This document provides an overview of local biotech companies in Hong Kong Science and Technology Parks (HKSTP). It summarizes 15 diagnostic companies from local universities in HKSTP, including those from Chinese University (CUHK), University of Hong Kong (HKU), University of Science and Technology (UST), and Hong Kong Baptist University (HKBU). It highlights several local high-fliers, including Prof. Dennis Lo from CUHK who founded Arbele and Xcelom, and Prof. Michael Yang from CityU who founded Multigene Diagnostics and Genetel Pharmaceuticals. It also discusses trends in personalized medicine, obstacles, and examples of novel designs and a start-up biotech company to illustrate

1. Presentation
“Local Biotechs: Unleash the Power ”
By
Joseph C. K. Liu
MBA, Ph.D
China Concord Limited
20 August 2016
HK Polytechnic University

3. Selected Diagnostics Companies in HKSTP
SanWa Biotech: IVD, ALiA (Array Based LED induced fluorescence
ImmunoAssay platform, Lab-On-Chip (LOC) platform)
Amvet Biosciences: Animal genetic DNA testing
Arbele Biopharmaceutica (CUHK): Therapeutics for GI & lung malignancies
GemVCare (CUHK): Hong Kong based genetic testing target diabetes
Hai Kang Life: Lab-On-a-Chip (LOAC) - Platform detect target genes
BerryGenomics (Beijing): DNA sequencing technologies to prenatal & cancer
clinical genetic test
HSK GeneTech (CUHK): Genomics and hi-throughput sequencing in Food
Research and Core Facilities of Genome Research
KingMed Diagnostics: Medical diagnostics testing, clinical trial testing, medical
research services and hygiene testing, molecular diagnostic techniques to
detect, identify and quantify infectious agents
Living Tissues Company (HKU): Tissue Engineering Laboratory, Living Tissues
use the donor's stem cells and grow a complex tissue plug

4. Selected Diagnostics Companies in HKSTP
(Cont’d)
NanoBioImaging Ltd (UST): Super resolution microscopic bio-imaging
Novus Life Sciences (HKU): Orthobiologics, injectable biomaterial for minimal
invasive surgery, biomaterials formulation in repairing bone and cartilage
OncoSeek(HKU): Cancer diagnostics for personalized cancer screening assays
thru advanced biomedical technology, early and real-time screening of
invasive cancer & personalized non-invasive cancer screening assays
Oper Tech (HKBU): Nanomaterial-based personalized medicine, nanomedicine:
1. Individualized stem cell therapy 2. Novel surgical technology 3.
Nanodrugs 4. personalized medicine (2016 Grand Prix at 44th Geneva
International Exhibition of Inventions Award)
Sonikure Technology (UST): Intravitreal injection for retinal diseases, deliver
drugs in eye with low energy and low intensity ultrasonic technology
Xcelom(CUHK): T21 prenatal diagnostics, genomics technology for genetic
sequencing innovations

5. Statistics of Local Diagnostic Co’s.
 Tot. 38 Co’s currently in HKSTP
 15 from local universities (40%)
 CUHK (4, 27%), HKU(3, 20%), UST (2, 13%),
HKBU(1, 7%)
 CityU spinoffs not listed because they either
graduated earlier or never admitted in HKSTP
incubation/regular tenant program

6. Examples of Local High-Fliers
 Prof. Dennis Lo (CUHK):
Arbele and Xcelom
 Prof. Michael Yang (CityU):
Multigene Diagnostics Ltd., Genetel
Pharmaceuticals Ltd, Prenetics
 Prof. Cheng, Shuk Han(CityU):
Vitargent (International) Biotechnology

7. Professor Lo Yuk Ming, Dennis (CUHK)
 Director of the Li Ka Shing Institute of
Health Sciences (CUHK)
 Numerous publications in Nature & Science
magazines among local academia (Pic 1)
 Xcelom: Non-invasive Prenatal Test for
Down Syndrome, 'safeT21' (sensitive
analysis of fetal DNA for T21 screening) vs
invasive procedures such as amniocentesis
and chorionic villus sampling (0.5% to 1%
chance of pregnancy miscarriage)
 Arbele Biopharmaceutical: screening for
signs of cancer from a simple blood draw

9. Professor Yang Mengsu,Michael (CityU)
 Multigene Diagnostics Ltd., molecular diagnostics
for early detection of diseases
 Genetel Pharmaceuticals Ltd., DNA diagnostic
technology (SNIPERTM-HPV early detection of the
human papillomavirus, causes all cases of cervical
cancer), Bio-sensor, DNA diagnostic technology
for the early detection of cervical cancer
 “Technological Achievement Grand Award” for
cervical cancer diagnostic technology in the 2006
Hong Kong Awards
 Prenetics: Next generation DNA testing, US $ 10M
invested by Ping An Venture & run by Danny
Yeung (ex-Groupon CEO), partner with Prudential
Insurance

10. Professor Cheng Shuk Han (CityU)
 CityU SpinOff: Vitargent (International)
Biotechnology
 Venture Investor: WI Harper Group
 2014 Hong Kong Awards for Industries —
Technological Achievement Award
 2015 Grand Prix at 43rd Geneva International
Exhibition of Inventions Award
 Technology: Patented first-in-the-world
transgenic medaka and zebrafish fish embryo
toxicity (FET) test
 New global pdt safety std. detect toxin 24/48h
 Home grown Bio-testing innovation

11. Hong Kong X-Tech Start-Up Foundation
(16 July 2016)

12. Local Manufacturer From OEM to IPO
 Vincent Medical (HKSE Code: 1612, 7/’16 IPO) Medical Equipment &
Services in Dongguan, Chairman Mr. Choi Man Shing(蔡文成, 60 %)
 IPO (July 2016) $1/share, Range $0.79-1.26, Mkt Cap HK $ 520M,
revenue $ 448M, Net Profit $ 58M (‘15)
 OEM for Bayer Medical Care(87%, Inspired Medical (英仕醫療) own brand
13%) respiratory products (39%), imaging contrast media power injector
disposable products (35%), orthopaedic (16%),rehabilitation (10%)
 Disposable for deliver humidify gases to patients under ventilation/oxygen
 2nd largest exporter of respiratory and anaesthesia disposables in the PRC
 Critical successful factor: QA/QC, Certification, expand domestics (380
domestic distributors network) & overseas mkt (42 distributors),
sterilisation for Med. Device, Hi/low margin pdts, move from OEM to OBM

14. Relation of Molecular Diagnostics to Other Technologies

16. Future Biotech Trend
 More personalized, predictable, preventive
medicine (3Ps)
 Target therapies & molecular diagnostics
 Concerns: drug safety, ageing population,
bioterrorism, pandemics, healthcare cost
 Best time for Biotechs and worse for big
pharma
 Successful factors, robust product pipeline
and diversity

17. What’s driving “Personal Medicine” ?
 New technologies (system biology)
 Aging population (US, Europe, Japan, PRC)
 Managed care/insurance, little room for
“me-to” drugs due to cost, more drugs use vs
expensive hospital care
 Access to “healthy foods” i.e. health
supplements

19. Obstacles for Personalized Medicine
 Barriers between drug and device companies
 Regulatory challenges
 Bioethical questions
 Patient privacy & insurance coverage for
diagnostic tests
 Screening tumors for cancer-related gene
abnormalities
 Cancer therapy will be guided by the particular
set of genetic mutations within each patient's
tumor.(Massachusetts Institute of Technology and Harvard University, Science Feb 13, 2007)

21. Example (I) Novel Design: Plastics Dish

22. Example of Novel Design: Bio-
reactor Electronic & Mechanical

24. Example (II) Novel Design:
Original Diagnostics Unit

25. Example of Novel Design:
Renovated Diagnostics Unit

26. Example (III) Start-Up Biotech Co.

30. Example (IV): Anti-fouling Agent Market
(Boat Bottom Paint, Marine Coating)
 Apply to all vessels floating (anti-fouling agent
5% added to underwater paint)
 Microbial attach/grow to bottom of vessel
reduce speed, fuel cost, shipping time for
cargo, vessel back to wharf for service every
3-4 years
 Environmental concern: Copper not allow,
biohazard to ocean wildlife
 China gross tonnage 22,682k (‘14)

31. Example of Local Tech Transfer Anti-fouling Agent

32. PRC Ship Paint Market 2010/11

33. Estimate Fuel Consumption

34. Inhibition Effect for 3 Major Microbials

35. Is this a Drug ?

36. Example (V): Novel Med.Pdt Co.
 Canadian Co. specialize in Anti-adhesion
for post-surgical procedures
 Natural extracts from sea-weed
 FDA approved as “medical devices”
instead of drug to avoid tedious & costly
clinical trials & regulation

37. Performance-based Competitive Advantage:
Rabbit Model of Surgical Adhesions
Control instillate
Uterine horns
firmly adhered
ARCADTM Instillate
No adhesions
Uterus
Abdominal
wall
Adhesions
2

38. Injury
Inflammation
Coagulation
Resolution
Proliferation
Surgical Adhesion Normal Healing3

39. 0
4
6
8
Control
LRS
Fucoidan
Instillate
Adhesionseverityscore
*
8
10
12
14
16
18
20
2
0
1
2
3
4
Numberofadhesions
*
5
6
7
8
9
10
Control
LRS
Fucoidan
Instillate
Fucoidan Instillate™ has Compelling Efficacy and
Safety Data in Foal Model of Surgical Adhesions

40. Would you like to have this Check ?

41. Four “Smarts”
 People
 Ideas
 Money
 Alliances & partnership

42. Medical Device Successful Footprints
 License a patent
 Build a prototype
 Finish a clinical trial
 Sell the technology

43. Local Technology Transfer Consideration
1. Individual faculty’s research project
2. University Knowledge Transfer Office
3. Licensing agreement: sold off or
royalty/profit split, risk ? University
involvement ?
4. Split of interest: university,
department, research team: faculty,
research fellows, if any

44. Motto of Biotech
"There are only two kinds of biotech
companies -- those that have had
disappointments and those that will
have disappointments in the future,
the successful ones are those that
work through their disappointments''
(Love, the chief executive, Nuvelo Pharma)

45. Do you have a role in this
Biotech bandwagon ?
The Destiny is in our hands
Thank you !