Ping An Bank and Shanghai-based research outsourcing provider WuXi AppTec have signed a 10 billion yuan contract to explore the health industry together.

According to the deal, Ping An will support WuXi AppTec's credit line in the next five years to develop pharmaceutical services in the local market, particularly in the cities of Shanghai, Tianjin, Hubei province's Wuhan, and Jiangsu province's Suzhou, Wuxi and Changzhou.

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Ping An will also back WuXi AppTec's efforts to widen its customer base and enhance its research and development service. According to the WuXi AppTec chairman and CEO Li Ge, this strategic partnership will take advantage of Ping An's financial capability and WuXi AppTec's competitiveness in the field of research and development.

The Shanghai-based WuXi AppTec is a leading contract research service provider and specializes in the pharmaceutical, biotech and medical device industries.

Meanwhile, the two companies have rolled out an industrial investment fund to help WuXi AppTec's biopharmaceutical investment, noting that this is the company's area of specialty. Given this advantage, "Ping An will try to exert... in financial investment and management to promote the development of China's health industry," Ping An president Shao Ping said.

Vice President of operations at WuXi HealthNet Niu Lihua explained that WuXi App Tec's first health management service product utilizes only 2 ml of saliva from users to produce a detailed health report of the patient. The company has also developed a wearable device that can track a user's overall health condition, providing patients advice on diet, exercise and health management.

More attention is being directed to health issues surrounding the mainland, particularly among the elderly population, as mortality rate related to the environment is reported to be increasing. 

TagsWuXi AppTec, Ping An Bank, health industry, China's health sector, WuXi HealthNet