From Traditional Chinese Medicine to Global Leader in Liver Disease Diagnostics
In March 2024, the first-ever MASH (metabolic dysfunction-associated steatohepatitis) drug, Resmetirom, was approved by the FDA, pulling the nearly delisted Madrigal Pharmaceuticals back from the brink and propelling its market cap toward $10 billion. This marked the beginning of a revolution in MASH treatment, transforming what was once considered a "graveyard for drug development" into one of the hottest therapeutic fields.
Amid this frenzy, Fosun Pharma (FR Pharma)-though less flashy than innovative biotech firms-has quietly emerged as a hidden champion, leveraging its dual expertise in traditional Chinese medicine (TCM) and liver disease diagnostics. Its stock price surged 161% in just three months, climbing from ¥30.78/share (June 23 closing price) to ¥80.2/share (as of September 22), making it a dark horse in the capital markets.
01 From TCM Pioneer to Global Liver Diagnostics Leader
FR Pharma's story began in the late 1990s during China's TCM boom.
1998: Founder Wang Guanyi established FR Pharmaceuticals in Ulanqab, Inner Mongolia, focusing on TCM R&D and collaborating with PLA 302 Hospital (now the Fifth Medical Center of PLA General Hospital).
1999: The company acquired the new drug certificate and production technology for Compound Biejia Ruangan Tablets (CBRT) for ¥20 million. This drug, developed over 30 years of research, was the first clinically proven TCM to reverse liver fibrosis, filling a critical gap in liver disease treatment.
2006-2009: CBRT sales grew steadily from ¥104 million to ¥127 million, accounting for 87.79%-96.12% of total revenue and solidifying FR Pharma's leadership in liver disease treatment.
Source: FR Pharma official website
2010: FR Pharma went public on the Shenzhen ChiNext board, standing out as one of the few "biotech-pharma" listed companies at the time.
2011: A pivotal strategic shift-FR Pharma acquired French firm Echosens for €20 million, gaining full ownership of its FibroScan technology, a non-invasive liver stiffness and fat measurement system based on Vibration-Controlled Transient Elastography (VCTE).
By 2025, FR Pharma had successfully transitioned from a TCM company to a global leader in liver diagnostics:
Medical device revenue: ¥482 million (H1 2025), up 13.8% YoY, contributing 67.6% of total revenue.
Overseas revenue: ¥456 million (64% share), reflecting its global expansion.
02 The Liver Diagnostics Revolution
The FDA approval of Resmetirom in March 2024 was a game-changer for MASH treatment:
Priced at $47,400/year, Resmetirom's sales skyrocketed:
Q2 2024: 14.6M→∗∗Q32024∗∗:62.2M → Q4 2024: $100M+
2025: 317Mannualsales∗∗,with∗∗Q22025alonehitting212.8M
Madrigal raised its 2025 sales guidance to $800M+
Source: Madrigal Q2 2025 earnings report
Key driver: Unlike traditional liver biopsy-invasive, costly, and risky-FibroScan's VCTE technology was endorsed by WHO, EASL, APASL, AASLD, and AACE as the preferred non-invasive diagnostic method.
August 2025: The FDA formally accepted VCTE as a surrogate endpoint, paving the way for FibroScan to replace liver biopsies in clinical trials.
As the sole global patent holder of VCTE, FR Pharma's Echosens became the indispensable "pick-and-shovel" player in the MASH gold rush.
03 Opportunities and Challenges
With the booming development of the MASH treatment field, FR Pharma has seized unprecedented opportunities through its unique role as a "pick-and-shovel" player, while FibroScan's innovative sales model has further unlocked its growth potential.
Before 2022, Echosens primarily focused on selling FibroScan devices to large medical institutions and pharmaceutical companies involved in MASH-related clinical trials. In 2023, device sales reached 1,142 units, a 25% year-over-year increase. In 2022, Echosens pioneered a pay-per-test model with its FibroScan GO/Box/Handy series, shifting from traditional equipment sales to a long-term revenue-sharing model for diagnostic services. By the end of June 2025, 977 units of this series had been deployed globally, generating €30-60 per test in Europe and the U.S.
The pay-per-test model not only better aligns with customer needs by reducing upfront costs but also helps FR Pharma deepen customer engagement and secure stable long-term cash flow. In the first half of 2025, revenue from pay-per-test, leasing, and related services reached ¥229 million, accounting for 47.5% of total revenue-making it a key growth driver for the company.
The foundation of this model lies in the patent-protected VCTE technology. FibroScan's VCTE is the only globally patented solution, with continuous innovation and protection until 2040. Its complex design and high imitation barriers further solidify its technological edge. More importantly, FibroScan enjoys unshakable academic recognition: it has been recommended in over 200 global guidelines and supported by more than 5,200 clinical studies, effectively establishing it as the industry standard and creating an insurmountable competitive moat.
Although FR Pharma's 2025 interim report did not show explosive growth, its long-term growth trajectory remains clear. As global MASH drug development advances and more therapies gain approval, demand for FibroScan-an essential diagnostic tool-is expected to surge. Coupled with the accelerating adoption of its pay-per-test model and deep partnerships with companies like Novo Nordisk, FR Pharma has significant earnings potential. Analysts project 30%-40% revenue growth in its medical device segment for 2025-2026, with the pay-per-test model further increasing its revenue share.
Moreover, as FibroScan's penetration rate rises, more early-stage liver disease patients will be diagnosed, potentially boosting sales of FR Pharma's traditional TCM drug, Compound Biejia Ruangan Tablets (CBRT). This could create a dual-engine growth strategy-combining diagnostic devices and therapeutic drugs-to further expand long-term opportunities.
Source: Frost & Sullivan
However, FR Pharma is not without risks. Competitors like Philips are advancing alternative technologies such as Magnetic Resonance Elastography (MRE) and Shear Wave Elastography (SWE), which could challenge FibroScan's dominance. Additionally, the company's performance is closely tied to the MASH industry's trajectory. Any setbacks in MASH drug development, commercialization hurdles, or changes in healthcare reimbursement policies could impact FibroScan's demand. To maintain its leadership, FR Pharma must continuously innovate and expand its technological edge.
Key Takeaways:
Pay-per-test model (47.5% of H1 2025 revenue) is a major growth catalyst.
VCTE patent moat and academic validation create high barriers to competition.
MASH drug approvals will drive long-term demand for FibroScan.
"Device + Drug" synergy could unlock new revenue streams.
Competition and industry risks require ongoing R&D investment.
FR Pharma's strategic positioning in the MASH value chain-combined with its pioneering business model-positions it for sustained growth, though it must navigate evolving market dynamics to stay ahead.
04 Conclusion
The $100B+ MASH market rewards visionaries:
Madrigal defied the "graveyard" odds with Resmetirom.
FR Pharma bet early on diagnostics, turning FibroScan into a cash cow.
With "device + drug" synergies (CBRT sales may rebound as FibroScan detects more early-stage patients) and global expansion, FR Pharma's gold rush story is just beginning.
References:
FR Pharma annual/semi-annual reports, official website
FR Pharma's Growth Drivers, Snowball Tech, Aug 8, 2025
FR Pharma: FibroScan GO Fuels New Growth, Huayuan Pharma, June 5, 2024