New Open Source: Acquisition of BioVision, Capture Precision Medical Strategy Heights

January 11, New Open Source (300109) responded to the SFC inquiry letter, on the issue of shares to buy the United States BioVision company and raise matching funds for the program to explain further, mainly around BioVision's core competitive advantages, products, technology, talent, customers, valuation, and synergy with the new open source" new open source current strategy can be summed up in three words, that is, follow the national strategy, accelerate international exploration, focus on women's healthChairman Fang Watson said, "Precision medicine is a major national strategy, the layout of the new open source and future development is also based on the national strategic planning arrangements." With the acquisition of BV, our aim is to capture the precision medicine leadership, BV as a precision medicine cutting-edge technology direction and platform to explore the field of precision medicineNew open source belongs to the world, our strategic positioning internationalization, BV is an international extension platform, help us to introduce cutting-edge development technology, broaden overseas investment and financing platform, in fact, before the acquisition of BV, we also made a lot of overseas deploymentThe area of women's health has always been a particular focus, early diagnosis has begun to bear fruit, and we will continue to focus on this area in the future, continue to increase investmentThe future company will be the growth of the internal health at the same time, increase the intensity of extension expansion, along the precision medical industry chain actively layout, with better value to return to the vast number of investors"
acquisition ofBioVision,competitive advantage highlights
It is reported that BioVision, as a provider of life science research tools, has launched more than 6,000 products including bioanalytical kits, recombinant proteins, enzymes, antibodies, etc., mainly for research institutes, universities, hospital research rooms, biotechnology companies, pharmaceutical companies,pharmaceuticaltesting companies, diagnostic reagents, food productioncompanies, such as , and other well-known companies, such as The Global 　　BioVision is primarily for top-notch researchers, and must keep up with the latest research and development direction of life sciences, timely research and development to provide corresponding products It is reported that the average research and development cycle of BioVision products is 2 to 3 months, far below the industry average time, BioVision can develop and successfully market more than 100 new products each year, over the years through a large number of rapid product promotion, to build their own brand advantages in addition to the , the company also has core assets - top research and development team, more than 40 research and development personnel for doctoral and postdoctoral degrees, in more than 60 core journals published a total of nearly 400 papers, including more than a dozen employees have published more than 10 articles per capita, and a number of papers published in "Nature", "Science" and other top journals Founders Dr Gordon Yan and Dr Gloria Zhang will re-sign a five-year employment contract with BioVision and a no-competition, no-recruitment agreement with BioVision before the closing date " In fact, BioVision's current research and development system and incentive mechanism is very standardized and effective, for the cutting-edge areas of high attention, product marketing sales for research and development personnel to bring continued benefits, so the annual turnover rate of research and development personnel is very low In addition, we respect BioVision's culture and management model, and will adopt a series of long-term incentives to ensure the stability of our core employees Chairman Fang Watson said to build a core advantage in research and development BioVision, reduce costs to achieve differentiated competition
Chairman Fang Watson believes that BioVision stands at the top of the life sciences research pyramid and plays an important role in the overall business structure of the new open source In the field of precision medicine, the new open source focus on the industry chain of the most upstream genetic sequencing equipment, consumables and reagents research and development, in layman's terms, BioVision products are reagents, walk in the forefront of life science research, with high technology and talent and other competitive barriers, not easy to be imitated and surpassed by peers, the new open source acquisition BioVision, is actually from the source of research and development to start an effective breakthrough, break the industry's existing homogenous competition, and help the new open source in the field of precision medicine to achieve differentiation can achieve product differentiation, the key lies in the ability to obtain the most upstream research and development resources that other peers can not obtain, and these resources industrialization into market products BioVision currently has more than 10,000 products, many of which are interesting, such as through an obesity test kit, to see if the obese person being tested is born or acquired In the future, the new open source program will select some interesting products and apply for relevant patents for pilot production and sales, and differentiate competition by cultivating new products in addition, on behalf of the forefront of immunotherapy CAR-T cell immunotherapy is also an important direction of BioVision future research, it is understood that car-T can only treat part of the blood tumor, there is no CAR-T can play an effect on solid tumors, once the breakthrough of the new open source will be explosive growth opportunities, for the subsequent differentiation of new open source products laid a development foundation 　　BioVision as a reagent can help companies reduce operating costs and generate strong synergies Help the company with the sequencing equipment supporting the closed reagents, as well as high-fit open reagent research and development production, cost control made a major breakthrough, through the sharing of products, technology, will further improve the quality of precision medical services such as BioVision has developed the fourth generation taq enzyme, which can meet the needs of large areas of gene sequencing, as key raw materials needed for gene sequencing by Sanji and crystal-energy organisms, filling the gap in the upstream gap of listed companies in the precision medical industry chain the new open source of the previous generation of sequencers mainly purchased from Kaijie, the equipment cost about $90,000, a site price between 17 yuan to 21 yuan The future equipment localization, based on Sanji bio-pyricoacid sequencing technology of the first generation of sequencer was born, the cost can be reduced to less than 100,000 yuan, a site price between 6 yuan to 7 yuan, BioVision joined, a site can be reduced to 2 yuan to 3 yuan, can significantly reduce the cost in addition to equipment localization and reagent research and development breakthrough, reduce operating costs can also be achieved through the large-scale procurement of precision medical equipment, in the second generation of sequencer, crystal-energy biological in the field of gene sequencing CRO service has a first-mover advantage and stabilize customer resources, but IIIumina equipment market share is very high, the new open source will be mainly through the expansion of channels, and strive to achieve the procurement of equipment and operating costs through scale diUmina equipment, to achieve the best procurement of equipment and operating costs in the country Fang Watson, chairman of the of the , believes that the new open source belongs to the world The acquisition of BioVision will accelerate the internationalization of new open source, in the scientific research side, BioVision is at the forefront of life sciences, and has a high reputation and reputation in the circle, conducive to the promotion of new open source international influence; concerned about women's health, actively build a drug guide
the new open source is the leading enterprise in the PVP industry, in 2015 through extended development, completed the acquisition of three subsidiaries of Hol Medical, Sanji Bio, Crystal Energy Bio, successfully cut into the early diagnosis of tumor, molecular diagnosis, genetic testing and other business areas the medical treatment of the main focus on women's health, pay attention to the "two cancers" problem In the area of cervical cancer, the introduction of E6/E7 protein detection technology has enriched the original cervical cancer DNA quantitative analysis system technology platform, the new "cervical cancer screening - artificial intelligence integrated solution." on breast cancer, Heyer has partnered with the Karolinska School of Medicine in Sweden and the Heidelberg School of Medicine in Germany to build a new revolutionary early diagnosis project for breast cancer, and in collaboration with the Heidelberg Medical College in Germany It is reported that Heidelberg Medical College is the world's first medical school, in the field of medicine has a high degree of authority, Oher is the first Chinese company to cooperate directly with Heidelberg Medical College Fang Watson, chairman of the , believes that The new revolutionary early diagnosis technology for breast cancer is different from traditional diagnostic techniques and BRCA prediction techniques Traditional clinical palsy and imaging, such as color super, radon target detection, can only identify larger diameter tumors, the treatment of the later stage of the disease is more helpful Julie Angelina Jolie' BRCA test is based on a predictive test, predicting that Julie has an 85 percent chance of developing breast cancer is an early diagnosis technique of peripheral blood tumors, which can detect early-stage lesions of the breast or tumors with a smaller diameter, and has unparalleled value in contributing to women's health," the current results of more than 3,600 tests in the project show that sensitivity and specificity are 98%, which is basically consistent with retrospective clinical Chairman Fang Watson said, "At present, the project is in the domestic clinical certification stage, put on the market will bring great convenience, so that more patients can detect cancer at an early stage, cancer treatment, but also to help us in the breast cancer detection market to achieve differentiated competition, in addition, the company has done research on ovarian cancer, pancreatic cancer and so on." "
the current "two cancers" screening has become the most extensive coverage of the examination, domestic hospitals more than 40 million cases a year, of which the government organizations reached more than 20 million cases, the government will also give screening services to provide enterprises with certain subsidies, but the local subsidy standards slightly different, such as Beijing area, each case of government subsidies 360 yuan If the early detection program for breast cancer in The Hammer is included in the "two cancers" screening testing program, it will not only benefit the detection of early cancer, but also facilitate the rapid opening of the market space for companies with high-tech low-price technology in addition to focusing on the layout of women's health field, Sanji Bio participated in the "drug genomics and Chinese people's comprehensive evaluation system of precision drugs" national key research and development projects, the traditional drugs of major diseases of drug genomics and personalized precision drug research, is also an important direction for the future development of the new open source " at present, for the project company supporting investment reached 40 million yuan, is expected to continue to add funds in 2018, but we believe that these investments are far from enough, precision drug research has a long way to go Chairman Fang Watson said drug guidance is part of the national precision medical strategy, now Europe and the United States have established a more perfect drug guidance standards and indicators, but our country has not yet achieved, the new open source under the leadership of the government, increase investment in drug guidance, participate in standard-setting, strategic significance to the national level , the establishment of drug guidelines is also conducive to strengthening the understanding of drug guidance among doctors and patient groups Although the establishment of drug guidelines for patients is of great significance, but the domestic doctors and patients rarely have this understanding, in fact, because individual differences on drug acceptance and adaptation is not the same, see a doctor and choose to take drugs before the first drug test is very reasonable, can reduce the patient's trial pain, to solve the problem of taking a variety of drugs that are ineffective for the patient itself, and delay the patient's valuable treatment time in the field of precision medicine, the new open source focus on psychotropic drugs, psychotic schizophrenics in the total population accounted for a high proportion of 2%, many patients need life-long use, and every once in a while to adjust the drug, the process of testing drugs is very painful In addition to psychotropic drugs, oncology and cardiovascular are also the company's focus With the establishment, promotion and application of drug guidelines, new open source guidance technology and product promotion in drug use will accelerate quickly set up a precision medical laboratory, lock the core channel resources
light have rice pot, no firewood or not If the acquisition of BioVision is to capture the core resources of the industry chain research and development, it is through the new precision medical laboratory, binding downstream local channels and expert resources, is the new open source in recent years to do another important thing December 28, 2017, New Open Source announced that its wholly-owned subsidiary, Beijing New Open Source, has opened 16 subsidiaries in China, dedicated to the operation of the precision medical business segment At the same time, the registered capital of 16 companies is 10 million yuan, and by Beijing new open source each contributed 5.1 million yuan, accounting for 51% of the shares, the remaining paid-in funds are a number of institutions and natural persons Chairman Fang Watson believes that the company set up a precision medical laboratory, away from the original industry agent business control channels this intermediate model, is actually a new business model, the ultimate goal is to create a strong resource platform, further expand their downstream channels, for the company to acquire BioVision, product industrialization landing, in the channel to provide strong support listed companies have the controlling power to precision medical laboratory, institutions and natural persons to participate in this way, this way is conducive to the injection of resources between the two sides, to achieve local channels and listed companies mutual benefit and win-win situation; "In the future, we will also rapidly increase the number of precision medical laboratories to achieve scale effects, with a target of 100 this year and 300 in the next few years," Chairman Fang Watson said, "With the increase of the number of laboratories, can form a strong platform effect, through the listed companies to form a strong capacity for resource integration." "