B A S E C A R E
The Acquisition of Cellpro by Basecare Realizes Powerful Combination in Andrology and IVD
November 3, 2021 · Suzhou
On November 3, 2021, Suzhou Basecare Medical Corporation Limited (hereinafter "Basecare") held an online press conference for the acquisition of Zhejiang Cellpro Biotech Co., Ltd. (hereinafter "Cellpro"). Xue Zhigang, founder of Cellpro, Huang Wen, General manager of Cellpro, Liang Bo, founder of Basecare and Dai Jing, Chief Financial Officer of Basecare attended the conference. The meeting was presided over by Xiao Jialong, Vice President of Asia Pacific Investment Banking and Capital Markets o

On November 3, 2021, Suzhou Basecare Medical Corporation Limited (hereinafter "Basecare") held an online press conference for the acquisition of Zhejiang Cellpro Biotech Co., Ltd. (hereinafter "Cellpro"). Xue Zhigang, founder of Cellpro, Huang Wen, General manager of Cellpro, Liang Bo, founder of Basecare and Dai Jing, Chief Financial Officer of Basecare attended the conference. The meeting was presided over by Xiao Jialong, Vice President of Asia Pacific Investment Banking and Capital Markets of Credit Suisse Group AG.

On November 3, 2021, Suzhou Basecare Medical Corporation Limited (hereinafter "Basecare") held an online press conference for the acquisition of Zhejiang Cellpro Biotech Co., Ltd. (hereinafter "Cellpro"). Xue Zhigang, founder of Cellpro, Huang Wen, General manager of Cellpro, Liang Bo, founder of Basecare and Dai Jing, Chief Financial Officer of Basecare attended the conference. The meeting was presided over by Xiao Jialong, Vice President of Asia Pacific Investment Banking and Capital Markets of Credit Suisse Group AG.

From technological innovations to industrial consolidation, the acquisition is to build industry giants.

The andrology laboratory and the embryo laboratory are key laboratories in assisted reproduction. The embryo laboratory mainly carries out in vitro fertilization, embryo culture, cryopreservation, preimplantation genetic diagnosis. High-quality embryos are selected for implantation through in vitro fertilization and genetic testing, thereby improving the success rate of assisted reproduction. Andrology laboratories mainly carry out relevant laboratory tests for male infertility patients. In addition to routine indicators such as sperm volume, sperm count, motility, and deformity rate, more sperm function tests are included, including sperm DNA integrity test, mitochondrial membrane potential test of the middle part of the sperm tail, and acrosome reaction test. Sperm functional defect is one of the main factors of reproductive problems and can more objectively reflect the fertility. The combination of routine and functional testing can provide more information for male fertility assessment and better guide clinical treatment. Therefore, on the basis of preimplantation genetic diagnosis, comprehensive screening of sperm improves the treatment of infertility, provides better assisted reproductive plans and increases the pregnancy success rate.

At present, the incidence of infertility in China was about 12%-15%, and male factors accounts for about 40%. The market size of male infertility test in China is expected to exceed 7.8 billion, while the current market size is only 500 million. There is still a huge growth space. At present, the development of the domestic assisted reproductive market is still in the primary stage, and the industry lacks standardization and competitive patterns. This is the best time to optimize the structure, expand production capacity, and layout the future market. Acquisition and resource optimization are quite effective.

The acquisition is the integration of industry leaders in sperm screening and embryo screening, which can provide compressive solutions in assisted reproduction and optimize the industry structure.

One of the earliest and largest companies in male IVD.

Cellpro, a high-tech enterprise in reproductive medicine with sperm function test as the core business, has strong scientific research strength and industry-university-research transformation. It has won the Second Prize of the National Science and Technology Progress Award. Cellpro is one of the earliest and largest male IVD companies in China, and also one of the largest suppliers of flow cytometry kits in China. Its DNA Fragmentation Index (DFI) has been recognized by mainstream clinical workers in China. It pushed DFI into the Expert Consensus on Male Reproductive Genetics Examination and the Guide for Diagnosis and Treatment of Male Infertility, and undertook 13 scientific research projects, including 7 national-level projects, and obtained 13 patents and 3 software copyrights. Among them, Cellpro DFI kit has obtained the filing certificate for medical device recognized by NMPA, the copyright of the analysis software matching the reagent, and the patent technical certificate for live sperm sorting. Cellpro maintains close technical cooperation with Chinese Academy of Sciences, Chinese Medical Association, China Sexology Association, State Key Laboratory of Reproductive Medicine, State Center of Assisted Reproduction and Eugenics Engineering, Peking University, Tongji University, Nanjing Medical University and Harbin Institute of Technology, and has carried out industrialization. Cellpro's business scope covers 30 provinces, municipalities and autonomous regions, and has established cooperative relations with more than 400 clinical medical institutions, providing testing services for over 2 million couples who prepare for pregnancy.

Professor Xue Zhigang, founder of Cellpro, said that Basecare is a leader in IVD. This acquisition can give full play to the advantages of Cellpro in andrology and help Basecare to promote technological innovations. With AI, the technical bottleneck of Basecare in andrology will be broken. Meanwhile, with the resources of Basecare, Cellpro can continue to develop in assisted reproductive industry, form a brand new "hardware and software" model, and construct an industrial chain covering the full reproductive cycle.

Dr. Liang Bo, founder of Basecare, said that the domestic bio-medicine industry has entered a stage of industrial scale, and it is necessary to carry out industrial integration for synergy effects. Cellpro has engaged in andrology for many years with high product recognition and popularity. This acquisition will integrate and share the channel, academic and technological resources, realize joint R&D, registration and production of kits and instruments, accelerate the localization of platforms and instruments, and continuously expand the business in andrology to construct a more comprehensive full reproductive cycle solution for infertility patients. We hope to make Cellpro not only the largest in China, but also the leading international professional platform for men, and jointly promote the healthy development of the assisted reproductive industry.

The past decade saw biomedical technology innovations. The next decade will witness the integration, acquisition and standardization of industry head enterprises. This acquisition is a great event in IVD. The development of the assisted reproduction requires the head company's continuous market investment and R&D. Basecare will be committed to building a larger platform for R&D and innovation, providing solutions of full reproductive cycle, promoting the transformation of scientific and technological achievements, and accelerating the industrialization process. Basecare will not only take the lead in China, but also in the world, so as to benefit patients worldwide.