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,Bioalpha Holdings Bhd Managing Director, William Hon (left) looking at misai kucing herbs at the Desaru herbal park, Kota Tinggi.

BIOALPHA Holdings Bhd’s big move into the China market amidst the ongoing Covid-19 pandemic is noteworthy.

Despite the worldwide lockdown restrictions led by the pandemic, the integrated health supplement company took bold steps in expanding its footprint in China’s health supplements market.

In its latest joint venture with Suzhou Medicalsystem Technology Co Ltd (MEDIC) for the commercialisation of Biolapha’s proprietary herbal formulations and products in China, the company will roll out five products in the country by mid-2022, says William Hon, the managing director of Bioalpha Holdings Bhd.

“This partnership will allow us to kick-start five of our products in the next six months across 32 provinces in China.

“We would be able to capitalise on MEDIC’s regional expertise in China as it is well-known across many hospitals within the country,” he adds.

The five products will comprise of two anti-ageing products, longevity supplement, a healthcare product for type two diabetes as well as a supplement for those undergoing hormone replacement therapy.

“Our partner, MEDIC is confident that our products are suitable for China’s market and will do well there.

“MEDIC’s access and network to all major hospitals would allow our products to be recognised and recommended by all professionals and will give us a space in major hospitals to promote our products,” he explains.

Listed on the Main Board of the Shanghai Stock Exchange in 2016 with a current market capitalistation of 3.5 billion yuan (RM2.27bil), MEDIC provides total solutions in clinical informatics and digitalisation of hospital processes.

Bioalpha plans to invest 4.05 million yuan (RM2.62mil) in its joint-venture company with MEDIC.

Hon notes that each of the product is estimated to have an eye-popping market size of up to 100 million yuan (RM64.78mil) per year not only driven by China’s massive population of 1.4 billion but also on the burgeoning spending power of its consumers.

Having said that, Hon says Bioalpha aims to achieve 50% market share for the products in three years.

He anticipates the group to roll out more products after a one-year period.

According to a survey done by Rakuten Insight last year, around 77% of respondents living in China took dietary supplements to improve and strengthen their immune system.

Without a doubt, the demand for drugs for chronic diseases such as diabetes would outweigh acute infectious diseases in China as the country’s life expectancy and affluence levels increase, says Xiang Xu, senior analyst of Eastspring Investments Shanghai in a report titled “Emerging opportunities in China’s healthcare sector.”

China’s government is also encouraging and supporting foreign and local companies to participate in the healthcare industry, points out Hon.


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