Baiyang Intelligent Technology Files IPO Prospectus: Building a Comprehensive AI-Driven Smart Healthcare System Spanning Diagnosis and Treatment

The Industrial Revolution spurred a rise in productivity, but it later became evident that the underlying reality of industrialization was severe environmental pollution, ecological degradation, and a host of social problems.

Since the advent of the Internet, while it has facilitated people’s lives and reshaped the structure of human society, it has gradually become apparent that the deluge of information compels individuals to constantly engage with their smartphones and computers. This has overloaded the human brain’s capacity to process information and hindered interpersonal communication. Furthermore, issues such as data security and the spread of negative content have adversely affected people’s lives and health.

In the healthcare industry, with the passage of time and the advancement of informatization, medical information and academic literature are becoming increasingly abundant. Physicians are required to keep abreast of both growing patient data and the latest medical advancements. Relying solely on self-directed learning by the human brain can no longer meet the escalating demand for knowledge.

Therefore, it is an inevitable trend to use artificial intelligence to assist physicians in learning and clinical diagnosis and treatment.

The former director of the U.S. National Cancer Institute announced a study in which 20 cases were randomly selected for gene sequencing. It took a panel of experts one week to interpret the sequencing results, whereas another group of experts input the data into Watson Genomics and efficiently and accurately interpreted all the data in just one hour.

Notably, Watson for Genomics identified all the abnormalities detected by experts at U.S. National Cancer Institute-designated cancer centers; additionally, in approximately one-third of patients, it uncovered gene variants with therapeutic implications that had been overlooked by those experts.

Fu Gang stated that animal evolution relies on changes in physical structure, such as shortening tails and lengthening legs. In contrast, human evolution depends on the advancement of tools. The sudden rise of artificial intelligence in recent years is due to the massive volume of information and noise released during the internet’s “post-truth era,” which has surpassed the threshold of human capacity. Without the evolution of tools, humanity would collapse under the weight of the internet.

The rise of the medical artificial intelligence industry has spurred its rapid development, with multiple startups securing hundreds of millions of yuan in financing in the first quarter of 2018 alone. Amidst this swift growth, the industry faces a critical challenge: due to the lack of certification, most domestic products cannot be deployed on a large scale.

As a reference tool for personalized, standardized treatment of newly diagnosed cancer patients, Watson for Oncology represents the first application-level achievement of artificial intelligence in the global healthcare sector. It currently covers standardized treatment protocols for 13 types of cancer, including lung cancer, breast cancer, rectal cancer, colon cancer, gastric cancer, and cervical cancer.

Focusing solely on the Watson for Oncology business, as of January 2018, it had been deployed in more than 150 hospitals across five continents and served nearly 50,000 patients.

On March 28, 2017, Baheal Intelligent Technology, a subsidiary of Baheal Medical Group, signed a strategic cooperation agreement with IBM in Beijing, becoming IBM Watson’s strategic partner for the Health region in China. The company secured the exclusive three-year general distribution rights for Watson for Oncology (Watson Oncology Solution) in the Chinese market, as well as priority negotiation rights for certain future new products and collaborative R&D rights for newly launched products in the Chinese market.

In June 2017, Baheal Intelligent Technology became the exclusive distributor of Watson for Genomics (Watson Genomic Solutions) in China.

In the year since Watson for Oncology entered China, it has been deployed in 22 provinces, 39 cities, and 66 hospitals and medical institutions, serving over 10,000 patients. The number of patients served this year is projected to reach approximately 40,000–50,000.

In view of such rapid implementation, both parties agreed to extend the strategic cooperation agreement on the exclusive general distribution rights for Watson for Oncology, which took effect on March 28, 2017, from three years to eight years.

Fu Gang stated that Baheal Intelligent Technology is not only promoting Watson Health products but also localizing them in accordance with China’s national conditions, thereby adapting the products to the usage habits of Chinese patients and physicians.

Watson’s products have been rapidly deployed and applied globally, primarily due to Watson’s advantages in algorithms, big data, and applications, which have enabled it to become an application-level product.。

An algorithm is essentially a logical relationship. Common examples include machine learning, cognitive computing, and artificial neural networks. These technological platforms are now relatively mature, and many algorithms are open-source. For instance, Google has open-sourced its algorithms, and IBM has developed its own. An algorithm can be likened to a child: each algorithm created is like a child with its own “brain.” However, over time, these “children” become different from one another. Why? Because they receive different education and are exposed to different learning content.

The same applies to artificial intelligence: differences in data and algorithmic architecture lead to divergent developmental trajectories.

Researchers train this algorithm with different datasets, yielding varying capabilities. Furthermore, data quality varies significantly; a substantial amount of erroneous data can severely compromise training outcomes.Therefore, data cleaning and labeling are both critically important and highly challenging.

For instance, Watson was trained at MSKCC (Memorial Sloan Kettering Cancer Center) for four years. The data used during this four-year training period were meticulously labeled by MSKCC’s expert team for each tumor case. This was a massive undertaking; for example, breast cancer alone involved 190 labels. Experts needed to carefully design these labels and their corresponding weights to provide an objective and accurate description of the disease, a process known as medical data processing. This process requires highly specialized medical knowledge, which is why many startups and internet companies fail to develop application-level artificial intelligence products—they lack a deep understanding of healthcare.

AI products emerging from laboratories are akin to graduates stepping out of universities, whether they hail from Yale or Peking University. Their subsequent real-world experiences will also shape their individual development.The same applies to AI-powered products. Issues inherent to the product may emerge during clinical application, necessitating continuous refinement by a team like Baheal Medical’s, which possesses expertise in both healthcare and IT, to enhance the product’s maturity over time.。

Baheal has been deeply rooted in the healthcare industry for many years. Its subsidiary, Baheal Intelligent Technology, is a company dedicated to tech-driven healthcare. Therefore, Baheal possesses the capability to execute this initiative effectively, and facts have proven that it has indeed succeeded.

In addition to the collaboration with Watson Health, on November 17, 2017, Philips (China) Investment Co., Ltd. and Baiyang Intelligent Technology signed a partnership agreement at Philips’ Greater China headquarters. Both parties will leverage their respective technological and resource advantages to explore innovative business models for AI-based precision diagnosis and treatment solutions, starting from the field of oncology. This initiative aims to provide decision support for physicians and deliver personalized diagnostic and therapeutic services for patients.

On August 14, Baheal Medical Group and Oracle jointly announced that Baheal Intelligent Technology, a subsidiary of Baheal Medical, has partnered with Oracle Marketing Cloud to create “Baheal Mingjing Marketing Cloud,” a marketing management platform within the Baheal ecosystem. This initiative further enhances the internet application ecosystem and strengthens Baheal’s capabilities in precision pharmaceutical marketing.

In addition, Baiyang Intelligent Technology has partnered with renowned companies such as Berry Genomics and Vcanbio. To enable patients to benefit from more systematic AI-driven healthcare solutions, Baiyang Intelligent Technology has integrated resources from its partners and launched the “BSmartD” Smart Physician Cloud Platform. The platform features an oncology clinical decision support system, intelligent imaging diagnosis, and radiotherapy solutions, thereby deepening the application and implementation of artificial intelligence in the medical field.

Baheal aims to establish BSmartD as a gateway to medical artificial intelligence, integrating truly practical AI solutions on the platform. Excellent AI products from various startups and leading companies are consolidated on BSmartD to provide one-stop solutions.

Fu Gang stated that with the increasing number of application cases, the accumulation of labeled data, and the development of artificial intelligence technology,Baheal will ultimately develop AI products with independent intellectual property rights at a faster pace.

The promotion and development of smart healthcare in China require substantial funding and are fraught with uncertainties; however, Baheal Medical is prepared for long-term investment to solidify its smart healthcare initiatives, staying true to its original aspiration during the negotiations with IBM—“Spending tens of millions of dollars is worthwhile if even one Chinese patient is saved by Watson for Oncology.。”