On January 12, 2022, the Public Security Bureau of Xuchang City, Henan Province notified that someone had committed an act that caused the spread of new coronary pneumonia or had a serious risk of spreading, and the police filed a case for investigation and took coercive measures.
The suspect involved is Zhang Moudong, the regional head of a wholly-owned subsidiary of KingMed Medical. Jinyu Medical is a listed company with a market value of more than 40 billion in A shares.As of the close of the day, Jinyu Medical fell more than 5% to close at 91 yuan.
Jinyu Medical issued a statement at noon that day, in response to the suspected violation of the law by an employee of Jinyu in Zhengzhou, Jinyu Medical is investigating the specific situation.
On the afternoon of January 12, Caijing·Great Health called the relevant department of KingMed Medical, and the response was that the relevant information was being sorted out. He was only informed of the incident after seeing the police report in the morning.
An investor in the testing field understands that after the police report, the Henan provincial authority had also communicated with other third-party medical laboratories participating in the cooperation. In addition to making requests, it also mentioned continuing to maintain cooperation.
From the beginning of the new crown epidemic in 2019, KingMed Medical was one of the first third-party laboratories to participate in the new crown nucleic acid detection. The financial report shows thatAs of September 30, 2021, the company’s cumulative testing volume exceeded 170 million.Haitong Securities estimates,In 2020, the revenue of the new crown nucleic acid detection industry of KingMed Medical will be more than 2.3 billion yuan, and the net profit will be more than 700 million yuan.
However, it is such a company that has tested hundreds of millions of people and made billions of dollars, and it has to “roll over” in the most familiar field. After learning of this incident, several heads of third-party medical laboratories (ICL) exclaimed, “I didn’t expect it.”
not an isolated case
The above-mentioned police report did not disclose the specific illegal details of the person in charge, such as what kind of dangerous behavior the person in charge carried out that caused the spread of the virus. The current progress is thatOn January 10, the Public Security Bureau of Yuzhou City, Henan Province filed a case against Zhang Moudong for suspected criminal offense and took coercive measures. The case is currently being further processed.
According to the noon statement of Jinyu Medical, on January 2, Zhengzhou Jinyu received a notice from the health department of Yuzhou City, a subsidiary of Xuchang City, Henan Province, to participate in the epidemic prevention and control screening in Yuzhou City. Afterwards, the local area personnel of Zhengzhou Jinyu immediately went to work, and dispatched relevant technical personnel and large quantities of materials from Zhengzhou to participate in the epidemic prevention and control screening in Yuzhou.
After seeing the news, Wang Haijiao, executive partner of Gotega Investment, immediately contacted the relevant person in charge of the third-party medical laboratory he had invested in.“I have been reminded again and again that in any case, the quality of inspection needs to be prioritized, and don’t make mistakes while busy.”
This Golden Mile medical incident is not an isolated case. Prior to this, there have also been cases in Beijing, Hebei and other places where testing institutions were suspected of violating the Law on the Prevention and Control of Infectious Diseases, mostly forgery of test results.
On January 17, 2021, a case was reported at a press conference on the prevention and control of the new crown epidemic in Xingtai City. Longyao County commissioned Jinan Huaxi Medical Laboratory Co., Ltd. to participate in the second round of nucleic acid testing due to its limited testing capacity, and tested more than 310,000 people. When the samples have not been tested and the test results are unknown, Zhai Mou, the person in charge of the company’s collection point, falsely reported to the county health and health bureau that all the samples submitted for testing were negative.
After the incident,The company involved has been suspended from its testing business, and Zhai Moumou has been detained by the police on suspicion of endangering public safety by dangerous methods.The county’s third round of national nucleic acid samples were all tested by public medical institutions and the test results were issued.
This time Henan Province is one of the focuses of the current round of the epidemic in China, and Yuzhou City is one of the areas with more severe epidemics. According to the case reported on January 5, among the 64 new local patients in Henan Province, 50 were concentrated in Yuzhou City.
As of January 10, Yuzhou has conducted seven rounds of nucleic acid testing for all employees, and nucleic acid sampling has reached 595,000 people.
When local large-scale nucleic acid testing is carried out, if medical institutions are insufficiently staffed, a third-party medical laboratory will be entrusted to participate.
Zhengzhou Jinyu Medical, where the suspect is located, is an early subsidiary of Jinyu Medical and the first third-party inspection institution approved in Henan. It has been established in Henan for 14 years and has been awarded the “High-tech Enterprise Certificate” issued by the Department of Finance and Henan Provincial Taxation Bureau.
According to the announcement of Jinyu Medical, the company involved, Zhengzhou Jinyu, is the company’s central laboratory at the provincial level in Central China. The laboratory layout of KingMed Medical is divided into headquarters-level, provincial-level regional centers, provincial-level and regional-level laboratories. Among them, the headquarters-level laboratory is responsible for transmitting medical testing technology to laboratories at all levels in turn.
Official information shows that KingMed has 37 service outlets in Henan Province, covering all counties and districts in 18 cities and counties in the province. Therefore, it is not surprising to participate in the nucleic acid test in Yuzhou.
“From last year, most of the revenue of the entire nucleic acid testing company relies on large-scale nucleic acid screening organized by the government in large cities with tens of millions of people.”The person in charge of a third-party medical laboratory in a city once told Caijing·Big Health.
This kind of nucleic acid detection often requires tens of millions, or even hundreds of millions of kits, and each company does not need to compete for business, and everyone can “eat enough”. However, it is still dominated by large third-party medical laboratories with outstanding detection scale and capabilities.
Wang Haijiao believes that this incident has sounded the alarm for the entire testing industry, “the trust accumulated before is not easy to come by.” In any case, testing institutions, whether public or private, need to talk about expanding service capabilities while ensuring quality.
As mentioned in the 2020 annual report of KingMed Medicine, it has successively carried out nucleic acid tests for COVID-19 in 30 provinces (urban areas) including Hubei, Guangdong, Jilin, and Beijing, as well as the special administrative regions of Hong Kong and Macau, with a cumulative test volume of more than 32 million, accounting for about 32 million cases. During the same period, the country’s overall nucleic acid testing volume was one-tenth, making it the single institution with the highest nucleic acid testing volume in the world.
Whether other businesses of the Zhengzhou Jinyu Medical Company involved are still in progress, and whether the company will carry out corresponding rectification and other issues, “Finance and Health” has not received a response from Jinyu Medical.
Golden Mile Medical has a good relationship
“Golden Miles has been very proud in the past two years, with all kinds of benefits.” An ICL person in charge said.
As a first-mover advantage, KingMed Medical has been involved in medical testing outsourcing services since the beginning of this century. This is also not unrelated to the medical background of its founder Jinyu Medical Chairman and CEO Liang Yaoming. Liang Yaoming worked in Guangzhou Medical College as a cadre of the Academic Affairs Office, the Scientific Research Office and the director of the Science and Technology Experiment Factory of Guangzhou Medical College, and later established Jinyu Medical.
Before the official name of Jinyu Medical in 2003, it was originally a school-run enterprise of Guangzhou Medical College (the predecessor of Guangzhou Medical University). According to the official website of Guangzhou Medical University, from 1992 to 2002, Zhong Nanshan, an academician of the Chinese Academy of Engineering, was the president of the academy.
KingMed became one of the earliest third-party medical testing laboratories established in China and was listed on the Shanghai Stock Exchange in 2017.
KingMed Medical has always maintained a good relationship with top hospitals and doctors. The Golden Mile Medical Academic Committee established by it is chaired by Zhong Nanshan, as well as Professor Lu Yuming of the Chinese University of Hong Kong and others.
On December 18, 2021, at the 2021 Annual Meeting of the Golden Mile Medical Academic Committee, Zhong Nanshan mentioned many views on the Omicron variant.
KingMed’s business mainly focuses on third-party medical testing and pathological diagnosis. Third-party medical testing is that the hospital entrusts the specimens of some testing items to a third-party independent medical laboratory to test the samples and issue inspection and inspection reports.
Routine inspection hospitals can operate autonomously, but if more complex experimental projects are involved, or the sample size is small, considering the cost factor, the hospital will outsource to ICL.To put it simply, most of them are testing business that the hospital does not want to do or cannot do.
According to a research report by Haitong Securities,Compared with medical institutions, ICL will have advantages in testing cost and quality.
The department of a gastroenterologist in a tertiary hospital in a city in central China entrusted the ICL with tests for hepatitis B and C virus quantification, inflammatory bowel disease, and tumor markers. “The machine is very expensive, but there are very few people in the experiment, so the cost is naturally high”, so some unconventional inspection items will be centralized and unified to the ICL for inspection.
The former National Health and Family Planning Commission Health Development Research Center calculated based on 2016,From 2016 to 2020, the inspection costs that can be saved by third-party medical inspection institutions are 10.4 billion yuan, 13.7 billion yuan, 17.6 billion yuan, 22.1 billion yuan, and 27.4 billion yuan.
At present, KingMed has a certain scale advantage in terms of the number of testable items, the number of cooperative medical institutions, and cost and quality management. The announcement shows that the total number of items that can be detected by KingMed Medicine has exceeded 2,800, mainly in blood diseases, infectious diseases, genetic diseases, kidney diseases and other items.
Has violated regulations for prenatal non-invasive genetic testing
About 70% of the ICL market in China is in the hands of the top four companies. According to the analysis of Haitong Securities, KingMed has a 34% market share.
At present, there are more than 1,000 third-party medical laboratories in China. An analyst said that it has already occupied a position, it is difficult to be squeezed out, and the cooperation can continue in the future.
The development direction of third-party medical laboratories is high-end special inspection projects and some unconventional inspection projects. This is also the direction of Jinyu Medical’s efforts. The announcement shows,In 2019, its special inspection accounted for more than 46% of its operating income, and its main segments were genomics, pathological diagnosis and mass spectrometry.
Special inspection refers to the service items represented by molecular testing and diagnosis outside the catalogue, which are more personalized, need to combine a variety of inspection techniques, and have higher requirements for inspection equipment, reagents, and inspection personnel capabilities.
In the drastic progress, Golden Mile Medical has violated regulations to carry out prenatal non-invasive genetic testing.
Another subsidiary of Jinyu Medical, Kunming Jinyu Medical Laboratory Co., Ltd., cooperated with some hospitals in 2016 to carry out “prenatal non-invasive genetic testing” business. At this time, it has not obtained the qualification, which constitutes a violation. Therefore, the health and health department of Yunnan Province instructed the Lincang Municipal Health and Family Planning Commission and the Kunming Municipal Health and Family Planning Commission to deal with Lincang People’s Hospital and Kunming Jinyu Medical Laboratory Co., Ltd. .
The person in charge of the above-mentioned ICL said that after this incident, perhaps many places that have cooperated with each other will sort out the experimental records and documents in more detail.
It is difficult to judge the long-term impact of this new crown testing incident on Jinyu Medical. “It boils down to a trust issue.” The above-mentioned analysts believe.Return to Sohu, see more
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