Qlife Holding: Chinese partnership deal offers great potential

Qlife Holding’s shares were up 35 percent yesterday as Swedish based life-science company Qlife Holding announced that they entered into a partnership deal with Chinese based Hipro Biotechnology which will sell, distribute, and produce the point-of-care Egoo Health system developed by Olife Holding on the Chinese market, primarily to hospitals of which there are more than 14.000 in China. The Egoo Health system uses various types of biomarker tests to monitor the health of patients, the first test from Olife Holding being a CRP test to measure for inflammation level. Hipro Biotechnology expects to add some of their already developed biomarker tests to the capsules based Egoo Health system already designed for multiple types of biomarker use. Hipro Biotechnology will also take Egoo Health through the Chinese regulatory process to get the system approved. Lastly, Hipro Biotechnology will produce the different types of biomarker capsules and test units under the agreement, while the proprietary Egoo Health equipment system will continue to be produced in Scandinavia. This will likely accommodate investor concerns regarding intellectual property rights issues.

The share price reaction was very positive as this first partnership deal marks an important milestone for Qlife Holding. Although it was already announced three months ago that a Letter-Of-Intent was signed between the to parties, the finalization of the deal illustrated the importance for biotech and life-science companies to reach their promised goals or milestones on time. In this case the deal is also important as reflects the first external validation of Qlife Holdings Egoo Health technology and concept from an established and leading industry player.

According to Qlife Holding, Hipro Biotechnology has a leading position in the Chinese diagnostic market as they are one of the main distributors to the more than 14.000 hospitals in China. This promises well for the objective of Qlife Holding to accelerate its commercialization process and reach the necessary scale to become profitable. Hipro Biotechnolgy expects to sell millions of Egoo Health systems on an annual basis from 2025. Although not disclosed in detail, Qlife Holding will receive milestones, as well as royalties from future sales from Hipro Biotechnology. Combined, this will potentially affect the financial position very positively from both a short- and longer-term perspective, which are the key challenges for most biotech and life-science companies when they are moving from their investing and developing phase to their commercialization phase.

Disclaimer: HC Andersen Capital receives payment from Qlife Holding for a Digital IR/Corporate Visibility subscription agreement. /Claus Thestrup 8:20 AM 05-12-2023.