Gene Technology "Corner Overtaking": Dismantling The Chinese Gene "Innovation"

In 2019, in China's biomedical industry, it was an extraordinary year. Health care reform policies were frequent, medical insurance negotiations, consistency evaluation and other policies had a profound impact on the pharmaceutical industry. The gradual tightening of the pharmaceutical policy made the concentration of industries continue to improve and the survival of the fittest accelerated.

In the coming 2020, under the general trend of transformation pains, it is inevitable to leave generics in the era of high Maori. No matter the traditional pharmaceutical enterprises or innovative pharmaceutical enterprises, they are rethinking their own positioning, accelerating the pace of innovation and moving towards high quality development.

Despite the historical reasons, China's biopharmaceutical industry is short of Europe and America. But in the field of domestic gene sequencing, the Chinese enterprises represented by Hua Da Ji have become the leaders of the new industry. Through continuous layout innovation, we constantly promote breakthroughs in the development of the industry and lead the industry to develop with high quality. To some extent, we have achieved "bend over" the rapid development of foreign industries.

Relying on the domestic self sequencing platform, the cost of sequencing is controlled, and the technical barriers to genetic testing are broken through. Nowadays, there is only one way to reduce costs: innovation. Whether it is breaking the monopoly of foreign materials and technology, or upgrading products, it is inseparable from R & D. R & D is based on data for people's livelihood. Therefore, data driving force, R & D constant power and people's life endurance ability together form the "innovation power" strategy of Chinese big gene.

Big data driving force

Since 2014, when big data was first written into the government work report, China's big data industry has reached unprecedented heights. At the same time, big data permeated all walks of life and reshaped the pattern of various industries.

Big data is the cornerstone of precision medicine. In recent years, the development policy of health care big data industry has sprung up like mushrooms. According to the prospective industry research institute, as of 2019, the national health and medical data industry has issued 14 policies, and the development mode of health care and big data has basically been established and the industry is developing vigorously.

The big data of precision medicine is based on the capture of real world data, which guides clinical medicine and health management through data mining and bioinformatics analysis. The "big" of big data can be understood as "width" and "depth", that is, "horizontal" and "vertical". On the one hand, "Heng" refers to the type of sample gene data. Huada has been involved in many important scientific research projects, and has completed many kinds of gene sequencing work, such as the first Asian atlas mapping, the rice genome frame map and the fine map. At present, there are ten sequencing products in the big genome business, including the whole genome sequencing, whole exon sequencing and De novo sequencing. "Vertical" refers to the accumulation of sample quantities.

As of June 30, 2019, the clinical detection of Chinese big gene product has accumulated nearly 9 million people, and over 70 thousand patients have provided tumor related gene detection services. Infection control and detection has accumulated about 56 thousand samples, and the sample has accumulated obvious advantages.

According to CDI's "list of top 100 Chinese AI enterprises in 2019", China's big gene is ranked sixth (ahead of BATHK), ranking first in the field of intelligent medicine. The genetic database, tumor database, pathogen database and other databases were constructed by the Chinese big gene, making it more precise analysis ability and stronger detection ability.

Compared with the traditional statistical evidence-based medicine, precision medicine takes more consideration of individual factors. Genes as the most important factors related to individuation are of great significance. The acceleration of genetic testing is also unable to get rid of the ceiling of linear growth. The accumulation of large data based on genetic testing is the core competitiveness of precision medicine, and it is also the driving force for the future development of genetic technology in a high quality and leaping way.

R & D constant power

The continuous investment in R & D and the layout of the whole industry chain have become the key to form the "innovation" strategy.

In the third quarter of 2019, the performance of Huada gene continued to grow, but net profit declined. Huada says that its business is generally stable, and that the reason for slowing net profit is mainly the increase in R & D investment and marketing expenses.

The gene sequencing industry belongs to the new economy with high growth. The development characteristics of the industry are embodied in the huge investment in R & D and marketing. Many world leading biopharmaceutical companies often present the characteristics of "double high" in terms of sales cost and R & D cost. R & D consolidate technical strength, expand market coverage, and "two legs" are indispensable. Because the public's cognition of gene technology is still very limited, the density of such companies in market promotion naturally needs to be stronger, and even to a certain extent, they should assume the role of science popularization in the industry. For example, the cost of R & D and sales expenses of the leading enterprises in the United States, Natera, cancer company ExactScience and infection company Cepheid in 2018 were generally higher, and in 2018, they lost 880 million yuan, 1 billion 200 million yuan and 320 million yuan respectively.

In contrast, after years of cultivation, the Chinese gene has been relatively efficient. Compared with domestic and foreign counterparts, Huada's R & D cost reached 260 million yuan in 2018, up nearly 50% compared with the same period last year, and 346 patents were granted. Sales expenses accounted for 26.8% of the revenue, which was lower than that of more domestic and foreign industry benchmarking companies, mainly due to its unique livelihood projects, and the government's strong organizational capabilities to achieve a wider range of business coverage. On the whole, with the input of resources and laying stress on strengthening the future technological strength, the big gene has gained good results. It can be described as a sample enterprise with high quality development in the global gene technology industry.

Endurance of the people's livelihood

The gene technology industry is connected to the well-being of the people and is linked to economic development.

Genetic technology can provide services to people, including testing and supplementary treatment, and technology can give back to people's livelihood. This requires genetic testing companies to achieve two aspects, one is product service technology, and the other is to make people affordable, so as to promote the real high quality development of the industry.

In terms of "do it", the strength of the Chinese gene is beyond doubt. The layout of the technology products is comprehensive, and it is the few enterprises in the industry that cover the birth health, tumor prevention and control, infection prevention and control, multi group learning big data and synthetic business scope, and have the advantage of the whole industrial chain. In addition, the Chinese big gene attaches importance to quality management and insists on "leading the industry to lead the quality first". It has passed many professional laboratory accreditation, such as CAP accreditation and CLIA certification of the American Pathologists Association.

In September this year, the national standard "information technology biometrics identification data exchange format fourteenth part: DNA data" and the national standard "target gene region capture quality evaluation general principles" of the Shenzhen Huada clinical laboratory center were approved and issued. China's big gene said that by participating in the drafting of the above national standards, it is conducive to giving full play to its own advantages, playing an exemplary and leading role in the industry's products and technological progress, and continuing to promote the progress of the industry.

In terms of "affordable", based on the cost controllable advantage of the domestic independent platform, Huada gene has built a unique livelihood project mode. Through the strong organizational capability of the government, the gene detection technology has been popularized in a wider range, and realized the benefit of more people under the same expenditure of health economics.

Yin Ye, a CEO gene, has said that the Chinese gene is not worried about whether technology can be realized, but whether it can benefit the people. "I just worry that precision medical treatment will become elite medical treatment and make life unequal."

The Chinese people's livelihood project has also been on the road. As of June 30, 2019, the China People's livelihood project has covered more than 20 provinces, autonomous regions and municipalities in more than 60 districts. In the first half of 2019, the company added people's livelihood projects such as Ganzhou, Jiangxi, Guangdong, Zhaoqing, Sichuan, Luzhou and other places, and the new screening sample volume was more than 100 million. In July 2019, the Chinese big gene was awarded the non-invasive prenatal genetic testing service for pregnant women in Hebei province. It was also the first people's livelihood project to achieve full coverage at the provincial level, and further expanded the regional layout of genetic technology for the benefit of mankind.

Big data driving force, R & D constant power and people's endurance force support the Chinese big gene from three angles. Big data driving force enables China's big gene to develop high precision medical care and take the lead position in the industry. Research and development force keeps the Chinese gene walking on the road and will not be complacent. At the same time, the Chinese gene will not forget its original intention, adhere to the populace of the products, and continue to use the people's livelihood. "Three forces" are indispensable to jointly promote the high quality development of the Chinese gene.