Basecare Medical Announces 2021 Interim Results | The preliminary results of commercialization have been achieved, the sales of PGT-A kits climbs 168%
[Hong Kong, 30 August 2021] Suzhou Basecare Medical Corporation Limited (“Basecare Medical” or the “Company”, together with its subsidiaries, the “Group”, stock code: 2170), an innovative platform of genetic testing solutions for assisted reproduction in China, announced its interim results for the six months ended 30 June 2021 (the “Period”).
During the Period, the Group recorded revenue of RMB 50.2 million, representing an increase of 56.0% compared with the same period in 2020, which was primarily driven by the 168% increases in sales of PGT-A kits, 126% increases in instruments and 139% increases in CNV kits compared to those in the same period in 2020, and meanwhile, sales of NIPT also increased significantly, taking up approximately 27% of its total income. Gross profit was RMB22.2 million, representing a significant increase of 94.3% compared with the same period in 2020. The overall gross profit margin increased from 35.5% in the first half of 2020 to 44.2% in the first half of 2021. As a leading company of the genetic testing for assisted reproduction in China, Basecare Medical is the only company in the field in China to have a product portfolio that covers all key stages of the reproductive cycle. The Group has extended its reach beyond the pre-implantation stage to the prenatal and postnatal stages.
Actively promotes product commercialization and increases its market coverage
Since the listing on HKEx through Chapter 18A of the Listing Rules in Februray 2021, Basecare Medical is committed to promoting the commercialisation of its products with first mover advantages. The Group maintains a small and dedicated in-house sales and marketing team with a focus on serving key customers, such as third-generation IVF licensed hospitals and reproductive clinics. Its in-house sales and marketing team is also responsible for the promotion of its products to hospitals and reproductive clinics through academic marketing activities, to interact with KOLs as well as other industry professionals.
With the first and only NMPA-approved PGT kit in China, the Group enjoys first mover advantages in building and solidifying its sales channels and customer base. Currently, the Group has established presence in 41 reproductive centers nationwide and cultivated business relationship with more than 50% of the leading customers. The Group will enhance the in-depth penetration into leading customers to achieve a gradual improvement from the existing rate of 6%. Meanwhile, the Group will promote national academic conferences and public welfare projects, and further enhance the credibility of the Group's brand and the awareness and acceptance of the third-generation IVF genetic testing kit among the public. In addition, the Group will promote the upgrading of hardware equipment in reproductive center laboratories, focus on industrial chain layout of embryo cryopreservation equipment, and provide intelligent and automated integrated solutions for clinical trials to improve the Group’s competitiveness.
Pipeline products were made progress in an orderly manner Underpins medium to long-term growth
Basecare Medical is, to date, the only approved kit maker. The Group’s PGT-A kit, which screens for aneuploidy, a chromosomal disorder frequently associated with implantation failure in in-vitro fertilization, or IVF, in embryos prior to implantation, is the first and only third-generation IVF genetic test kit which has been approved by the NMPA. With the help of PGT-A kit, pregnancy and miscarriage rates from the Group’s clinical trial were 72.0% and 6.9%, respectively. The pregnancy and miscarriage rates in IVF without aneuploidy screening were 45.0% and 32.0%, respectively, according to various independent studies (Schoolcraft et al. 2010; Wang et al. 2010). During the Period, the Group recorded revenue of RMB14 million from sales of its PGT-A kits with gross profit margin of 71%.
The Group is developing two other pre-implantation genetic testing, or PGT, products, namely, PGT-M and PGT-SR kits. The Group’s PGT-M kit is designed to detect single-gene, or monogenic, defects in pre-implantation IVF embryos. It can not only help reduce chances for the baby to be born with or develop the relevant hereditary diseases, but also effectively stop the traits from being passed down to future generations in the patient family. To date. the Group’s PGT-M kit is the first and only product of its kind that has completed the registration testing in China. The Group obtained ethical approval for its PGT-M kit and commenced the clinical trials in July 2021. It expects to obtain NMPA registration approval in 2022.
The Group’s PGT-SR kit is designed to detect chromosome structural rearrangements, which are common causes of recurrent miscarriage. The PGT-SR kit adopts a proprietary ReTSeq technology that utilizes target capture technologies to focus on sequencing key genomic regions and conduct a haplotype linkage analysis to determine the parent-of-origin of a chromosome and detect carriers of chromosomal translocations. The related self-developed patent was registered with China National Intellectual Property Administration (“CNIPA”). The Group submitted the innovative medical device application for its PGT-SR kit in July 2021. It expects to obtain NMPA registration approval in 2024.
Attains strategic collaborations with QuantoBio and further promotes the ecosphere construction
In August, the Group entered into a strategic collaboration framework agreement with Beijing QuantoBio Biotechnology Co., Ltd. (“QuantoBio”), pursuant to which, both parties agreed to carry out strategic cooperation on the development, registration, manufacturing and sales of flow cytometry and accessory products in the field of, among others, sperm detection, multi-factor detection and infectious substance detection. Under the strategic collaboration agreement, the joint development of products and technical services in the field of assisted reproduction will be based on a QuantoBio’s flow cytometry platform and the collaboration may be carried out through exclusive licensing and promotion, ODM (original design manufacturer) model or OEM (original equipment manufacturer) model.
Dr. Liang Bo, Founder, Executive Director and General Manager of Suzhou Basecare Medical Corporation Limited, said “Since 2020, the impact of COVID-19 pandemic has posed significant challenges to both industry development and the operation of the Group. However, the recent introduction of a series of national policies to encourage “ three-child” and the assist reproduction industry has created a favourable policy environment for the future development of the Group, which presents both opportunities and challenges. As a leading company of genetic testing for assisted reproduction in China, Basecare Medical has achieved encouraging results in commercialisation. In the future, we will be more pragmatic and continue to increase our investment in research and development to strengthen our independent innovation and R&D capabilities. At the same time, we will further expand our product pipeline and enter more genetic sub-disciplines to create an ecological loop and become a leading global genetic technology company. Through technological innovation, we hope to provide more families with affordable solutions for assisted reproduction, including genetic testing. We will also help more families to have healthy babies and contribute more to China's reproductive genetic market.
About Suzhou Basecare Medical Corporation Limited
Suzhou Basecare Medical Corporation Limited is an innovative platform of genetic testing solutions for assisted reproduction in China. Its PGT-A kit, which screens for aneuploidy, a chromosomal disorder frequently associated with implantation failure in in vitro fertilization, or IVF, in embryos prior to implantation, is the first and only third-generation IVF genetic test kit which has been approved by the NMPA. The NMPA registration of its PGT-A kit, in February 2020, as a Class III “innovative medical device,” marked the birth of a regulated third-generation IVF market in China in which the Group is, to date, the only approved kit maker.