Precision medicine has become a common topic in the world. With the advancement of gene sequencing technology and the proposing of the “Belt and Road” initiative, precision medicine has brought benefits to a number of countries and people along the Belt and Road, and many domestic gene sequencing companies have begun to shift their attention to overseas markets. Today, Beijing ACCB Biotech Ltd. (hereinafter referred to as “ACCB”), with its brand originating from Tsinghua University, has become a leading brand in the domestic cancer molecular pathology diagnosis industry. And it has been committed to the development of precision medicine and comprehensive health industry. Recently, ACCB has participated in the “15th China-ASEAN Expo” held in Nanning, Guangxi, where it has fully displayed the related products, platforms and detection services of ACCB in the field of gene sequencing. Taking this opportunity, Seqchina.cn conducted an exclusive interview with XU Junpu, CEO of ACCB. XU Junpu told us the purpose and significance of the ACCB’s participation in the Expo, explained ACCB’s expansion on the precision medicine market in Southeast Asia, and shared his expectation of building a precision medicine ecosystem. The following is the record of the interview.

Implement the “Belt and Road” Initiative with a Try on the Precision Medicine Market in Southeast Asia

Seqchina.cn: The China-ASEAN Expo is a state-led economic and trade exchange event. What’s the original intention and purpose for ACCB to participate in such a comprehensive international exchange event for the first time?

XU Junpu: At this China-ASEAN Expo, ACCB displayed advanced gene sequencing technology and gene detection products. The reasons why ACCB participated in this Expo are as follows. First, the current strength of ACCB has allowed us to expand on the overseas precision medicine market. Previously, ACCB paid more attention to the domestic market in China and had no time or energy to expand on the Asia-Pacific or overseas markets. However, with the continuous development and growth of ACCB, the Company’s sequencing technology and gene detection products have become competitive with a certain market share, which means that it is time for its shift to overseas markets. Second, after one year of investigation, ACCB has decided to introduce the world-leading new sequencing technology and stable and reliable liquid biopsy technology for tumors. Although there are still some gaps between these technologies and the mature sequencing technologies and products of some domestic sequencing companies, this gives us more confidence to plan on the gene sequencing markets outside China based on these new technologies. Third, the “Belt and Road” Initiative provides policy support for ACCB to expand on overseas markets.

For ACCB, “participation” in the China-ASEAN Expo is more like a beneficial trial. At present, the Asian gene sequencing market is developing rapidly. With the continuous advancement of the biomedical industry in Southeast Asia, “going global” of Chinese genetic sequencing companies is a development trend, and Southeast Asia can be a good starting point for entering overseas markets. ACCB will have a general idea about the specific application prospects and market needs of gene sequencing technology in ASEAN countries, learn about and understand foreign governments’ economic policies and industrial policies in medical care and gene sequencing in advance, conduct extensive exchanges and seek multi-party cooperation in the fields of disease gene detection and precision medicine, so as to get ready for expanding business in East Asia and even the entire Asia-Pacific region and developing overseas markets.

Seqchina.cn: What is the significance of participating in the China-ASEAN Expo for ACCB’s plan on the Southeast Asian precision medicine market if not just for the sake of learning and exchange?

XU Junpu: Participating in the China-ASEAN Expo has a great and far-reaching significance for ACCB’s plan on the Southeast Asian precision medicine market.

First of all, TusHoldings initiated the establishment of “China-ASEAN Science & Technology Industry Cooperation Committee” in 2017, established the Belt and Road Science and Innovation Network, and conducted strategic cooperation with a number of governments in Southeast Asia. Participating in this China-ASEAN Expo enables ACCB to conduct exchanges on a larger and broader platform, and get ready for opening up the “Nanning Channel” and developing the Southeast Asian precision medicine market. Secondly, ACCB, as an alliance company of TusHoldings, also participated in the launch of the Belt and Road Science and Innovation Network and took the lead in becoming one of the first members of the Committee. Meanwhile, ACCB undertakes the corresponding tasks in the cutting-edge medical technology field, which enables the Company to play a positive linking role in the implementation of the “Belt and Road” Initiative in the field of precision medicine. We also hope to take this opportunity to establish industrial cooperation with overseas countries, so as to help Southeast Asian countries establish an industrial foundation in the medical high-tech field and ultimately achieve a win-win or multi-win situation. Lastly, ACCB has included the expansion on overseas precision medicine markets into its industrial development plan. To expand the world-leading gene detection products to the markets in such Asia-Pacific regions as Southeast Asia will also be a milestone in the operation and growth of ACCB.

From another perspective, ACCB opens up the Southeast Asian market through the “Nanning Channel”, which is also conducive to the development of the domestic precision medicine and gene sequencing industries, especially in scientific research. For example, the development of comprehensive health or gene detection products and services requires a large amount of gene sequencing data. Most of the overseas gene data currently used in China need to be purchased. Now we can acquire and integrate more national and ethnic gene information by opening up the Southeast Asian and Asia-Pacific markets. The gene detection products and services developed on this basis will be more comprehensive and more scientific. Of course, representative and authoritative gene detection products will not only promote the development of overseas precision medicine markets, but also benefit the domestic market.

A Two-pronged Approach to Meet the Demands of

 Both the Domestic Market and the Southeast Asian Market

Seqchina.cn: To expand on the Southeast Asian precision medicine market with the help of the Guangxi Nanning Channel is the strategic plan of ACCB. What kind of consideration is it for choosing Nanning?

XU Junpu: For expanding on the Southeast Asian precision medicine market by opening up the “Nanning Channel”, we have considered various factors. In terms of geographical location, Nanning, Guangxi has its own unique location advantage. Nanning is located at the junction of the economic circles of South China, Southwest China and Southeast Asia, adjacent to Southeast Asia. In addition, compared with other provinces adjacent to Southeast Asia, Guangxi is close to Guangdong and Shenzhen and thus has advantages in technological development and talent attraction. In terms of history and culture, Guangdong and Guangxi were inextricably integrated in the history, resulting in a lot in common in language, culture and customs. Therefore, it is easier to build a commanding point in Guangxi covering the Southeast Asian precision medicine and gene sequencing market, and Nanning can become a hub of ACCB to open up the Southeast Asian market. In terms of the development of the company itself, in TusHoldings’ market network, Guangxi TusCity has a very good layout with respect to its development and positioning. To break through the Southeast Asian market, Nanning, Guangxi is a good “base”.

Seqchina.cn: Recently, ACCB has announced the news that Yunnan ACCB Diagnostics has been put into operation. Does its plan on the Yunnan market aim to serve the development of the Southeast Asian precision medicine market, just like its plan on Nanning?

XU Junpu: It took two years from preparation to official operation of Yunnan ACCB Diagnostics. It is one of the important support points in our chain of medical test institutes in China. However, at the very beginning of the development of Yunnan ACCB Diagnostics, we did not consider expanding on the Southeast Asian market, but more considered the layout of the domestic gene sequencing market.

The medical conditions in the southwest region are backward and the medical level is relatively low. Although ACCB has offices in major cities in the southwest region, such as Chengdu and Chongqing, the clinical and market needs of the remote provinces are hardly met. In order to expand its business to more remote areas in the southwest region, bring domestic first-class medical technology and gene detection products to remote provinces and serve more people, Yunnan is the first choice of ACCB.

After China released the “Belt and Road” strategic plan, ACCB joined the Belt and Road Science and Innovation Network. Can Yunnan become the core for ACCB to open up the precision medicine market in Southeast Asia? After one year of investigation and thinking, we have come to realize that Yunnan ACCB Diagnostics is more oriented to the domestic market and that taking Nanning (Guangxi) as a starting point is more conducive to expanding on the Southeast Asian market. There are two reasons for this. First, Yunnan’s geographical location is more remote, and its transportation is not so convenient as Guangxi. Second, Yunnan’s high-end technological talents are relatively scarce, which is also the main reason. Guangxi has more potentials than Yunnan in terms of talent introduction in the future.

Build a Closed-loop Ecosystem in a Synergetic Manner

Seqchina.cn: In the future, for Yunnan ACCB Diagnostics that represents the gene sequencing market in remote areas of China, and Nanning Channel that represents the Southeast Asian market, what kind of relationship will ACCB build between them?

XU Junpu: Under the guidance of TusHoldings’ concept of “synergy”, no matter how different ACCB’s positioning and planning are for Yunnan and Guangxi, the two are of independent and synergetic relationship in technology and product development, operation and service. At present, Yunnan ACCB Diagnostics has been put into operation, whereas “Nanning Channel” is only a project initiated internally, and the related construction has not yet been fully launched. Guangxi is oriented to the precision medicine market in Southeast Asia. So its positioning, scale, talent level, products and services will be quite different from those of Yunnan. Although there is a gap between Yunnan and Guangxi in terms of geographical transportation and technological talents, Yunnan has the advantage of neighboring on many Southeast Asian countries, which will also play an important role in helping Yunnan develop high-end medical service industry in South Asia and Southeast Asia.

The medical test institute established by ACCB in each area is an independent legal entity with an independent team as well as independent technologies, products, operation and customers. The planning of Guangxi oriented to the Southeast Asian market in the future is also the case. But they all belong to the common parent companies - ACCB and TusHoldings. Subsidiaries in different areas will form a synergetic mechanism in the gene sequencing market and the precision medicine market instead of one party cooperating or assisting the other party.

Seqchina.cn: In addition to sequencing technology and gene detection products, what other aspects does synergy between subsidiaries in different areas involve?

XU Junpu: Synergy means many aspects. In addition to technology and products, it involves industrial planning and technology implementation. For example, recently, TusHoldings has visited the North China Pharmaceutical, a subsidiary of Jizhong Energy Group, which has advanced production facilities and production conditions, complete production lines and strong production capacity, and passed the international certification. However, due to the lack of wide range of R&D and technical product lines, the production lines are largely idle and the added value of the products is not high, which affects the efficiency of the company.

I can give a brief explanation on how to achieve synergy between TusHoldings and North China Pharmaceutical. TusHoldings has planned on the development of the global medical industry, invested in a number of top pharmaceutical companies at home and abroad, including R&D-oriented pharmaceutical companies, and owned many new products and innovative technologies. TusHoldings has also established a number of pharmaceutical business incubator projects to help foreign advanced innovative technologies and high-tech medical projects enter the Chinese market. After the projects are incubated, certain physical space is needed for their implementation, such as science parks and industrial parks in various areas. At this time, such excellent pharmaceutical companies as North China Pharmaceutical are required for participation and synergy to achieve technology implementation. In fact, in the entire medical innovation ecosystem, TusHoldings and ACCB have developed related products in different sectors and links, and made market layout, so the synergy between them is easy to carry out.

Seqchina.cn: ACCB has extensive exchanges and cooperation with upstream and downstream companies in the gene sequencing industry, domestic and foreign universities and pharmaceutical companies. For the deep integration of technology, industry and capital and building of an ecosystem for the precision medicine and comprehensive health industries, what’s your understanding and expectation?

XU Junpu: I personally think that under the general situation, China’s industrial development has the following features: First, technological innovation and industrial upgrading are the core driving forces of economic development. In recent years, China’s economy has continued to develop at a high speed. The government needs to upgrade the strategic emerging industries by introducing high technologies to achieve long-term sustainable economic development. Second, our country advocates innovative development models and industrial upgrading paths. From the past to the present, and even in the near future, China is taking a path of independent development with Chinese characteristics, such as the “Belt and Road” Initiative. ACCB hopes to explore a unique technological innovation and industrial upgrading path in the gene sequencing and precision medicine industry, actively meet the market demand of ASEAN countries in the field of biotechnology, share resources, achieve technical complementarity and develop more business opportunities in the era of precision medicine, and benefit more countries and people along the “Belt and Road”.

In addition, it is necessary to realize deep integration of technology, industry and capital, and build an ecosystem for the precision medicine and comprehensive health industries through cooperating with upstream and downstream companies and pharmaceutical companies in the gene sequencing industry and enhancing communication and exchanges with universities and research institutions. This will not only promote synergetic development and progress of various links of the industry, but also conduce to domestic technological innovation and industrial upgrading and accelerate the development of the precision medicine industry at home and abroad.

Conclusion

As XU Junpu told Seqchina.cn in the interview, ACCB has its own idea and industrial layout in the field of cutting-edge technology. Cutting-edge technology of precision medicine is inseparable from artificial intelligence. Artificial intelligence will be surely a part of cutting-edge technology and will play a major role in all fields. To this end, ACCB has tried some innovative models, such as internal incubation of a subsidiary, and combination of artificial intelligence and pathological diagnosis system, with some preliminary research progress being achieved. I believe that in the near future, ACCB will achieve better results in the field of precision medicine. So let us wait and see.