Ann: Enlitic, Capitol & Paiyipai Collaborate in China, page-2

ENLITIC AND CAPITOL PARTNER WITH PAIYIPAI TO DEPLOY ENLITIC’S DEEP LEARNING SOLUTION FOR DIAGNOSTIC IMAGING IN HEALTH CHECK CENTRES ACROSS CHINA Capitol

Capitol Health Limited (ASX:CAJ) (“Capitol” or the “Company”) is pleased to announce that it has entered into an Memorandum of Understanding (MOU) with ENLITIC, Inc (“Enlitic”) and Beijing Haoyundao Information Technology Co., Ltd (known as “Paiyipai”) regarding a collaboration to provide Enlitic’s deep learning solution to Paiyipai for diagnostic imaging in Health Check centers across China.

Paiyipai is a medical big data company. The company is a market leader in China in the analysis of individual laboratory medical test results, and the storage and distribution of user medical records

The private health checkup industry has emerged within the last decade in China to be worth an estimated RMB80 billion per annum (AUD16 billion). It is an important part of the health care system where it is common for people to have a health checkup annually in the absence of a General Practitioner network that exists in Australia. Health Check centers generally do not treat patients, and only refer them for treatment if health problems are diagnosed.

A typical basic checkup package includes blood tests, chest x-ray, ultrasound and medical checkup, with more expensive packages that include MRI’s, CT studies and genetic testing.

The high volume nature of the business means that more than an estimated 300 million people per year use health check up services in China, with the majority of patients receiving annual chest x-rays. This volume, is an ideal opportunity to use ENLITIC’s deep learning products to radically increase the efficiency of radiologists, particularly Enlitic’s recently developed chest x-ray triage product.

The MOU is non-binding except for a 3 months’ exclusivity period in relation to the use of Enlitic’s technology relating to diagnostic imaging for the health check business in China during which the parties intend to negotiate a collaboration agreement, with the view to forming a Chinese joint venture between the parties. Enlitic have already undertaken a successful 10,000 patient chest x-ray trial with Paiyipai using the triage product. The collaboration is not expected to require any initial cash investment from Capitol or Enlitic.

This MOU is expected to result in the first large scale commercial deployment opportunity for Enlitic’s deep learning technology in China. The recent Chinese Government healthcare reform has resulted in substantial growth in the private healthcare industry in China. It has seen growth in private hospitals (many that are now foreign owned), private pathology operations, private health check networks, and more recently the approval for private independent diagnostic imaging centers.

Andrew Harrison, Managing Director of Capitol, noted, “The scale of the Chinese health check market lends itself to the deployment of the Enlitic technology due to very large patient volumes and the shortage of supply of radiologists. I believe Enlitic technology will drastically change the economics of this market and provide its users with a significant competitive advantage.”

“AI supported diagnostic solutions will drive significant efficiencies in healthcare delivery while providing rich insights in areas such as early detection treatment planning and disease monitoring. We are excited about our work and what it will mean for healthcare in the 21st century” said Sally Daub, Board Member, Enlitic.