Shineco, Inc. (NASDAQ: SISI), a producer and distributor of Chinese herbal medicines, organic agricultural and other biotech products, today announced to sign the cooperation agreement with Shandong Weifang Jianyi Medical Devices Co., Ltd. (“SWJM”), a leading Chinese medical devices company, to jointly produce and sell nuclear medicine imaging devices, including PET, PET-CT, and PET-MRI, and comprehensively improve the quality of imaging examination and diagnosis and treatment of specialized hospitals for tumor. Both parties will produce 100 PET tumor precision imaging inspection devices within 2022, and it is expected to achieve sales revenue of RMB750 million (approximately $118 million).
Pursuant to the Agreement, the Company exclusively enjoys the right to use all patents, non-patented technologies and registration certificates of SWJM’s PET, PET-CT, PET-MRI and other nuclear medicine imaging devices. Relying on 100 specialized hospitals for tumor in China, both parties agree to focus on the strategic plan of the Company’s construction of a digital tumor diagnosis and treatment platform, jointly produce and sell nuclear medicine imaging devices, effectively control costs, and introduce devices to the basic level of the Company’s tumor classification diagnosis and treatment network.
PET, PET-CT, and PET-MRI have huge clinical and scientific research value and strong market demand. However, the Chinese market has been monopolized by companies such as GE and Philips, due to the limited core technology and engineering capabilities of domestic high-end medical imaging devices. There are tremendous clinical needs in the field of domestic high-end devices that have not been met yet.
As a company specializing in the research and development (“R&D”) and production of nuclear medicine imaging, radiotherapy, and other medical devices, SWJM has been committed to promoting the localization of a new generation of high-end medical imaging devices for years. SWJM achieved an outstanding reputation in academics, medical practice, and hospital management. The R&D team of SWJM has successfully introduced one of the first PET in China by visiting the well-known hospitals and learning the advanced technology worldwide, which has laid a solid foundation for the localization of high-end medical devices and greatly reduced production costs. In addition, SWJM’s R&D team has obtained a number of patents in the field of tumor treatment devices by working with domestic and international experts, which allow the devices to fill the gap in the international market.
The PET devices jointly produced by the Company and SWJM are representatives of cutting-edge technologies in the field of high-end medical imaging diagnostic devices. The PET devices will carry out multi-modal and multi-parameter imaging and have leading advantages of safety, accuracy, efficiency, and convenience, leading to the innovation and development of tumor imaging diagnosis.
Ms. Jennifer Zhan, CEO of Shineco, commented, “We are very pleased to have the right partner with their superior technologies, which enable us to take an important step in our strategic business plan. This cooperation will further expand the Company’s business development and service model in the field of high-end medical imaging devices, improving the quality of clinical diagnosis and treatment of the specialized hospitals for tumors and reducing medical expenses for patients, given by SWJM’s R&D capabilities. We believe that our cooperation will also create a significant impact by improving domestic high-end medical devices, breaking through the bottleneck of core technologies, and improving the localization of high-end medical devices. Looking forward, to partner with SWJM, we will deliver the best medical imaging devices to specialized hospitals for tumors in China, which will benefit both hospitals and patients.”