WuXi AppTec Launches 'A+H' Dual Listing Plan; Novartis Partners with Tencent to Pioneer Digital Healthcare Innovation

Keywords of this issue: Yimai Yangguang, Allergan, Ma Yinglong, Tainuomaibo, Harbin Pharmaceutical Group

Reading Tip: This issue features 10 articles, totaling 3,005 words. Suggested reading time: 5 minutes.

Below is the complete content of this issue of Entropy Weekly (September 17–September 23):

【Frontline Observations】

On September 18, Novartis China and Tencent officially signed a strategic cooperation memorandum in Shanghai. The two parties will leverage their respective resource advantages in the pharmaceutical and healthcare sectors and the internet industry, utilizing advanced internet information technologies to empower medical innovation and create a patient value-oriented digital healthcare service innovation model.

It is reported that the two parties will join forces to initially launch their collaboration in the cardiovascular field, which poses the top health threat in China. Leveraging Tencent’s newly launched online drug scanning platform embedded within the WeChat social ecosystem, and utilizing innovative WeChat Mini Programs as the carrier, they aim to deliver a lightweight, systematic, and personalized medication service model.

In the era of big data, an abundance of clinical medical data provides references for patients and enables a more scientific assessment of healthcare expenditures and health outcomes. By monitoring the distribution of physician resources and population across regions, big data facilitates the development of a tiered diagnosis and treatment system, promotes the balanced allocation of resources, and alleviates the societal challenges of difficult and costly access to medical care.

Zhang Lili, Secretary-General of the Shanghai Overseas Economic and Technological Promotion Association and an expert member of the Shanghai Informatization Center, pointed out that digital healthcare is breaking down certain traditional constraints and limitations, opening up new avenues for innovation in the medical industry, and driving a comprehensive transformation of the entire healthcare system—from testing and diagnosis to drug development and healthcare management.

【Financing in Figures】

①【Malong Dental China Completes RMB 230 Million Series D Financing] On September 21, Malo Clinic China announced the completion of its Series D financing round, raising RMB 230 million. The round was led by VStar Capital, with participation from Greenland Financial Holdings and Noah Asset Management. Shanghai Fuyi Daohe served as the exclusive financial advisor. Malo Clinic was founded in Lisbon, Portugal, in 1995 by Dr. Paulo Malo, a globally renowned expert in dental implantology and prosthodontics. In late 2013, Dr. Malo partnered with Shao Zongzong to establish Malo Clinic China.

②[StarChild Medical Completes Series C Financing]] On September 21, Star Child Medical announced the completion of its Series C financing round, with Maxing Investment as the lead investor. After initially investing in Star Child Medical in 2015, Maxing Investment has continuously increased its investment over the past few years. It is understood that this funding will support Star Child’s expansion into domestic and international markets and accelerate the development of new products. Star Child Medical is an in vitro diagnostics technology company whose product portfolio includes the domestically produced Pylon clinical diagnostic system, primarily targeting clinical diagnostics for cardiovascular and cerebrovascular diseases, infectious or communicable diseases, tumors, and therapeutic drug monitoring.

③【Tianmai Biopharma Completes RMB 300 Million Pre-A Financing Round] On September 20, Zhuhai Trinomab Biotechnology Co., Ltd. announced the completion of its RMB 300 million Pre-A financing round, led by Jinhang Industrial Investment Company. This funding will propel Trinomab’s evolution from a “biotechnology” company into a “biopharmaceutical” company. Trinomab was registered and established in Jinwan District, Zhuhai City, at the end of 2015. It was co-founded by Liao Huaxin, an expert under China’s “Thousand Talents Plan” and former Research Director of the Duke Human Vaccine Institute at Duke University, and Zheng Weihong, who has many years of experience in the medical industry.

④【Asia Healthcare Secures $150 Million in Strategic Investment] On September 19, Hong Kong Asia Medical Co., Ltd. announced a strategic partnership with General Atlantic, a leading global investment firm, under which General Atlantic will invest $150 million in Asia Medical. Joy Capital served as the exclusive financial advisor. Founded in Wuhan in 1999, Asia Medical currently operates two cardiovascular hospitals in Wuhan and Xinjiang, and jointly manages four cardiovascular centers.

⑤【Allergan Invests $14.7 Million to Build Medical Aesthetics Center] On September 19, according to a report by the foreign media outlet FiercePharma, Allergan’s medical aesthetics center in China is expected to open in early 2019. The medical aesthetics innovation center, with an investment of $14.7 million, will serve as a training hub for medical aesthetics practitioners and an education and experience center for consumers. It is also Allergan’s first global medical aesthetics innovation center.

⑥【Yimai Yangguang Completes RMB 130 Million Series B+ Financing Round] On September 18, Yimai Yangguang Imaging Hospital Group announced the completion of its RMB 130 million Series B+ financing round, led by CICC Capital with participation from Xiaofeng Investment. Currently, Yimai Yangguang has become the company with the leading number of independent medical imaging center licenses in China. Leveraging its three-tier investment and construction strategy (“national–provincial–regional”), group-based operations, professional management, and technology-enabled connectivity, Yimai Yangguang has emerged as an industry unicorn in terms of comprehensive strength.

⑦【United LiGe Completes C-round Financing of RMB 400 Million】On September 18, BCC Group announced the completion of its C-round financing of RMB 400 million, exclusively invested by Oceanwide Capital. As one of China's earliest platforms supporting physicians in launching their own practices within a chain model for medical aesthetics, BCC Group has currently established over 40 medical aesthetic institutions across 15 cities nationwide. The proceeds from this financing will be primarily used to further support BCC Group's operational development.

⑧【PharmaCube Completes Tens of Millions in Series A Financing] On September 17, PharmaCube, a leading domestic precision big data platform in the pharmaceutical industry, announced the completion of its tens-of-millions-yuan Series A financing round. The round was led by Chongde Capital, with participation from Legend Star, Dynamic Balance Capital, and other investors. This investment will support PharmaCube’s in-depth development of full-chain data across the pharmaceutical industry, further enhancement of its machine learning capabilities, and expansion of its international business.

⑨【Ma Yinglong Invests RMB 32 Million to Transform into a Big Health Industry Model] September 17 news: Ma Yinglong announced that it will invest to establish Wuhan Ma Yinglong Grand Health Co., Ltd., mainly engaged in cosmetics, food (including health food), sanitary products, disinfectants, non-woven fabrics, plastic products, paper products, medical consumables, etc. Ma Yinglong subscribed for a cash contribution of RMB 32 million, holding a 64% stake; Huahan Yuyuan subscribed for a cash contribution of RMB 10 million, holding a 20% stake; Tongxin Jian subscribed for a cash contribution of RMB 8 million, holding a 16% stake.

⑩【Harbin Pharmaceutical Group Seeks to Acquire Health Supplement Giant GNC] On September 17, Harbin Pharmaceutical Group announced that the agreement to acquire a 40.1% stake in the U.S. health supplement company GNC had been approved by the Committee on Foreign Investment in the United States (CFIUS), which determined that the transaction posed no unresolved national security concerns. Harbin Pharmaceutical Group purchased 299,950 shares of convertible preferred stock from GNC at a price of $1,000 per share, for a total transaction value of approximately $300 million.

【Private Class】

On September 18, Laobaixing Pharmacy issued an announcement stating that its wholly-owned subsidiary, Anhui Baixingyuan Pharmacy Chain Co., Ltd., plans to use RMB 32 million of its own funds to acquire the assets and 12 stores of Anhui Zhengtong Pharmacy Chain Co., Ltd. To date, Laobaixing has initiated a total of 12 mergers and acquisitions this year. Amid the opportunities presented by the outflow of prescription drugs, both pharmaceutical manufacturers and distribution enterprises are eager to secure a share of the market. Under this trend, what are the future development prospects for prescription drug outflow in China? And who stands to truly benefit? In the previous issue, we discussed “Developments in Pharmaceutical E-commerce.” In this edition of the Private Sharing Classroom, we will explore the topic of prescription drug outflow, for reference only.

Xia Jun, Chairman of Chengdu New Medical Trend Technology Co., Ltd. and Chief Strategic Advisor of Chengdu Quanyuantang Chain Co., Ltd.:In the United States, hospitals do not require outpatient pharmacies, as patients can either purchase medications directly from retail pharmacies or have them delivered to their homes. Furthermore, commercial insurance plans often designate specific pharmacies for medication dispensing. China is following a similar trend, characterized by the outflow of outpatient prescriptions to the social sector. After receiving a prescription, patients can independently choose to purchase and arrange delivery through retail pharmacies or e-commerce platforms, thereby reducing the proportion of pharmaceutical revenue in hospitals.

Retail pharmacies, particularly chain retail pharmacies, are the biggest beneficiaries of prescription outflow. Retail pharmacies possess a strong business foundation, enabling them to systematically meet patients’ demands for medications and pharmaceutical services. Secondly, the high coverage rate of retail pharmacies in China positions them as the preferred choice for residents purchasing medicines. Thirdly, with the support of information technology tools and prescription circulation platforms, the competitiveness of retail pharmacies is strengthening, allowing them to provide residents with more diversified and precise medical, pharmaceutical, and health management services.

Ma Guanglei, Deputy Secretary-General of the China Pharmaceutical Commerce Association and General Manager of Yi Fuzhen:Currently, the core of the new healthcare reform is “Internet+”, including Internet+ Healthcare and Internet+ Pharmaceuticals. In the latter reform, it is necessary to separate pharmaceuticals from medical services, and the outflow of prescriptions can meet people's demand for convenient access to medications. In the future, the market for prescription outflow will be reserved for enterprises that align with national policy directions and promote the standardized development of prescription outflow.

During the previous phase of separating prescribing from dispensing, numerous irregularities emerged, such as the external circulation of paper prescriptions—with patients obtaining medications based on physicians’ prescriptions—designated pharmacy pick-up arrangements by hospitals, and remote prescription issuance. The core driver behind the growth of the prescription outflow market is policy support for the rational separation of prescribing and dispensing, which has also stipulated the specific mechanisms for prescription outflow. The entire prescription outflow market is currently transitioning from a period of unregulated expansion to one of standardized development.

【Topic Interaction】

#Ask Me, I Answer#On the evening of September 18, WuXi AppTec’s application materials for the issuance of H shares were disclosed on the website of the Hong Kong Stock Exchange (HKEX). The formal launch of WuXi AppTec’s H-share issuance process followed a series of milestones: the Board of Directors approved the proposal to issue H shares and list on the Main Board of the HKEX on July 1; shareholders voted in favor of the proposal at the general meeting on August 22; and the China Securities Regulatory Commission (CSRC) accepted the application on September 4. What, then, is the significance of establishing a dual “A+H” financing platform for WuXi AppTec? And what promising developments can be expected from the company in the future?See you in the comments section.

(The above data is sourced from public channels such as company announcements and media reports. The information published in this article is for reference only; Health界 does not guarantee its accuracy or completeness. Due to limitations in data collection, the investment and financing information compiled in the main text covers only a subset of enterprises. If your enterprise has major updates regarding new investment, financing, IPOs, etc., please directly add the WeChat account of the Editor-in-Chief of the Health Industry Department: jia130201.)