Baiyang Medical Group and Xi'an Janssen Forge Strategic Partnership to Explore Diversified Development in Healthcare

On February 28, BAHEAL PHARMACEUTICAL GROUP (hereinafter referred to as “BAHEAL”) and Xian Janssen Pharmaceutical Ltd. (hereinafter referred to as “Xian Janssen”) entered into a strategic partnership in the pharmaceutical and healthcare sector. By leveraging their combined strengths—digital precision marketing, an extensive marketing network, and professional promotional capabilities—the two parties aim to enhance the accessibility of high-quality healthcare products.

In recent years, to address the issue of hospitals relying on drug sales for revenue and to enable the public to enjoy higher-quality and more efficient healthcare services, the state has implemented a series of coordinated policy measures. Buzzwords such as “separation of prescribing from dispensing,” “volume-based procurement,” and “consistency evaluation” have frequently emerged, sending positive signals of industrial transformation. Entering 2019, building on the initial successes of the comprehensive reform to separate prescribing from dispensing, the volume-based procurement pilot program in the “4+7” cities was accelerated to further promote high-quality, intensive development of the pharmaceutical industry. . The progressive advancement of healthcare reform measures is driving medicine back to its essence, presenting unprecedented challenges for both multinational and domestic enterprises.

According to the "2019 Pharmaceutical Industry Development Report" released by the State Information Center, from January to September 2018, the pharmaceutical industry achieved main business revenue of RMB 1.82037 trillion, a year-on-year increase of 13.6%, with the growth rate rising by 1.5 percentage points compared to the same period of the previous year. The report also mentioned that under the influence of a series of pharmaceutical policies, there is significant pressure on drug prices to decrease, and listed pharmaceutical companies will continue to increase their research and development efforts in order to capture more market share. It is preliminarily estimated that the main business revenue of the pharmaceutical industry in 2019 will reach approximately RMB 2.783 trillion, representing a year-on-year growth of about 15%. Amidst favorable expectations, major pharmaceutical enterprises are actively seeking paths for diversified development, striving to secure a position in the industry's growth.

As one of the first pharmaceutical companies to enter China since the reform and opening-up, Xian Janssen has been committed to addressing urgent patient needs since its establishment in 1985. By integrating its pursuit of science and innovation with patient interests, Xian Janssen delivers innovative, comprehensive healthcare solutions to Chinese patients and healthcare professionals. Zhuang Xiangxing, Chairman of Xian Janssen, stated that BAHEAL PHARMACEUTICAL GROUP has experienced rapid development in recent years and demonstrated unique innovation in the application of information technology. He expressed hope that both parties would actively explore opportunities, learn from each other, and work together to create a future free of disease.

Fan Jie, Senior Director of Channel and Business Management at Xian Janssen, elaborated in detail on the company’s market expansion strategy in China, stating that,“As Johnson & Johnson’s pharmaceutical subsidiary in China, Xian Janssen has experienced rapid growth in the Chinese market. In 2018, we successfully launched six new products in China and expanded three product lines covering multiple therapeutic areas, including oncology and mental health disorders. Our continuously enriching product portfolio has injected strong momentum into our robust performance growth. To better adapt to the evolving landscape of the Chinese market, diversification has become imperative. We believe that, in addition to expanding our own product lines, it is essential to collaborate with leading local enterprises in China. BAHEAL PHARMACEUTICAL GROUP stands out as the company with the deepest understanding of IT within the healthcare industry, and likewise, the one with the greatest expertise in healthcare within the IT sector. Therefore, Xian Janssen will proactively partner with BAHEAL PHARMACEUTICAL GROUP to jointly explore the vast pharmaceutical and healthcare market, aiming to achieve a win-win outcome for all parties and create a brilliant future.

Fu Gang, Chairman of BAHEAL PHARMACEUTICAL GROUP, stated, “China’s healthcare industry is relatively immature, with high marketing costs for manufacturing enterprises and relatively inadequate and inefficient commercial service capabilities, failing to meet the needs of the government and the public. In recent years, successive healthcare reform policies have reshaped the commercial value chain of the health industry, causing significant disruption. Therefore, new technologies and models are needed to optimize scenarios and facilitate industrial upgrading. As a technology-intensive service provider, BAHEAL integrates resources through a platform mechanism, leveraging its digital management and scenario-based solutions,” "Ultimately enabling high-quality products to be genuinely utilized. We have partnered with Xian Janssen to achieve complementary advantages and resource sharing across multiple areas, joining forces to provide internationally leading healthcare products and services to the Chinese people."

As an innovative resource integration platform for the health industry, BAHEAL PHARMACEUTICAL GROUP is built on an advanced brand distribution model, distinguished by leading technological innovation, and centered on efficient industrial synergy. The Group has established business collaborations with over 30 provinces and municipalities across China, more than 12,000 hospitals, and 300,000 pharmacies, providing comprehensive solutions for every segment of the broader health industry chain. In terms of brand promotion, the Group has successfully cultivated multiple renowned domestic and international brands, such as Diqiao and Bite, through mature marketing models and precise communication strategies, securing a leading position in the niche categories of maternal and infant calcium supplementation and chemical indigestion. Regarding the application of new technologies, the Group remains at the forefront of development. Its subsidiary, Baoyang Intelligent Technology, leverages the Baoyang AI Research Institute as its technical foundation, builds upon the Commercial Marketing Cloud (Mingjing Marketing Cloud) and the Intelligent Medical Cloud (Puti Medical Cloud), and utilizes the Yifuzhen Third-Party Prescription Sharing Platform as a link. Through this "Two Clouds, One Institute, One Platform" model, the Group has constructed three comprehensive solutions—AI-driven Smart Hospitals, Smart Pharmacies, and Intelligent Marketing—thereby creating a more scenario-based, systematic, and comprehensive innovative medical ecosystem.

Currently, artificial intelligence is rapidly emerging in the vertical healthcare sector, transforming medical practices and even healthcare models, while further promoting the sustainable development of the entire pharmaceutical and health industry. Amidst this new trend of industrial transformation, BAHEAL PHARMACEUTICAL GROUP, driven by internationally leading intelligent information technology, has built a new pharmaceutical distribution platform in China by leveraging its capabilities in industrial resource integration and the application of new technologies. It optimizes corporate marketing scenarios through innovation and provides professional services to upstream and downstream players in the industry chain, relying on its three core competencies: technology, data, and solutions. To date, BAHEAL PHARMACEUTICAL GROUP has partnered with Takeda Pharmaceutical, Itochu, AtriCure, Merck & Co., CSL Behring, 3SBio,MylanLeading enterprises in China and other regions have formed partnerships to help partners expand their products, technologies, and services into broader markets through digital precision marketing capabilities and robust marketing networks, thereby driving effective sales momentum. In the future, BAHEAL PHARMACEUTICAL GROUP will continue to deepen platform development and open cooperation mechanisms, creating commercial value while promoting quality improvement and efficiency gains across the entire healthcare industry.