Diagnostic Firm Biofield Looks To Broaden Scope in China and India

HONG KONG - Looking to penetrate deeper into the Asian market, diagnostic equipment distributor Biofield, owned by Hong Kong-based MacKay Holdings, has acquired new cancer diagnostic products which it plans to market in China and India. Last week, the company announced it had acquired worldwide distribution rights for various cancer diagnostic products from ValiRx, a UK-based biotechnology company that focuses on cancer products.

The first diagnostic tool Biofield acquired is a human papilloma virus test for cervical cancer. The company also acquired the rights for ValioRx's line of HyperGenomics and Nucleosomic cancer diagnostic products. Biofield plans to market the products in large population centers, particularly in China and India. It recently opened an office in Bangalore to market an oral herpes device it had earlier acquired from NeuroMed.

"The opportunity is huge here," said David Hong, a Hong Kong-based executive with MacKay Holdings, owner of Biofield. "Our goal is to educate people on the idea of preventive care. Don't go see a doctor when you are sick, take care of yourself first. As we all know, the best cure to cancer is early detection."

The focus on Asia is a departure for the company, which was previously focused on getting approval from U.S. FDA for its own Biofield Diagnostic System for breast cancer. Biofield is still pushing for the approval but the ongoing expansion of China's medical system offers new opportunities and, according to Hong, brings the company closer to completing the vision of its owner.

In announcing the new products, group Chairman James MacKay said sales in China could be potentially huge.

"We anticipate sales of our portfolio of products in China over the near term through the new Chinese national health care joint venture, Worldwide Lifecare Limited," said MacKay.

The venture brings together the National Labor Union, financial institutions and the Chinese government - which he said put up $350 million for the project. Worldwide Lifecare plans to open some 500 medical centers by 2012 and include Biofield's products in their lineup. The medical centers will be located at buildings controlled by the National Labor Union, a government-backed body that represents workers across the country. The network should help the National Labor Union and the government address health care problems related to an aging population.

MacKay announced the launch of Worldwide Lifecare last June, saying the group was directly responsible for the project that would eventually see clinics open across China and cover 60 percent of the population.

"Since [Mackay's] acquisition of Biofield, his goal and objective was to bring Biofield into Asia through his connections," Hong said.

Biofield, listed in the U.S., licensed MacKay Holdings in 2007 to manufacture and commercialize its BDS product in a deal worth $1 million - $150,000 upfront and $850,000 upon the launch of the product in China - plus ongoing royalties.

The two companies then entered a deal in 2006 that would see MacKay eventually own a majority stake of Biofield.

In December, Biofield also acquired a 10-percent stake in ValiBio, the cancer diagnostic subsidiary of ValiRx, and an option to acquire another 15 percent. Biofield said the deal allows the company to expand its range of diagnostic products. In turn, ValiBio said the tie up should give its diagnostic products more global reach. ValiRx is a UK-based biotechnology company focused on cancer products.

- Alfred Romann ([email protected])