Technology Transfer & Commercialization Practice in China Health and Medical Sector Wenhuan Xia Managing Director, International Technology Commercialization CCPIT-China International Economic Cooperation & Investment Inc. xiawenhuan@ccpit.org
Technology commercialization and funding system Technology Transfer is the process of transferring, for example, skills, knowledge, intellectual property, technologies, methods of manufacturing, samples of manufacturing and facilities from one organization to another to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. Funding system: Government grant or subsidy Public research project Contract research service Academic-industrial engagement Angel investment and venture capital Pre-commercialized investment FDI and M&A 2
Academic spin-out and funding A spin-out company can be defined as a new, small, company formed to exploit IP developed during the course of an individual's employment in a larger organization (e.g. a university). A spin-out company requires all forms of funding both from public and private 3
Government funding opportunities CHINEKA 4
Case I, Mediage (Korea) and CIMING (China) Mediage system which is designed to guide a way to healthy life by measuring biological age. Mediage is a biological measurement system which provides people the index of health and aging with the number of age, based on data coming from health check-up. Mediage is a front runner to establish various kinds of business ecosystem related to medical field, healthcare field, and health management on grounds of biological age. Mediage 3 patents include measurement system and apparatus, metabolic syndrome biological age measurement system and apparatus, and viscera age measurement system, and more to test biological ages of muscle, compliance, heart and lung persistence, blood pressure, glucose, ASO, and telomere. Mediage provides comprehensive evaluation index of major organs and body shape. CIMING is the 3rd largest medical checkup group in China and is transforming to a O2O business model from traditional offline medical checkup clinic. CIMING has set up a smart healthcare management platform, but no products like no cars and drivers on a high express way. Mediage and CIMING signed an exclusive technology distribution agreement in CN, H.K and Taiwan in the following 5 years since early 2016. As the first step, both are engaged in IT infrastructure establishment including Data base porting, Application porting Application porting, API Interface, User Manual, test and medication. The total deal is about 75 M, not including IT infrastructure arrangement with the cost of 3 M=a contract research service order 5
Case II, Echosens (France) and Furui (China) Ultrasound based technology used to assess liver fibrosis, A spin-out of Paris Diderot University, licensed to Quattrocento, which is a private Paris-based company founded in 2010, dedicated to innovating projects issued from French Universities in the life science tool markets. Quattrocento brings some early stage technologies out of Paris 7 th to global market. Partnership with Chinese Inner Mongolia Furui Medical Science Co., Ltd in 2008 (FuRui dedicates to hepatology professionally, and focuses on liver fibrosis specially to build up professional healthcare service system.) In 2008, an exclusive distribution partnership with Furui. In 2011, Echosens sold to Furui for 20 million (M&A). FibroScan is a new type of liver fibrosis testing instruments in China, which by measuring the hardness of the liver to determine the extent of liver fibrosis. liver fibrosis accurate classification can be a partial substitute for liver biopsy In 2014, Sales of FibroScan over 20 million. 6
Case III, West Ontario (Canada) to Sinoboway (China) Promotion Therapeutics, a spin-out from West Ontario Univeristy Sinobioway Biotech Group, a Peking University sponsored company In 2012, a joint laboratory set up by both to handle pre-clinical study, clinical I and II for the project of Innovative pharmaceutical therapy for promoting regeneration of the nervous system trauma. In 2014, a JV established to handle sales, marketing and production. Academic engagement means collaborative research, contract research, consulting and informal relationships for university industry knowledge transfer. Academic engagement represents an important way in which academic knowledge is transferred into the industrial domain; many companies consider it significantly more valuable than licensing university patents. Venture investment further facilitate the technology transfer process 7
Case IV, Investment by BAT in e-health sector Collect vital signs at front end Internet-based An overall analysis of big data through cloud-based computing and backend algorithm Aging of population in China Aging people over 200 million, 14.8% of the total in 2013; while it is estimated over 250 million and 16% of the total in 2020 Chronic disease Over 17 million of premature deaths, 85% of which is chronic disease, huge cost of treatment for coronary heart disease and diabetes Over 30 million overweight and obese, 160 million patients with Dyslipidemia and 280 million people suffer from chronically ill Chronic disease becomes younger and younger in average age (most patients are between 40 and 50) Sub-health group Over 300 million people Popular among high salary, high position, heavy pressure, and retired
Case IV, Investment by BAT in e-health sector Baidu 百度医前问诊 on line, in 2013 Dulife, in 2013 北京健康云, in 2014 O2O JV with 301 Hospital, in 2015 Tens of millions dollars investment goes to 医护网, in 2015 Alibaba 寻医问药网, in 2011 U 医 U 药, in 2011 华康全景, in 2014 阿里健康 支付宝未来医院 天猫医药馆等, in 2015 Tencent 微信支付医院, 糖大夫 血糖仪, in 2014 邻家医生, 丁香园, 挂号网, in 2015 9
Case IV, Investment by BAT in e-health sector Jan, 平安好医生 公测上线 by PINGAN Mar, MedSci invested by QIMING Ventures Apr, 华康移动医疗 got 200 million invesment May, 一呼医生 got 10 million dollars investment May, 复星医药 与 挂号网 set up O2O partnership Jun, 景林投资 & 唯品会 invest 30 million dollars to 贝联科技 Jun, 问问医生 got 30 million investment Jun, 糖果云 got 30 million investment Jul, 汤臣倍健 invest 62 million strategic investment to 大姨妈 APP 10
Funding and an ecosystem A good ecosystem with incubation facilities and a comprehensive business support programme which includes advice, seminars, one-to-one consultancy, workshops and individual training, business plan guide, mentor network and international marketing strategy ROI: All forms of funding, except for grants, require repayment. The amount of repayment required (debt plus interest or profit) will reflect the nature of the funding, the amount of money requested, the length of the investment and the risk that the funder is taking. Banks, Venture Capitalists and Angels may require warranties or security. In all cases, a robust business plan and a competent pitch (a short oral presentation) are required. 11
ITRI case and reference Industrial Technology Research Institute (ITRI) has played a vital role in Taiwan's economic growth as it shifted from a labor-intensive industry into a value-added, technology-driven one. Its recent applied R&D achievements : Smart Living, Quality Health, and Sustainable Environment, very aligned with industrial development needs ITRI has multiple collaboration models to adapt to different needs or situations: Contract research: ITRI may conduct testing, material evaluation, prototyping or research services for international organizations on a contract basis. Joint research: This type of research encompasses the majority of ITRI s international collaboration projects, with each party carrying its own funding. Conclusion: A demand-pull approach, by which businesses seek out and cultivate university technologies, would be much more useful. 12
What we are doing in China Innovation Zones Shijiazhuang Tianjin Nanning Quanzhou
What we are doing in China Funding approach China International Economic Co-operation and Investment Inc. (CIECI), a subsidiary of the China Council for the Promotion of International Trade (CCPIT) has, in co-operation with local governments, created five International Innovation Zones. These zones are designed to accommodate both Chinese and overseas knowledge based companies in purpose built facilities. Haimen Zone: Co-manage special grant and fund by Haimen Industrial Technology Research Institute, available for international startups, including 100-500k startup grant, and a 500k- 2M research and incubation fund for each Shijiazhuang Zone: Co-funding international knowledge-based startups or spin-offs Tianjin Zone: Co-manage a soft-landing zone for international SMEs Focus areas: biological medicine, medical device and consumables, medical imaging, e-health, Business model: each participating company transfer 5-10% equity to CIECI when setup and CIECI will do pre-commercialized investment after incubation period
Thank you for your attention Wenhuan Xia Managing Director, International Technology Commercialization CCPIT-China International Economic Cooperation & Investment Inc. xiawenhuan@ccpit.org