Fangxin Medical Secures Over RMB 10 Million Strategic Financing to Accelerate Development of Integrated Smart Pathology Solutions

VCBeat has learned at the earliest opportunity,Guangzhou Fangxin Medical Technology Co., Ltd. (hereinafter referred to as“Fangxin Medical”) CompletedBy Guangzhou LBP Medicine Science & Technology Co., Ltd. (Stock Code:688393) strategic financing of over RMB 10 million through equity investment.

Guangzhou Fangxin Medical Technology Co., Ltd. was established in 2016 as a high-tech enterprise specializing in the smart healthcare industry, dedicated to providing innovative, secure, and advanced products and services to customers in the fields of healthcare informatization, medical artificial intelligence, and medical big data.

Following the completion of this round of strategic investment, LBP will open its digital intelligence pathology platform and resources to Fangxin Medical. Building on this foundation, the two parties will collaborate to develop smart pathology products with greater innovative value. Meanwhile, leveraging their close partnership, LBP’s mature sales system will empower Fangxin Medical, enabling channel sharing.

In 2016, Go world champion Lee Sedol lost 1-4 to Google's AlphaGo.

This “man-versus-machine showdown” was not only a milestone event in the history of artificial intelligence, but also reshaped humanity’s understanding of AI. At such a historic juncture, people should no longer fixate on the outcome of the match, but rather consider artificial intelligence from a broader, more macroscopic perspective.

Wang Jianguo, founder of Fangxin Medical, is a serial entrepreneur., he has founded multiple companies as a primary or co-founder and possesses nearly two decades of experience in the healthcare industry. After witnessing the “Man-Machine War,” Wang Jiancheng keenly recognized it as a historic opportunity: deploying artificial intelligence in the medical field would not only drive industry development but also usher in a new era.

Therefore, with the ““Making healthcare services more efficient and precise”Driven by their dreams and passion, the founding team established Fangxin in the aftermath of this century-defining showdown.

At its inception, Guangzhou Fangxin Medical Technology Co., Ltd. pioneered the concept of a “Pathology Full-Process Information System” and successfully launched the first-generation product of this system the following year. Today, the Pathology Full-Process Information System has gained widespread consensus within the pathology industry and has become a foundational solution for healthcare institutions undertaking pathology informatization initiatives.

In 2020, Fangxin upgraded its full-process pathology information management system once again and collaborated with dozens of industry experts to create the industry’s first embedded pathology knowledge base within an information system.

At the end of 2021, Fangxin emerged victorious from multiple rounds of competition, successfully winning the bid for China’s first fully digital pathology department construction project at Zhongshan People’s Hospital, which was smoothly implemented and became operational in 2022. This project marked the first realization of the pathology department’s “Fully Digitalized Operations Across All Modules, Full-Scale Volume, End-to-End Processes, and the Entire Ecosystem”。

Over more than a year of practical operation, the product’s advantages in process reengineering and management enhancement have gradually become evident. Pathological diagnosis has comprehensively shifted from microscopic slide review to digital pathology, with departmental slide-reading conferences fully digitized. The level of pathological quality control has been further improved, while remote slide review has overcome temporal and spatial constraints in diagnosis and treatment. The practical application of pathology AI has enhanced physicians’ diagnostic efficiency. Moreover, an increasing number of lower-tier hospitals are seeking pathological support from Zhongshan People’s Hospital, significantly strengthening regional collaboration in pathology.

According to reports, Fangxin has served over 200 hospitals, including many large Grade A tertiary hospitals such as Peking University First Hospital, Hunan Provincial People's Hospital, Guangxi Zhuang Autonomous Region People's Hospital, The Affiliated Cancer Hospital of Guangzhou Medical University, and Shandong Cancer Hospital.

Through years of continuous R&D, iterative improvements, and personalized services, Fangxin has accumulated valuable practical experience and a wealth of typical case studies in achieving full-process informatization, department-wide digitalization, and ecosystem-wide smart solutions in the field of pathology.

Building on the success of establishing China’s first fully digital pathology department across the entire industry and the continuous growth in its user base, Fangxin began to focus on developing comprehensive smart pathology solutions in 2023.

Focusing on an Open and Compatible Pathology Ecosystem.Fangxin’s core team believes that China’s healthcare and wellness market has reached a scale of RMB 13 trillion, while the global pathology industry has also attained a market size in the hundreds of billions. The market potential for intelligent pathology is equally vast, with numerous unexplored areas remaining in the development of various pathology AI products and disease-specific databases, offering ample room for the aspirations of countless entrepreneurs.

Throughout the upgrade journey from informatization to digitalization and then to intelligence, Fangxin has accumulated extensive experience and a strong industry reputation, along with practical channels for project monetization. Looking ahead to the vast potential of intelligent pathology, pioneers should establish an open and compatible pathology ecosystem from the outset.

Therefore, Fangxin’s smart pathology department construction solution broadly supports digital slide scanners and AI-based pathological diagnostic systems from various manufacturers. It can process digital slides in diverse formats, ensure compatibility and connectivity with mainstream devices, and assist pathology institutions at different stages of development in continuously upgrading toward digital and intelligent pathology.

From the world’s first AI-powered pathology product approved by the U.S. FDA in 2021 to the issuance of China’s first Class III medical device certificate for AI-based pathology by the NMPA in early 2023, artificial intelligence is unlocking new opportunities in the billion-dollar pathology market.

Against this backdrop, Fangxin’s team of scientists has recently welcomed an expert specializing in the R&D of pathology AI technologies—Professor Yu Jingang from South China University of Technology has officially assumed the role of Chief Scientist at Fangxin.

In 2016, the same year Guangzhou Fangxin Medical Technology Co., Ltd. was established, Yu Jingang, who was conducting postdoctoral research at the University of Nebraska–Lincoln in the United States, joined South China University of Technology as an associate professor through an overseas talent introduction program. Professor Yu’s team has long focused on collaborating with pathology departments of large hospitals, striving to enhance the clinical utility of AI in pathology and facilitate the real-world deployment of AI systems in specific application scenarios.

The addition of Professor Yu to the team will accelerate the R&D and engineering progress of Fangxin’s smart pathology products. Currently, Fangxin and Professor Yu’s team are developing AI-assisted diagnostic technologies for breast cancer and head and neck tumors, with relatively mature products expected to be launched and integrated into real-world application scenarios in the first half of 2024.

At the end of the interview, Wang Jianguo said:“After multiple entrepreneurial ventures, my most profound realization is that ‘products and services are the foundation of an enterprise.’ Therefore, Fangxin will continue to build an open pathology ecosystem, with”ImplementationSustainable smart pathology products empower the vision of “making healthcare services more efficient and precise,” while mutually driving advancements in informatization, digitalization, and intelligence within the pathology industry.

Guangzhou LBP Medicine Science & Technology Co., Ltd. (LBP), established in 2005, is the first listed company in China’s pathological diagnosis sector. Integrating R&D, production, marketing, services, and education, LBP has built four core business segments: cancer screening, cancer diagnosis, digital-intelligent pathology, and pathology services, serving over 2,200 medical institutions across China.Specializing in cancer screening and precision diagnosis, LBP focuses on advancing the “four modernizations” of hospital pathology departments—automation, standardization, digitization, and intelligentization. The company has independently developed supporting equipment, reagents, and consumables for various technical platforms, including routine pathology, liquid-based cytology (LBP), polymerase chain reaction (PCR), immunohistochemistry (IHC), fluorescence in situ hybridization (FISH), and digital pathology. With more than 700 registered or filed products, LBP is one of the enterprises with the most comprehensive and diverse pathology product lines in China.Actively responding to national policy initiatives, LBP leverages its deep expertise in pathological diagnosis to address critical industry challenges, such as the shortage of pathology professionals, weak diagnostic capabilities in primary care hospitals, and the high medical costs associated with major diseases. Adopting a dual-drive model of “products + services,” and building on solid technological foundations and continuous product innovation, LBP has expanded into three strategic business areas: construction of digital and intelligent pathology departments, enhancement of pathology department capabilities, and companion diagnostics for pharmaceutical companies. Through these efforts, LBP is practically driving the high-quality development of the pathology industry.