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Shanghai COVID-19 PCR test will no longer continue the free policy from January 8, 2023

From January 8, Shanghai nucleic acid testing will no longer continue the free policy.

Following the relevant requirements for epidemic prevention and control, the Office of the Municipal Leading Group for Epidemic Prevention and Control has decided: From January 8, the free policy of nucleic acid testing in Shanghai will no longer be extended.

Citizens who need nucleic acid testing can go to the nucleic acid sampling point to test at their own expense under the implementation of the new policy.

The staff of nursing homes, nursing homes, social welfare, and other institutions are still required to undergo nucleic acid testing by regulations. All districts should set up sampling points scientifically and reasonably and continue providing nucleic acid testing services for needy citizens.

From the perspective of enterprises, as an essential means of epidemic prevention and control, nucleic acid testing has also blown up a huge market. According to the data from Tianyancha, as of May last year, more than 3,400 enterprises in China are in business, existing, moving in, and moving out.

Among the 3,400 "infectious disease testing" companies, more than 70 nucleic acid testing-related companies whose business scope includes "SARS-CoV-2 nucleic acid testing". Guangdong Province has the largest nucleic acid detection-related companies, accounting for the country's 58%.

At the beginning of the epidemic in 2020, the price of nucleic acid testing was as high as 200 yuan per person, which also gave rise to the myth of nucleic acid testing companies creating wealth. The China Commercial Industry Research Institute once conducted statistics in the fourth quarter of 2021. The results showed that the five listed testing companies with the highest revenue in the first three quarters of that year were Dian Diagnostics, KingMed Medicine, Daan Gene, Sansure Biotech, Maccura Biology, Bioperfectus, HybriBio, Wuhan EasyDiagnosis, and Liferiver followed closely behind.

Taking Dian Diagnostics as an example, in 2021, the company's operating income will be about 13.083 billion yuan, a year-on-year increase of 22.85%; the net profit attributable to shareholders of listed companies is about 1.163 billion yuan, a year-on-year increase of 44.83%. In the first three quarters of this year, Dian Diagnostics achieved an operating income of 15.63 billion yuan, a year-on-year increase of 67.37%; net profit attributable to the parent was 2.428 billion yuan, a year-on-year increase of 96.94%.

However, in the face of the turmoil of data fraud, the intensified competition in the COVID-19-related business market, and the ever-compressing profits, nucleic acid testing companies have also bid farewell to the stage of blind growth.


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