Dx&Vx said it signed a business agreement with Jointown Medical Devices Group, China's largest pharmaceutical and medical device distributor, to develop, supply, and distribute in vitro diagnostic medical devices.

Under the accord, Dx&Vx will take charge of R&D, production, and supply of various in vitro diagnostic products suitable for the Chinese market based on its technology. Jointown Medical Devices Group will license, distribute, and sell these products in China.

Also, the two companies plan to establish a framework for supplying the developed products jointly to international organizations and third countries other than China and agreed to cooperate in the event of a new infectious disease outbreak, such as Covid-19.

"We are happy to be able to cooperate with Jointown Medical Devices Group, a representative pharmaceutical and medical device distribution group in China, and we plan to make efforts to advance our other platforms into the Chinese market, including genome analysis services for newborns and mothers," Dx&Vx CEO Park Sang-tae said. "We will also prepare to serve as a bridgehead to help Korean companies with excellent technology advance into China."

Jointown Medical Devices Group's assistant to Chairman Rong Wenhui also said, "The combination of Korea's DX&VX's in vitro diagnostic R&D technology and Jointown Medical Devices Group's strong distribution network for clinics and pharmacies will be able to elevate China's medical service to the next level."

Through the synergy of the two companies, the company will cooperate to advance into the global market, including the third world in the future, Wenhui added.

According to an official Chinese medical device report, the Chinese medical device market had an annual sale of 908.1 billion yuan (181 trillion won) in 2021. It will have an average annual growth rate of 11 percent over the next decade.

Notably, the in vitro diagnostics market is rapidly increasing its share in the Chinese medical market, accounting for 80 percent of the immune diagnostics market since the Covid-19 outbreak.