Interview with Dr. Jaden Zhang,
Vice President of Haohai Biological Technology
When it comes to biotech companies in China, the focus is on Haohai Biological Technology. Haohai is a hi-tech enterprise committed to providing new medical products through innovation and transformation, resource integration and large-scale production. It applies biomedical material and genetic engineering technologies to the research, development, production and sales of medical devices and pharmaceuticals. It has gradually succeeded in creating domestic production of all the relevant pharmaceutical products, and has become a leader in the field of biomedical materials. It owns a number of overseas listed companies, and its business map covers the whole world.
The company was listed on the Hong Kong Stock Exchange in 2015, and the Shanghai Stock Exchange in 2019, making it the first biomedical company listed on the “Hong Kong Stock + Science and Technology Innovation Board” in China. Dr. Zhang graduated from the Second Military Medical University with an M.D. and a post-doctoral degree in clinical medicine. He has been with Haohai Biotechnology for 10 years and specializes in the development of innovative biologics, as well as the direction of biologics research and development in the field of dermatology and the planning of biologics research and development.
What are the current core businesses of Haohai Biotechnology? What is the vision and mission?
After more than ten years of independent innovation and industrial integration, as of 2023, Haohai Biotech has completed the re-organization of biomedical materials and has achieved industry leadership in four major business areas, including ophthalmology, cosmetic and wound care, orthopedics and anti-adhesion and hemostasis.
Haohai Biotechnology aims to improve the health quality of everyone and promote the recovery of patients. It continues to focus on the four fast-developing therapeutic areas of ophthalmology, medical beauty and wound care, orthopaedics and surgery, and stresses independent research and development in improving the product line, and strengthening the services and brand name of the company. It strives to become a leading domestic company in the field of bio-medical materials, also recognised internationally.
How does Haohai Bio handle the global market? What are the major markets and customers?
The company owns a number of overseas companies such as Aaren in the US, Contamac in the UK, Bioxis in France and EndyMed, a listed company in Israel. Meanwhile, the Company has established an integrated R&D system covering in China, the US, the UK, France and Israel, and actively absorbs overseas advanced technology and management experience to form an interactive R&D layout at home and abroad.
EndyMed is mainly engaged in the R&D, production and sales of medical and household radiofrequency beauty equipment, and its EndyMed Pro and Pure professional radiofrequency cosmetology instrument series is sold in more than 50 countries and regions around the world.
The French hyaluronic acid subsidiary, Bioxis, sells Cytosial hyaluronic acid products in many markets. Radiophotonics, a subsidiary, is mainly engaged in laser chips and instruments, and has obtained medical device certifications of CFDA, FDA, and CE in the European Union for its laser skin beautification equipment and sells them in many markets around the world.
What are the important innovations and breakthroughs in biotechnology related to “health”?
By the end of 2023, the company and its subsidiaries had 406 patents, including 108 invention patents. Haohai Biotech always aims to improve people’s health quality and promote patient recovery, and focuses on the four fast-growing therapeutic areas of ophthalmology, medical aesthetics and wound care, orthopaedics, and surgery, emphasizing scientific research innovation and technological breakthroughs.
We utilize genetic engineering technology to develop and produce topical human epidermal growth factor (hEGF) “Kanghexin”, which is the only epidermal growth factor product in China with identical amino acid number, sequence and spatial structure as the natural EGF in the human body, and is also the first human epidermal growth factor product to obtain international registration, which has significant potential in aesthetic and micro-plastic aftercare. It is also the first human epidermal growth factor product to be registered globally, and has remarkable efficacy and broad market prospects.
The company is also focusing on the development of a collagen product line, and the establishment of animal source protein extraction technology as the core technology platform. Through technological innovation, Haohai will give better play to the efficacy of collagen materials in hydration and moisturizing, anti-wrinkle, whitening, repairing and filling, etc., so as to form complementary advantages with the company’s existing hyaluronic acid, EGF, and radiofrequency cosmetic equipment products, and to further consolidate and improve the company’s competitive advantages.
Facing global competitors, what competitive advantages does Haohai Bio have?
The first one is definitely a technical advantage. Since its establishment, the company has constantly expanded its R&D strength and established technology platforms for artificial lens and optic materials and many other elements. The technical level of the main products are all industry-leading.
In the key layout of the medical aesthetic field, the company has mastered the “chicken crown extraction method” and “bacterial fermentation method”, two international market mainstream production processes of medical sodium hyaluronate raw materials, as well as single-phase cross-linking, low-temperature secondary cross-linking, linear cross-linking and organic cross-linking processes. The company’s topical human epidermal growth factor product won a National Prize for Science and Technology Progress – it is the first registered topical human epidermal growth factor product in the world.
Meanwhile, the company has two national R&D platforms, namely, the national enterprise technology center and the national postdoctoral research station, as well as four provincial and ministerial-level technology and R&D transformation platforms and a Shanghai academician expert workstation, and has established an integrated R&D system in China, the U.S., the U.K., France and Israel.
Secondly, there is the advantage of industry chain integration. The company has basically completed the layout of “raw materials + R&D + manufacturing + sales” in four major therapeutic areas, namely, ophthalmology, medical beauty and wound care, orthopedics, and surgical anti-adhesion and hemostasis, and has realized the integration of the industry chain from upstream raw materials to product research and development, production and downstream marketing and sales. With the advantage of industry chain integration, the company reduces production costs and ensures the stability of raw material supply and product quality; on the other hand, penetration of the downstream of the industry chain also facilitates the company to better understand the end-market demand and trends, so as to carry out integrated R&D of products and even upstream raw materials, and further enhance the market competitiveness of the company’s products.
How do you see the current trend of biotechnology industry? What role will Haohai Biotechnology play in this trend?
Haohai Biotechnology is committed to the research and exploration of “integrated aesthetics”, combining its hyaluronic acid filler products, photoelectric devices and biological agents to provide users with full-cycle skin health care programs. By combining with biological agents, the photoelectric device program can increase efficiency, promote repair and maintain the effects of treatment to truly provide a full-cycle skin health care program. The combined application of hyaluronic acid filler and photoelectric device can also give users a more perfect anti-aging and shaping program.
In addition, Hao Hai Biotechnology is also linking the three major scenarios of medical clinic, life beauty and home to cover all the life scenarios of users, providing comprehensive skin maintenance, anti-aging and shaping products and services, and is committed to solving the skin problems and needs of customers in a safe, effective and timely manner.
What are the initiatives in corporate social responsibility? How to balance the relationship between corporate development and social responsibility?
The prospect and social contribution of biotechnology is extremely broad and far-reaching. Its development has not only revolutionized the fields of industry, agriculture and medicine, but also contributed greatly to socio-economic development and improved the quality of human life. With the progress of science and technology and the strengthening of international cooperation, future prospects are very broad.
Biotechnology is a highly globalized field, and international cooperation and exchanges are crucial to promoting innovation and industrial development. Haohai participates in international biotechnology cooperation projects, strengthens cooperation with top international research institutes and enterprises, and jointly carries out research and development activities and various talent training programs. While realizing high-quality and steady corporate development, the company actively fulfills its social responsibilities, including the protection of the rights and interests of shareholders and creditors, as well as employees, suppliers, customers and consumers. Also crucial are the protection of product safety and security, public relations, social public welfare, as well as the protection of the environment.