VivaChek Biotech Targets Global POCT Leadership with Smart Glucose Monitoring Solutions

As the largest segment of point-of-care testing (POCT), blood glucose monitoring is undoubtedly a highly lucrative market, with the size of the Chinese market alone exceeding RMB 5 billion. While foreign brands such as Abbott, Johnson & Johnson, and Roche are flocking to China to capture their share of this prize, one domestic brand has taken an unconventional path by targeting the broader international market.

Within just two years of its establishment, the company successfully obtained multiple certifications for market access in Europe and the United States, including FDA approval, CE marking, ISO 13485, and ISO 15197:2013. Its products are exported to nearly 50 countries worldwide. Notably, its blood glucose monitoring products have been included in the UK National Health Service (NHS) procurement catalog, allowing for unrestricted distribution within the NHS system.

Yang Qinggang, General Manager of Weice Biotechnology (left); Yang Rong, Chairman (center); and Wang Chengchao, Vice President (right)

This company, which has found greater acclaim abroad than at home, isHangzhou Weice Biotechnology Co., Ltd.(hereinafter referred to as “MicroTest Biotech”), founded in August 2013 by a team led by Yang Qinggang. According to VCBeat, Microcyte currently has an annual production capacity of 2 million blood glucose meters and 300 million test strips, with its products exported to nearly 50 countries, including the United Kingdom, Germany, Italy, the Netherlands, and Australia, within two years.

According to a widely circulated online ranking of Chinese IVD equipment exports in May this year, customs data show that among Chinese POCT exporters in the first quarter of 2017, Vazyme Biotech ranked third, trailing the second-place company by only a narrow margin. In the first half of 2017, Vazyme Biotech’s test strip sales surged dramatically, far exceeding the levels recorded during the same period in 2016.

The core reason why Microsight Bio has been able to quickly establish a firm foothold in the high-end markets of Europe and America lies in the forward-looking positioning and strategic layout of its products. According to Wang Chengchao, co-founder of the company, Microsight Bio prioritized the demands of the European and American markets from the very outset of product development, setting many technical specifications higher than those of competitors’ products in these regions. Meanwhile, the company successfully anticipated changes in industry regulations, thereby gaining a first-mover advantage in capturing market share.

“In Europe, it typically takes just two years for a regulation to go from draft to implementation. We leveraged this window to focus exclusively on product development. Once the European regulations officially take effect, customers will begin seeking products that comply with the new requirements. By that time, our products will already be ready, enabling us to rapidly enter the European market,” said Wang Chengchao.

Microce Biotech Blood Glucose Meter – Product Image

Furthermore, aligning with the trends of the times has been key to Microcyte’s success. With the rise of big data and the “Internet Plus” concept, along with the widespread adoption of smart devices, the trend toward intelligent blood glucose meters has gradually emerged. Capitalizing on this trend, Microcyte launched a Bluetooth-enabled blood glucose meter that allows users to directly connect via Bluetooth after measurement and upload data to the HaoTang™ Blood Glucose Management App or the HaoTang™ WeChat Service Account. The synchronized data storage enables patients to access their historical records during medical consultations, significantly enhancing physicians’ diagnostic and treatment efficiency.

In addition to smart blood glucose meters, Microceuticals plans to launch the Microce Cloud™ In-Hospital Management System for hospital applications, designed to work in conjunction with Microce Bluetooth blood glucose meters. After testing with the blood glucose meter, data is automatically transmitted to the hospital’s management system, eliminating the need for nurses to manually enter data and reducing errors associated with manual entry. Meanwhile, physicians can intuitively view patients’ data records and analytics through the system, enabling timely issuance of medical orders. The deployment of the Microce Cloud™ platform in hospitals enhances the efficiency and effectiveness of patient blood glucose management.

VCBeat has learned that MicroStrategy Bio will launch a blood glucose meter equipped with an IoT SIM card by the end of this year. After the device completes a blood glucose measurement, the system will automatically upload the data to the cloud or send it to the patient’s family members’ mobile phones, allowing physicians to review the patient’s data at any time. If abnormal results are detected, customer service representatives will proactively provide consultation services to patients, offering guidance on medication or recommending hospital observation as appropriate. If a patient fails to take measurements for several consecutive days, customer service will call to inquire about the reason and remind the patient to measure regularly. This provides a comprehensive solution for the out-of-hospital management of diabetes patients.

After years of overseas expansion, Wang Chengchao stated that Wecare Bio’s primary markets will remain abroad for the next three years. However, given the large base and rapid growth of the domestic market, along with a significant rise in health awareness and spending among Chinese consumers in recent years, there is substantial room for import substitution, especially as foreign brands currently hold over 80% of the clinical market share. Therefore, the company will also devote considerable efforts to developing its domestic clinical channels in the future.

Furthermore, as the construction of medical consortia continues to advance, hospitals are seeking to integrate in-hospital and out-of-hospital care. This enables physicians to monitor data collected by patients using devices at home in real time from within the hospital. Against this policy backdrop, market demand for Bluetooth-enabled and SIM card-equipped blood glucose meters has increased. Therefore, if Microcyte Biotech can rapidly establish its brand presence in hospitals, acceptance among individual consumers will follow swiftly.

Regarding future development strategy, Ms. Yang Rong, Co-founder of Vazyme Biotech, stated, “In the future, Vazyme Biotech’s product portfolio will expand from a single blood glucose meter to other areas of point-of-care testing (POCT), transforming us into a diversified POCT manufacturer serving the global market and establishing ourselves as a true leader in the POCT industry.”

First, with the decentralization of primary healthcare systems, the POCT market holds immense potential. Second, Microcyte has accumulated certain technological capabilities, and its team possesses technical advantages in reagents. Therefore, Microcyte Biotech will enter the market through its quantitative immunofluorescence platform, actively expanding into areas such as infectious diseases, cardiology, and nephrology, with a significant breakthrough expected next year.

It is reported that Microce Bio’s strategic goal is to achieve annual sales of RMB 800–1 billion within five years and become the leading domestic brand in the POCT sector.

On July 18, 2016, Vcanbio signed a “Win-Win Future” strategic cooperation agreement with Shenzhen GTJA Investment Group, under which both parties would engage in in-depth collaboration on new technologies and new products in the field of POCT. GTJA will provide financial support to Vcanbio, while Vcanbio will intensify efforts to expand its blood glucose monitoring business and increase its coverage in the global market.

Yang Rong recalled, “Given Weice Biology’s substantial early-stage investments in product development and technology, we required financial support for subsequent market promotion. At that juncture, we engaged with several investment institutions. GTJA Capital proved to be pragmatic and possessed deep expertise in the healthcare industry, enabling us to swiftly reach a cooperation intent with them.”

“Later, Mr. Cai (Cai Dajian, founder of GTJA Capital) visited our company several times. From a strategic perspective, Mr. Cai encouraged us to accelerate our pace and expand into other areas of POCT. His guidance was highly significant for us. With the support from GTJA Capital, we made substantial investments in POCT R&D and carried out extensive work to strengthen our POCT portfolio,” said Yang Rong with a satisfied smile.

It is reported that the 4th GTJA Presidents’ Seminar will be held in September. Yang Rong expressed her great anticipation for the event, stating, “MicroCyte’s current strategy is clear; the most urgent priority is to transform our corporate management philosophy and improve our management systems. The portfolio companies of GTJA are at varying stages of development, and we look forward to engaging in more communication, discussion, and learning with other enterprises.”