Kailitech and Ascensia Diabetes Care Announce Global Strategic Partnership to Co-Develop Next-Generation Continuous Glucose Monitoring System

VCBeat (WeChat ID: vcbeat) has learned that Zhejiang KaiLite Medical Instrument Co., Ltd. announced today the establishment of a global strategic partnership with Ascensia Diabetes Care.

KaiLite Medical has reached an agreement with Ascensia, designating Ascensia as the exclusive distributor for KaiLite Medical in 13 national markets where it has not yet entered. Additionally, Ascensia holds right of first refusal for distribution rights in other countries where KaiLite currently has no presence. As part of the agreement, Ascensia will promote and sell KaiLite Medical’s CT-100B continuous glucose monitoring (CGM) system, which has already obtained CE certification, in these regions, with commercial launch planned for mid-2019.

Ascensia Diabetes Care is a global company specializing in diabetes products, dedicated to serving people with diabetes. The company was established in 2016 through the sale of Bayer’s Diabetes Care division to Panasonic Healthcare Holdings Co., Ltd.

As the second part of their strategic collaboration, KaiLite Medical and Ascensia have also entered into a joint development agreement to co-develop next-generation continuous glucose monitoring (CGM) products based on KaiLite Medical’s sensor technology. The agreement involves integrating both companies’ proprietary technologies to develop and manufacture a new generation of products with enhanced functionality and performance, thereby more effectively meeting the market needs of patients with diabetes.

Dr. Zhang Yanan, President and Chief Scientist of KaiLite Medical, stated: “The collaboration between the two companies marks a significant milestone, with the goal of expanding into global markets and developing our next-generation CGM products. By combining Ascensia’s global capabilities in marketing, regulatory affairs, quality systems, design, and testing with KaiLite’s sensor expertise, we will be able to jointly provide high-quality, price-competitive products for the diabetes care sector.”

Michael Kloss, CEO of Ascensia Diabetes Care, stated: “We are committed to expanding our business beyond blood glucose monitoring, as we believe continuous glucose monitoring is a key component of diabetes care. This partnership enables us to introduce an approved CGM product to selected markets in 2019, while simultaneously developing new CGM systems based on KaiLite Medical’s existing technologies to address some of the unmet needs of patients with diabetes.”

Michael further stated, “The agreement with KaiLite Medical is a key first step in building Ascensia into a world-class CGM company. Our goal is to establish a pipeline of cutting-edge CGM products by combining strategic partnerships with our own CGM development initiatives, thereby delivering solutions that are more optimized than the continuous monitoring products currently used by patients with diabetes.”

It is understood that KaiLite’s next-generation CGM system will significantly enhance product performance and stability. Additionally, the company’s innovations in manufacturing processes can break through bottlenecks in mass production, truly delivering real-time continuous glucose monitoring products with high cost-effectiveness to users.

According to the CGM market forecast report released by Research and Markets, the global CGMS market was valued at $878 million in 2016 and is projected to reach $1.3672 billion by 2025, representing a compound annual growth rate (CAGR) of 36.7%.

However, this market is currently dominated by multinational giants such as Medtronic, Abbott, and Dexcom. In terms of market share, North America remains the leading region; nevertheless, the rising prevalence of diabetes in India and China is creating significant opportunities for continuous glucose monitoring (CGM) systems in the Asia-Pacific region. Startups are also catching up with and even surpassing these industry leaders.

Zhejiang KaiLite Medical Instrument Co., Ltd. was established in 2010 as a joint venture between an international senior technical team led by Dr. Yanan Zhang, a Chinese-American scientist, and Huzhou Materials, Chemical Construction, Civil Explosives Co., Ltd. In 2014, to accelerate its development, the company entered into strategic cooperation agreements with three venture capital firms: Legend Capital, Kailian Medical, and Hong Kong-based Lenomed. In 2017, it introduced strategic investors including Vensure Capital, Tasly Capital, and Tonghua Dongbao, all renowned institutions or listed companies, thereby forging strong alliances. Zhejiang KaiLite Medical is dedicated to the research and development, production, and sales of portable or wearable medical diagnostic devices centered on biosensor technology.

Dr. Yanan Zhang, the founder, previously served as a Drug Analysis Scientist at Oread Inc. in the United States, Chief Sensor Scientist at Medtronic, and R&D Director at MicroCHIPS. He led and participated in the development of the glucose sensor for the world’s first artificial pancreas, as well as the first continuous glucose monitoring (CGM) product, CGMS Gold.

Ascensia’s products are sold in more than 125 countries worldwide, with approximately 1,700 employees and operations across 31 countries. With a long-standing heritage in diabetes care, Ascensia will leverage its internal expertise and capabilities under this collaborative development agreement to develop and commercialize diabetes technologies. The partnership aims to better apply both parties’ specialized expertise to the next generation of continuous glucose monitoring (CGM) systems.

Through this strategic partnership with Ascensia Diabetes Care, KaiLite Medical will accelerate the overseas deployment of its continuous glucose monitoring (CGM) products and expand its international presence. Internally, the company will enhance planning, integration, and synergy, while upgrading products and raising product standards. Leveraging KaiLite Medical’s expertise in sensor design and manufacturing processes, the company will expedite automation upgrades to meet large-scale production demands, thereby providing cost-effective products to a broad patient population. These efforts align with the company’s mission: “To provide comprehensive, effective, and affordable diabetes management solutions and become a respected leader in technological innovation within the industry.”