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    Home > Active Ingredient News > Drugs Articles > Raising over 2 billion in 6 years and holding 940 million in revenue, medical technology company Zero Krypton wants to be listed on NASDAQ

    Raising over 2 billion in 6 years and holding 940 million in revenue, medical technology company Zero Krypton wants to be listed on NASDAQ

    • Last Update: 2021-06-28
    • Source: Internet
    • Author: User
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    On June 14th, Eastern Time, the medical technology company Zerokrypton Technology officially submitted a prospectus and plans to go public on the Nasdaq
    .
    After 6 years of hard work, Zero Krypton finally decided to enter the next stage

    .

    As one of the first batch of start-up companies to step into the medical big data, LingKr has received six rounds of financing and received more than 2 billion yuan in funds
    .
    Before the IPO, the latest round of funding came from the Internet medical giant Ali Health.
    The two parties tried to jointly build a full-disease cycle service platform for Chinese cancer patients and actively explore innovative service models for online cancer specialist drugs

    .

    So far, Temasek holds 11.
    7% of the shares of ZeroKrypton Technology and is the largest institutional investor; NEA Investment, Broadband Capital, Alibaba Health and MBK Partners hold 10.
    2%, 9.
    2%, 8.
    4% and 6.
    3% of the shares respectively

    .

    The 6-year growth of zero krypton can almost reflect the development of the medical big data industry
    .
    From the initial data standard formulation and data cleaning; to the mid-term data-based auxiliary drug development and auxiliary imaging diagnosis; to the full-cycle tumor diagnosis and treatment services in the past two years, ZeroKr has gradually built LinkCare, LinkData, and LinkData with data as the core.
    Three business modules of LinkSolutions

    .
    The entire business system runs through data collection to data applications, B-side empowerment to C-side services

    .

    Among them, LinkData, as an AI data governance system independently developed by Zerokrypton Technology, through the analysis of various medical data, on the one hand, it can achieve more accurate and personalized patient care on the LinkCare platform, and on the other hand, it can help life science companies improve drugs.
    R&D and commercialization efficiency, also known as LinkSolutions

    .
    LinkData is like a data center, linking up the businesses of LinkCare and LinkSolutions

    .



    Zero Krypton Technology Business Structure

    Zerokrypton CEO Zhang Tianze once said: “Medical and finance are very similar, and every decision is based on data
    .
    Especially after Western medicine is divided into disciplines, medicine has been completely driven by data

    .
    ” Now on the eve of listing, the past is hidden on the sea.
    The part of the glacier below is revealed

    .
    Under the financial blessing, where has the zero-krypton medical big data gone?

    Nearly 1 billion years of revenue, where does the zero-krypton revenue come from

    Looking back at the prospectus data, the operating income of krypton in 2020 was 942 million yuan, an increase of 88.
    70% year-on-year compared with the 499 million yuan operating income in 2019, which nearly doubled

    .
    The same increase is the cost of revenue.
    After business expansion, the cost of revenue will increase to 864 million yuan in 2020; an increase of 97.
    26%

    .



    ZeroKr Technology Financial Statement

    Observing the two-year revenue and cost data, the pace of change of the two is almost exactly the same, and the gross profit decreases to a certain extent with the increase in the cost of revenue
    .
    The core element leading to change comes from the "LinkCare" business

    .
    The revenue of this business rose from 376 million yuan in 2019 to 806 million yuan in 2020; the cost also rose from 357 million yuan in 2019 to 776 million yuan in 2020

    .

    At present, the operating profit and net profit of zero krypton are still negative
    .
    In 2019 and 2020, the net losses of LingKr Technology were 434 million yuan and 489 million yuan, respectively, and the adjusted net losses (excluding non-cash expenses, employee equity incentives, changes in the fair value of financial liabilities and non-cash interest, etc.
    ) were 389 million yuan, respectively Yuan and 233 million yuan, accounting for 78% and 25% of revenue, respectively, and the proportion of losses has been significantly narrowed;

    In the first quarter of 2021 and the same period in 2020, the net loss will be 138 million yuan and 64 million yuan, and the adjusted net loss (excluding non-cash expenses, employee equity incentives, changes in the fair value of financial liabilities and non-cash interest, etc.
    ) will be 80 million yuan, respectively And 56 million yuan, accounting for 35% and 36% of revenue, respectively, and the loss ratio was basically the same

    .

    This shows to a certain extent that the zero-krypton business model is feasible in large-scale expansion
    .
    If this trend can be maintained and further expanded in volume, zero krypton has the opportunity to turn losses into profits in 2021

    .

    Further analysis, behind the surge in revenue is the expansion of the market share of zero krypton
    .
    Data shows that the number of paying patients on the LinkCare platform has increased from about 37,300 in 2019 to about 54900 in 2020, and in the first quarter of 2021, it has increased from 14,200 in the same period in 2020 to 20,100

    .



    Zero Krypton Technology Business Performance

    LinkCare service for patients

    "LinkCare" is a digital life-cycle care platform centered on patient benefits.
    The service covers patients from the discovery of the lesion, to the diagnosis/consultation and treatment in the hospital, to the out-of-hospital consultation/consultation, drug purchase/refilling, and medicine.
    Infusion/distribution, patient management/education, follow-up, and even medical insurance/commercial insurance payment cover the closed-loop service of the entire cycle of disease diagnosis and treatment.
    By providing various online and offline resource connections, it provides patients with accurate and personalized diagnosis and treatment services

    .
    Compared with traditional chronic disease management services, the zero-krypton solution is not simply to improve patient compliance with medication and to ensure the patient's medication dosage, but to allow patients to actively participate in management to help patients control disease symptoms and slow down disease progression.
    Improve the quality of life

    .

    The improvement in patient survival benefits brought by LinkCare is supported by clinical evidence
    .
    In May 2021, the first multi-center, observational, large sample size of 10,000 cases in China led by Professor Sun Daqiang from the Department of Thoracic Surgery of Tianjin Chest Hospital and Professor Chen Pingyan from the Hainan Real World Data Institute and the Department of Biostatistics of Southern Medical University The long-term follow-up results of patients with stage Ⅰ~ⅢA non-small cell lung cancer (NSCLC) after surgery showed that the active participation in the follow-up of patients with stage Ⅰ~ⅢA NSCLC increased their survival rate by 81.
    8%, which was not only higher than the passive follow-up of 74.
    2%, but also for ⅢA The survival benefit of patients at stage is more obvious

    .

    The active follow-up design in the study is based on the patient service logic of zero-krypton for patient review, drug use, adverse reaction management, psychological comfort and care, and other digital therapies.
    It relies on the tumor big data platform and the empowerment of artificial intelligence, through continuous accumulation of evidence and Clinical research, and then translated into the latest results of clinical evidence

    .

    LinkSolutions for pharmaceutical companies

    LinkSolutions, another important business segment of Zerokrypton, is divided into real world research services (RWS), clinical research recruitment and data insights, etc.
    , aimed at accelerating the launch of drugs and the commercial promotion of drugs after they are launched

    .
    According to Frost & Sullivan data, in 2020, zero krypton accounted for 10% of the Chinese market, ranking first among domestic companies (the second-ranked company’s share was 6.
    5%), and the number of active life science company customers that year was 176 Home

    .

    As of March 31, 2021, LingKr Technology has provided services for 85% of the global TOP20 life science companies, 48% of the Hong Kong-listed life technology companies, and 9 of the TOP10 pharmaceutical companies in China; it has provided services to more than 310 major researchers Support, covering 57% of the total number of new tumor indications applied for clinical trials in China from 2017 to March 31, 2021
    .

    In 2019 and 2020, the revenue of LinkSolutions was 115 million yuan and 120 million yuan, respectively.
    Affected by the epidemic, LinkSolutions revenue increased by only 4%.
    In the first quarter of 2021, LinkSolutions revenue increased from 18.
    49 million yuan in the same period in 2020 to 35.
    81 million yuan, an increase of 94% year-on-year

    .

    Industry constraints and the breakthrough of zero krypton

    Looking at the financial report data alone, 2020's Zero Krypton has performed well in the service-side business, such as chronic disease management, DTP pharmacy and other businesses, which have been greatly improved
    .
    This improvement is not only reflected in the expansion of the market and the number of users, but also in the depth of tumor management services

    .
    Compared with competitors, the LinkCare solution of Zero Krypton runs through the stages of cancer disease screening, diagnosis, treatment, follow-up, and medicine purchase, and can provide patients with full-cycle cancer management services

    .
    However, there are many players in the direction of chronic disease management.
    Compared with the entire market, ZeroKr performs well, but it needs to be improved

    .

    In contrast, the performance of technological services such as AI, big data-based auxiliary diagnosis, and drug clinical-related services may seem to be slightly weak, but in fact they have achieved relatively good results
    .

    Through a simple calculation of the prospectus data, the total revenue of zero-krypton technology services in 2020 is about 130 million
    .
    Currently, AI and big data medical companies with revenues of more than 100 million yuan are rare, and the revenue of zero billion yuan is already at the top of the track

    .

    Three factors restrict the development of the AI ​​and big data track, and also inhibit the revenue of zero-krypton related businesses: First, the AI ​​and big data industry is still an innovation track, and the entire market is not fully mature; second, the hospital Major purchasers such as pharmaceutical companies and pharmaceutical companies have not fully accepted the above-mentioned innovative technologies; thirdly, standardized data and innovative technology review and approval procedures still need to be improved, and the relevant value of RWE needs to be explored
    .

    Then, as the application of AI and big data further matures, the market's acceptance of confidence technology continues to increase, and there may be room for improvement in the revenue of krypton in AI and big data
    .

    On the one hand, as Zerokrypton Technology processes more real-world data through LinkData, its underlying AI engine (through iterative upgrades) self-enhanced and becomes more intelligent over time, which in turn promotes the continuous improvement and new >
    .

    On the other hand, as real-world data builds more patient cohorts through LinkData, ZeroKrypton Technology can develop more new cases for LinkSolutions; and as more and more life science company customers use LinkSolutions for clinical research and For commercial applications, ZeroKr Technology can develop more powerful data management functions for LinkData and provide services for more patients and doctors on the LinkCare platform
    .

    Find the next growth pole

    Based on the above analysis and planning for the next step, focusing on technology and focusing on services, which one is the better choice for Zero Krypton? Perhaps it is both
    .

    In the service direction, Zerokrypton built the Patient Care Center (PCC) model based on DTP logic
    .
    PCC integrates the functions of offline clinics, pharmacies and infusion centers to establish a comprehensive drug delivery network covering the whole country, providing diversified services such as pharmaceutical services, special drug infusion, cold chain distribution, expert outpatient clinics, patient care, and drug gift services.
    Services to meet the all-round needs of patients outside the hospital

    .

    On the one hand, in an environment where medical resources are scarce, hospitals usually focus on tumor treatment, and neglect to follow up and help patients after surgery.
    The intervention of PCC makes up for the problems in the public medical service system.
    With the missing link, patients can quickly obtain information through the platform, consult on abnormal conditions and purchase drugs in a timely manner, which will effectively improve the cure rate of cancer patients

    .
    On the other hand, by building such a service system, Zerokrypton can build a stable drug network and provide patients with professional drug services and drug delivery services, thereby finding a reasonable commercialization path for chronic disease management services

    .

    Currently, ZeroKr has 34 patient care centers in 28 provinces across the country (as of March 31, 2021).
    These patient care centers provide patients with innovative treatment solutions and drug services, and at the same time, they can also obtain informed consent from patients Under the circumstances, complete patient data and results are collected and become part of LinkCare and LinkData data

    .
    LinkData, as an AI data governance system independently developed by Zerokrypton Technology, through the analysis of various medical data, on the one hand, it can achieve more accurate and personalized patient care on the LinkCare platform, and on the other hand, it can help life science companies improve drug research and development.
    And commercialization efficiency, which is LinkSolutions

    .

    Based on this logic, if we can continue to expand the LinkCare business, accelerate the full-cycle management coverage of oncology, and seek cost control in the context of high market share, zero krypton will occupy a considerable share of the US$29.
    8 billion Chinese oncology drug market

    .



    China's oncology drug market size

    Medical big data is also facing rapid development
    .
    The "National Clinical Medical Research Center Five-Year (2017-2021) Development Plan" and the "Notice of the State Council on Issuing the Action Plan for Promoting the Development of Big Data" point out the direction for the development of big data from the perspective of overall development and industry planning

    .
    During the COVID-19 period, China announced that it would invest about 300 billion yuan in the healthcare industry in accordance with the "new infrastructure" strategy in the next five years, of which about 20 billion yuan will be used for big data-driven solutions

    .

    Real-world learning and research and commercial health insurance risk control are both concrete applications of medical big data.
    The former can effectively accelerate the launch of drugs in today's increasingly competitive drug research and development, while the latter can share the current basic medical insurance pressure

    .
    According to Frost Sullivan data, the real-world learning and research market in 2020 will be US$500 million, with a penetration rate of 3.
    4%; the commercial health insurance risk control market will be US$3.
    1 billion, with a penetration rate of 6.
    8%

    .
    With the passage of time, the penetration rate of new technologies will continue to increase.
    Under this trend, the two major markets that Zero Krypton faces both have great commercial potential

    .

    Another important factor that cannot be ignored is the tumor track targeted by Zero Krypton
    .
    As a technology company in the vertical oncology field, Zerokrypton faces a vast unmet demand market

    .
    According to statistics from the Health Statistics Yearbook, the number of cancers in China in 2019 was 4.
    4 million, a year-on-year increase of 2.
    6%

    .
    Not only is the number of cancer patients continuously increasing, but there is also a large gap in the supply of cancer medical services in China

    .

    The burden of cancer patients is heavier.
    Among the top 10 diseases with per capita hospitalization costs, cancer occupies 6 types

    .
    Behind such a high growth rate, there is a huge market opportunity for cancer treatment, and China's cancer medical service and pharmaceutical market has entered a period of rapid growth.
    There is a huge market space for cancer innovative drugs, medical services and new technology treatments

    .

    A more imaginative and easier to achieve exploration direction lies in the horizontal replication of the tumor field.
    Simply put, if the zero-krypton LinkCare can be developed to the general practice full-cycle management, the LinkSolutions can be developed in the direction of cardiovascular and cerebrovascular, diabetes, etc.
    , and zero-krypton There will be opportunities to create more possibilities

    .

    The advantages and future of zero krypton

    It is worth noting that due to the impact of the epidemic and the improvement of the efficiency of infrastructure investment research, the research and development costs of zero krypton in 2020 have declined to a certain extent, and the corresponding figure has dropped from 181 million to 87 million
    .
    Nowadays, after gaining market share, Zerokrypton plans to invest funds in research and development again, and its Internet->
    .
    The R&D investment in the first quarter of 2021 and the same period in 2020 will both be approximately 23 million yuan, and the R&D investment has maintained a stable level

    .



    Zero Krypton Technology's operating costs

    At present, there are more than 330 cooperative hospitals with zero krypton (including 191 tertiary A hospitals), and the total number of patients treated has reached 3.
    5 million.
    More than 200 medical institutions have joined the RWS plan, and the coverage includes all the top 30 Cancer species

    .

    In addition, Zero Krypton also independently researches and develops the world’s advanced medical big data platform; establishes China’s largest cancer patient data cohort covering nationwide hospitals and medical and health systems; and creates a unique system based on the effective identification of each cancer patient Personalized solutions and precise management, forming a closed-loop service covering the entire disease cycle
    .
    The company's R&D capabilities and commercialization capabilities are reflected

    .

    However, the general low revenue status of technology medical companies is not a single R&D problem or a commercialization problem
    .
    Only when the scene is identified and a solution with real value is brought to it, the support of policies and the accumulation of time are needed to occupy a place in the medical treatment

    .

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