Genetron Health Announces Exclusive Strategic Partnership with Sino Biopharm Subsidiary for HCCscreen in China

Genetron Holdings Limited (“Genetron Health” or the “Company”) (Nasdaq: GTH), a leading precision oncology company in China that specializes in offering molecular profiling tests, early cancer screening products and companion diagnostics development, and Chia Tai Tianqing Pharmaceutical Group Co., Ltd. (“CTTQ”), a subsidiary of Sino Biopharmaceutical Limited (“Sino Biopharm”) (HKEX: 1177), today announced an exclusive strategic partnership agreement for HCCscreen, Genetron Health’s blood-based early screening test for hepatocellular carcinoma (“HCC”) in China. This partnership targets the hospital market in China, with a focus on combatting liver disease, and marks Genetron Health’s third key commercialization initiative of HCCscreen in the country, complementing its existing sales and marketing strategies through public health programs and medical examination centers.

Under the agreement, the companies will work together exclusively to co-market and co-promote HCCscreen in the hospital market, covering designated territories in China. The parties intend to target high-risk individuals for HCC, which include HBV-positive carriers, as well as other liver disease patients. CTTQ brings an experienced sales force and valuable hospital relationships to the partnership, while Genetron Health provides manufacturing and laboratory operations for its innovative product, HCCscreen, along with its direct-to-consumer marketing expertise. Genetron Health will pay CTTQ a promotional fee based on a percentage of revenues generated from the collaboration. Contingent on certain sales and other requirements, the exclusivity period is expected to last three years. As a result of the agreement, Genetron Health expects HCCscreen revenues to further accelerate in China.

Sino Biopharm is one of the leading biopharmaceutical companies in China, with therapeutic areas spanning liver disease, oncology, orthopedics, infectious, respiratory, and cardiovascular and cerebrovascular diseases. Sino Biopharm recorded sales exceeding RMB 24 billion in 2019, of which liver drugs accounted for almost a quarter. CTTQ is Sino Biopharm’s largest subsidiary, which focuses primarily on liver disease and oncology drugs R&D and manufacturing. In China, CTTQ had over 35% market share based on total hepatitis antiviral drug sales in 2018, according to IMS. In addition, CTTQ has a sales team of over 7,000 representatives and a network of over 2,000 general and liver disease-focused hospitals. Designated as a national key high-tech enterprise, CTTQ spends around 10-12% of revenues annually on research and development.