Presented by Sam Dajani and Mr. Lin Yuan at the 2020 Luye Life Sciences Group Annual Meeting.
 

Sam Dajani，  CEO of Vela Diagnostics（International）

Sam Dajani：Happy New Year! Today I want to summarize the business development plan and our priorities at Vela Diagnostics, and show the layout of our entire business. First I want to talk about our disease field.

Virus detection is one of the focus areas of our diagnostic products. Our products provide end-to-end virus detection, covering the entire process from sample insertion to final report generation; and our products have been sold in the United States and Europe, covering key diseases such as HIV and hepatitis B. Presumably everyone already knows that in November 2019, we received FDA authorization to market our in vitro diagnostics test for the detection of HIV-1 genomic drug resistance mutations (DRMs).  It is worth mentioning that this next generation technology can replace the old technology to complete several tests at one time. In addition, we have also received approval in Thailand and Singapore, and we expect to obtain approval in China by 2021.

This year a tumor screening test, developed independently by our team in collaboration with a French company, has enabled the detection of a wide range of tumors, such as breast cancer and others. We expect the product will be available for sale in the U.S. and China in the second quarter of this year.

In addition, we have genetic screening tools for sale in France; we have been working closely with John Hopkins University in the United States on PCR for microbial screening; and we have also entered into partnership with GB in which we are authorized by GB to distribute 6 FDA-approved products in the U.S., from which we will receive sales revenue. The products we provide are integrated solutions that cover a variety of end-to-end services, and diverse diseases from viruses to microorganisms.

In order to maintain our competitive advantage, we will continue to improve the accuracy of our sales forecasts, strengthen inventory control, better manage cash flow, and take all other necessary initiatives. 

In terms of our competitiveness, our product sales are mainly driven by the sales of HIV products approved in the United States. Looking ahead to 2025, we will have more cancer screening and genetic screening products to enhance our revenue.

Lin Yuan，CEO of Diagnostics Business Unit (China)
 

Lin Yuan：Dear Luye colleagues, I feel very honored to be a member of the Luye Diagnostics family, the business department of Luye with the shortest operation history! Although I am not young, this business department is very young- it was only established in September in 2019.

Regarding our positioning in the entire diagnostic industry, we are increasingly exploring how to better integrate our resources to increase our own competitiveness.

Since the establishment of the Diagnosis Business Division, many colleagues have asked, “What exactly is this department doing?” Some people have heard of Vela before but don't know it well. I think diagnostics has been a fascinating industry in the past ten years. Looking back on past life experiences in this industry, the most people come into contact with is a lot of blood tests during physical examinations. My past work experience has made me feel deeply that diagnostics is a very innovative industry.

Let me share with you a past work experience. We have worked with Ping An Insurance on a project in Qingdao. Qingdao is near the sea, and local people eat a lot of seafood leading to high prevalence of rheumatism, rheumatoid arthritis, and arthritis. So they commissioned us to do a diagnostic test for rheumatoid arthritis, given the concern that rheumatoid arthritis can lead to orthopedic surgery that may eventually require joint replacement. Finally, based on big data, we determined that the prevalence of rheumatoid genes is indeed high, which is the prototype of big data three years ago.

The second example that impressed me is the AI face recognition that everyone is very familiar with. In the field of diagnosis, face recognition has been used very early, not in daily life but in using automatic recognition technology to identify cells. In pathological slices, a large database based on electron microscope findings will allow doctors to automatically identify cells. That is what pathologists do every day. Currently, many start-up companies have done very well in this field, including some Chinese start-ups that have proved to be very competitive, whose success is based on this big data.

Speaking of the positioning of Luye’s diagnostics business, we hope to integrate different technologies in the industry. We will focus on two areas: one is oncology and the other is pathogen-related diseases, as these two fields will involve many different technology platforms.

On our existing diagnostic platform is Vela, our next-generation sequencing (at gene level), and also PCR (at molecular level). In addition, our products also have strong capabilities in biological analysis, which is also the cornerstone for future big data generation. However, from the perspective of overall disease management, these technologies are not comprehensive enough. We need to focus on competitive innovation and significantly broaden our capabilities to enable a better, healthier and sustainable growth of our diagnostics business in the future.

Therefore, our strategy is to focus on tumor and pathogenic diseases using our current platform and foster more integration and synergy of related technologies. In the meantime, we must pay attention to the fastest-growing markets, including China, the United States, and Europe, which have the highest level of these technologies. We need to strengthen our competitiveness in different fields, not only from the product perspective, but also from the perspective of operation, both at the commercial and business development level. This includes how we can build our own R&D capabilities and international production capabilities. Currently we have diagnostic products production bases in Singapore and the United States, including R&D teams. In the future, we hope that we will increase not only import but also export of our products, so that our diagnostic products and diagnostic services can help more medical professionals in this field.

Finally, as a new member of the Luye family, we also hope that the diagnostic business will receive strong support from the various business units of the Group. We look forward to a prosperous 2020. Thank you all!