the healthcare systems of Germany and the United Kingdom. Upon returning to China, she further clarified the actual needs of clinical laboratories in domestic hospitals through engagements with leading Tier 3 Grade A hospitals.
It was revealed that the company’s oncology product portfolio has been preliminarily refined, with the first batch of customers already secured. However, to enter hospital clinical laboratories, the products must obtain clinical approval from the National Medical Products Administration (NMPA). Following the completion of its angel financing round, the company will commence the construction of Good Manufacturing Practice (GMP) workshops, prepare for clinical trials, and finalize the development of its pathogen detection products. “Currently, our primary focus is on the mass production of standardized products independently developed by the company, while we also provide customized services for specific clients,” said Yan Jing.
Four years after its establishment, the team at HEMOSMART MEDICAL TECHNOLOGY LTD has grown from an initial four members to 25, all of whom hail from top-tier universities and research institutions both in China and abroad. Previously, the team’s work focused primarily on R&D. Yan Jing revealed that the company would begin pilot production of its products in 2019: “This marks the beginning of industrialization.”
In December 2018, HEMOSMART MEDICAL TECHNOLOGY LTD completed an angel financing round worth tens of millions of RMB. The lead investor was Inno Angel Fund, with other participating investors including Kunshan Science and Technology Innovation Fund, Suzhou Hi-Tech Venture Capital, and Ziniu Fund, co-founded by Zhang Quanling.
Surprisingly, from its establishment in the UK to its operational launch in China, this marked Hemosmart Medical’s first fundraising round in three years. “The government provided substantial support,” explained Yan Jing. A native of Jiangsu Province, Yan Jing returned with Hemosmart just as the province launched its “Phoenix Nest” initiative to attract overseas talent back home. Leveraging government support, special funds from several national research projects, and personal savings from herself and her team, Yan Jing led the team through early-stage product development and patent filings. It was only when the product moved toward commercialization—requiring the construction of GMP-compliant manufacturing facilities and the conduct of clinical trials—that Hemosmart Medical initiated its fundraising process. Furthermore, building on its existing team, the company has begun establishing a sales force, aiming to set up a robust service system prior to large-scale product promotion.
Yan Jing is also somewhat selective in her choice of investment institutions. For her, having capital and a valuation is not enough; she seeks partners who share common values. Through introductions from friends, Yan Jing met Zhang Quanling of Ziniu Fund and Li Zhu, Founding Partner of Inno Angel Fund, and they had highly productive discussions. Although the valuation was affected to some extent by the “capital winter,” both parties quickly reached a consensus. “Li Zhu comes from the internet industry and has extensive business experience, which is something we need to learn from. Zhang Quanling of Ziniu Fund is also an investor who deeply understands the balance between technology and commercialization.”
It was revealed that the funds raised in this round will be primarily allocated to GMP-compliant manufacturing facilities, clinical trials, and product registration. The company submitted its application in the first half of 2019 and is currently in the regulatory review stage. “At this stage, we are mainly targeting research projects at hospitals, research enterprises, and academic institutions, aiming to foster familiarity with our products through diagnostic testing services,” she explained.
