1、MAsia Pacific InsightChina HealthcareAI Diffusion in China Healthcare The DeepSeek Effect The release of low-cost AI models has propelled wide AI adoption in the healthcare sector,especially in those areas with high-quality structured data medtech,clinical labs,services,and biopharma.Here we quantif

2、y the cost-saving and direct monetization potential of key AI adopters.Morgan Stanley Asia Limited+Sean WuEquity Analyst Sean.W +852 3963-0755 Alexis Yan,CFAEquity Analyst Alexis.Y +852 2239-7953 Clinton NgResearch Associate Clinton.N +852 2848-6659 China HealthcareAsia PacificIndustry ViewAttractiv

3、e Exhibit 1 :Company overview Source:Morgan Stanley ResearchServices,Medtech,and Drug R&D to benefit from low-cost AI model integration:Following our inaugural report on AI Diffusion in China Healthcare(July 2024),which focused primarily on AI development and integration by digital health companies,

4、the release of DeepSeek and other China-developed LLMs with much lower inference costs has driven much broader AI adoption across the healthcare sector.The DeepSeek effect and MS NEXT framework.We detail how the emergence of DeepSeek is poised to transform the healthcare value chain while unlocking

5、new revenue streams and productivity enhancements across subsectors based on our NEXT framework.By combining the framework with our assessment of companies AI/DeepSeek integration,applications and scale,we identify key beneficiaries in the China healthcare space.In this report,we shift focus from di

6、gital health platforms which are naturally the first wave of AI enablers/adopters to other healthcare segments where we see imminent and quantifiable benefits enabled by DeepSeek-type models.These include biopharma,medtech,hospital and clinical lab operators.We cover four main areas:1)Biopharma-Tran