Wuse Technology Files for IPO Following RMB Hundreds of Millions Series A Funding to Build China's Largest Third-Party Chemotherapy Service Network

Image source: Wuse Technology

In June 2018, VCBeat (WeChat ID: vcbeat) learned that Wuse Technology announced the completion of its Series A financing round, amounting to hundreds of millions of RMB and led by China Merchants Capital.

It is reported that Wuse Technology was established as a joint venture by Sinopharm Group and 360 Group in 2015. The company is currently primarily engaged in third-party services related to tumor chemotherapy.

There are approximately 7.5 million cancer patients currently in China. Based on an annual per capita expenditure of RMB 70,000 and a treatment penetration rate of 60%, the market size of China’s oncology medical services is estimated at RMB 320 billion. Among the three major cancer treatment modalities, pharmacological therapy represents the largest market, with a scale of RMB 150 billion. In addition to anticancer drugs, immunomodulators and other adjunctive medications (such as antibiotics, antiemetics, and nutritional support agents) account for 50% of the pharmaceutical market share.

Public tertiary hospitals undertake over 90% of cancer treatment tasks, operating beyond capacity. With policy constraints on the expansion of public hospitals, there is a significant supply-demand gap in cancer care.

Wuse Technology has responded to market demand and benefited from healthcare reform policies, including controls on the drug-to-revenue ratio, zero-markup pricing for pharmaceuticals, tiered diagnosis and treatment systems, and the development of third-party medical institutions. Leveraging the robust industrial resources of Sinopharm Group, the company rapidly established a presence in several top-tier Grade 3A hospitals across China, thereby securing precise access to the oncology treatment market.

This round of financing for Wuse Technology will be primarily used to expand its network of third-party chemotherapy centers across China. The participation of China Merchants Capital not only further optimizes Wuse Technology’s shareholder structure but also brings resources in areas such as health park operations, insurance, and capital.

According to VCBeat, Beijing Wuse Technology Co., Ltd. was jointly established by Qihoo 360 and Sinopharm Group. The company is dedicated to providing high-quality personalized services to cancer patients, helping them achieve better quality of life and extended survival. It is the first joint venture in China co-founded by a state-owned enterprise and a major internet company. Compared with its peers, the joint venture holds significant advantages in capital support, supply chain resources, and customer base.

Leveraging their respective strengths, Sinopharm Group will provide extensive channel resources and a broad portfolio of pharmaceutical products to comprehensively support the development of oncology rehabilitation projects. Meanwhile, 360 will fully assist in building the health platform for cancer patients, ensuring its stable operation and the security of patient information.

The social value of Wuse Technology encompasses three aspects:

Establish an in-hospital chemotherapy center, co-develop an educational service platform for oncology patients, enhance the standardization of in-hospital chemotherapy treatment, and increase hospital revenue.

The hospital provides treatment plans, enhances medical expertise through the platform, and increases physicians’ transparent income.

Optimize services related to the construction, operation, and management of chemotherapy centers to deliver more convenient and comprehensive integrated oncology care.

As a first-tier subsidiary of China Merchants Group, a central state-owned enterprise headquartered in Hong Kong, China Merchants Capital specializes in alternative investments and asset management. Serving as the Group’s platform for managing and developing its investment operations, it actively explores market opportunities to foster emerging industries and enhance capital vitality, while also integrating internal resources to promote the synergy between finance and industrial sectors. By the end of 2017, China Merchants Capital managed total assets exceeding RMB 270 billion.