- Application Scenario Solutions Open Up Broad New Prospects in Assisted Reproduction
Suzhou Basecare Medical Corporation Limited (Basecare Medicalor the Company, together with its subsidiaries, the Group, HKG: 2170), an innovative platform of genetic testing solutions for assisted reproduction in China, officially announced the unaudited consolidated interim results for the six months ended June 30, 2022 (the Reporting Period).
During the Reporting Period, the Group recorded revenue of RMB68.6 million, a year-on-year increase of 36.7% compared to H1 2021. This increase was primarily driven by the revenue related to PGT laboratory increased by 53.4% from RMB26.6 million to RMB40.8 million, and the revenue increased from nil to RMB354,000 related to the male-focused laboratory, mainly contributable to the sales of the flow cytometer. The gross profit margin was outstanding during the Reporting Period. The gross profit of the Group increased by 36.0% to RMB30.2 million for the six months ended June 30, 2022, with a gross profit margin of 67.9% from PGT-A. Basecare Medical has transformed from a single product company to a comprehensive scenario solutions provider in the assisted reproduction industry, providing multi-scenario solutions including PGT laboratory-related solutions, male-focused laboratory-related solutions, and cryopreservation room-related solutions. Through a parallel business model consisting of both R&D and marketing, Basecare Medical has built a closed-loop business chain based on actual clinical needs, providing custom-made scenario solutions for customers, resulting in better customer satisfaction.
Focus on technological innovation to satisfy the evolving needs of the assisted reproductive market
By adhering to the “well-crafted product” concept, Basecare Medical’s R&D expenses increased significantly by 99.5% year-on-year to RMB45.5 million during the Reporting Period. Basecare Medical has established a complete series of testing kits in the pipeline of genetic testing kits, which is based on next-generation sequencing (NGS) technology. Meanwhile, the PGT-A kit from Basecare Medical is China’s first third-generation IVF genetic testing kit approved by the National Medical Products Administration (NMPA). The sales revenue of PGT-A kits was RMB16.4 million, with a gross profit margin of 67.9%. Meanwhile, the other two PGT products, PGT-M and PGT-SR kits are also under development. The PGT-M kit is the first and only product of its kind in China that has completed the registration test, and the PGT-SR kit is the world’s first original technology to achieve effective testing of chromosomal balanced translocations through the high-throughput sequencing platform, which obtained the national invention patent technology and may become the first standardized commercial product in this series of products in China with the potential for mass clinical application. After the PGT-M and PGT-SR kits are approved for registration by the NMPA, respectively, Basecare Medical expects to further consolidate its dominant position in the third-generation IVF genetic test kit market in China, well ahead of the Company’s competitors in the potential competition.
Beyond test kits, Basecare Medical has developed a number of innovative devices and instruments that can improve workflow in molecular genetic laboratories using its kits, as well as the industrial chain layout of embryo cryopreservation equipment, and has provided intelligent and automated integrated solutions for clinical trials to improve the Company’s competitiveness.
R&D and marketing develop synergistically, the commercialization process shows a steady upward trend
Although a significant portion of products was directly sold to hospitals and testing institutions, Basecare Medical also sold testing kits to distributors, who in turn sold the Company’s products to hospitals. With an outstanding marketing team, Basecare Medical provides services to key customers such as third-generation IVF licensed hospitals and testing institutions, which are a major component of the Company’s customers. The Company’s marketing team is also responsible for promoting products to hospitals through academic marketing activities and interactions with KOLs and other industry professionals. At present, Basecare Medical has collaborated with over 200 medical institutions across the PRC, including 60 leading reproductive centers.
With the first NMPA-approved PGT kit in China, Basecare Medical enjoys first-mover advantages in building and solidifying its sales channels and customer base. Basecare Medical plans to focus its commercialization strategy on key hospitals. The Company will increase the coverage and penetration of hospitals licensed to conduct PGT and develop stronger relationships with them to enhance customer stickiness and lay the foundation to offer other products to them in the future. Moreover, Basecare Medical plans to expand the share of wallet in these hospitals by offering comprehensive solutions, as well as offering new products for meeting other medical needs in these institutions.
Occupy the full reproductive cycle and be a leading global medical technology company
To accomplish the vision of becoming a leading global medical technology company, Basecare Medical will continue to capture and solidify PGT-A’s sales channels and maintain the established customer relationships while accelerating the clinical registration process of PGT-M and PGT-SR kits, to rapidly establish a comprehensive product pipeline of the third-generation assisted reproduction to occupy the full reproductive cycle. Regarding the instrument pipeline, Basecare Medical intends to develop automated and intelligent hardware to upgrade the industry infrastructure and maintain technological leadership by leveraging the advancements of global leaders.
It is expected that a peak in the approval and delivery of the Company’s products and pipeline will be achieved in the coming two to three years. Basecare Medical will satisfy the evolving needs of the assisted reproductive market, further develop scenario solutions in assisted reproduction to better serve the infertile and eugenic public, and create more value for customers.
About Suzhou Basecare Medical Corporation Limited
Suzhou Basecare Medical Corporation Limited is a third-generation IVF clinical solution provider in China and the first listed IVD company in the field of assisted reproduction (HKG: 2170). It is committed to the product R&D and clinical application of gene technology in the field of reproductive health. Basecare Medical has been adhering to the “well-crafted product” concept, adhering to the industrialization road of independent R&D and localization substitution, and has built multi-scenario solutions for assisted reproduction covering PGT laboratories, andrology laboratories, and frozen storage rooms. The PGT-A (pre-implantation chromosome aneuploidy testing) kit, a class III medical device product independently developed by the company, has won China’s first “special approval for innovative medical devices”, filling the clinical gap of third-generation IVF genetic testing kits in China.