Fosun Pharma Invests RMB 2.1 Billion in Elderly Care; Shanghai Pharma Acquires Takeda Subsidiary

Keywords of this issue: Shanghai Pharma, Lingkang Pharmaceutical, Wanxu Health, Taibang Bio, SHANGGONG

Reading Tips: This issue features 10 articles, totaling 2,712 words. Suggested reading time: 5 minutes.

The following is the complete content of this issue of Entropy Weekly (August 20–August 26):

【First-Line Observation】

Fosun Pharma announced on the evening of August 21 that its controlling subsidiary, Chancheng Hospital, and Shanghai Fosun Hospital Investment (Group) Co., Ltd. will jointly develop and construct the “Foshan Chanyi Health Hive Project,” with total investment not exceeding RMB 2.1 billion.

Medical and elderly care services constitute a significant component of Fosun Pharma’s current industrial portfolio. In 2017, the operating revenue of Fosun Pharma’s healthcare services segment reached RMB 2.088 billion, representing a year-on-year increase of 24.49% compared to 2016. As of the end of 2017, the medical institutions controlled by Fosun Pharma primarily included Chancheng Hospital, Hengsheng Hospital, Zhongwu Hospital, Wenzhou Geriatric Hospital, Guangji Hospital, Jimin Hospital, and Zhuhai Yannian, with a total of 3,818 approved beds. Additionally, it owns “United Family Healthcare,” a premium healthcare service brand under China Medical System Holdings (formerly known as United Medical International).

Driven by national policy incentives and the sustained efforts of local governments, the number of non-public medical institutions is growing rapidly. Meanwhile, as population aging becomes increasingly prominent, integrated medical-elderly care and rehabilitation have emerged as hotspots for capital investment. In addition to established healthcare enterprises such as Fosun Pharma, real estate developers like Vanke and Greentown, as well as insurance institutions including Taikang and China Taiping, have all entered the field of elderly care communities that integrate medical and nursing services.

【Financing in Numbers】

①【Jinqi Medical Completes Tens of Millions in Series A+ Financing] August 24 News: Jinqi Medical has completed a Series A financing round worth hundreds of millions of yuan. This round was led by Dongfang Shiqi, with an investment amount reaching hundreds of millions of yuan. The funds will mainly be used for acquiring overseas medical institutions and reproductive laboratories holding IVF licenses, as well as further advancing the construction and development of a national internet-based reproductive healthcare platform and promoting gene and stem cell diagnostic and therapeutic technologies.

②【Youfu Clinic Completes Tens of Millions in A+ Round Financing] On August 22, Youfu Clinic, a brand specializing in orthopedic rehabilitation and sports medicine, officially announced the completion of its tens-of-millions-yuan Series A+ financing round, led by Matrix Partners China with ZhenFund as a co-investor. Sun Xiaoyi, founder of Youfu Clinic, stated that following this round of financing, the company will continue to deepen its presence in the Yangtze River Delta region. Building on its existing outpatient services, Youfu Clinic plans to establish a Youfu Surgical Center and further replicate and expand its service model to first- and second-tier cities across China, including Beijing, Guangzhou, Shenzhen, and Chengdu.

③【Shanghai Pharma Acquires Takeda Pharmaceutical Subsidiary for $144 Million] On August 22, a wholly-owned subsidiary of Shanghai Pharmaceuticals acquired 100% of the equity of Takeda Chromo Beteiligungs AG, a wholly-owned Swiss subsidiary of Takeda Pharmaceutical Company, for USD 144 million. The transaction has now been completed. Following this acquisition, Shanghai Pharmaceuticals indirectly holds a 26.34% stake in Guangdong Tianpu Biochemical Pharmaceutical Co., Ltd. As a result, Shanghai Pharmaceuticals’ total shareholding in Tianpu Biochemical has increased from 40.80% to approximately 67.14%, achieving absolute controlling interest.

④【SHANGGONG Completes RMB 40 Million Series A Financing] August 22 News: SHANGGONG, a technology company specializing in fundus screening and chronic disease management, announced that it recently completed a RMB 40 million Series A financing round. Investors included Hidea Investment, Zhuhai Esun Technology, and Guangfa Qianhe. Following this round of financing, SHANGGONG will continue to allocate funds towards product refinement, promotion of implementation, and the development of external collaborative platforms.

⑤【CDH and Other Consortiums Acquire Taibang Biological Products for RMB 26.7 Billion in Cash] On August 21, China Biologic Products Holdings, Inc. (“Taibang Bio”), a Chinese blood products company listed on the NASDAQ in the United States, announced that its Board of Directors had received a privatization proposal. The consortium issuing the privatization offer consists of Gao Xiaoying, CDH Investments, DeFu Capital, and Bank of China Group Investment Limited. The consortium proposes to acquire all issued ordinary shares of Taibang Bio not already held by the consortium at a price of US$118 per share, in a transaction valued at approximately US$3.9 billion.

⑥【Lepsun Completes Tens of Millions of Yuan in Pre-A Financing] On August 21, Laipusheng, an organ transplantation technology developer founded in 2016, completed a Pre-A financing round worth tens of millions of yuan, led by DT Capital, with participation from Chongshan Capital, Lingfu Capital, and Hangzhou Jintou Zhixin. Laipusheng stated that the funds raised in this round will be used for the construction of production workshops and production lines, expansion of product lines, product registration applications, and team expansion.

⑦【Lingkang Pharmaceutical Acquires 25% Equity Stake in Chengmei International for RMB 100 Million] On August 21, Lingkang Pharmaceutical issued an announcement stating that the company acquired a 25% equity stake in Hainan Provincial Tumor Hospital Chengmei International Medical Center Co., Ltd. for RMB 100 million. In the announcement, Lingkang Pharmaceutical stated that this equity acquisition will expand the company’s business portfolio and marks its first foray into the high-end medical services sector.

⑧【Wanxu Health Completes Tens of Millions in Series A Financing] On August 21, it was reported that medical informatics company Wanxu Health has recently completed a Series A financing round worth tens of millions of yuan. This round was led by Qiaojing Capital, with participation from Qilun Venture Capital. The funds are earmarked for the research and development of medical informatics systems, market promotion, and strategic expansion of its hospital SPD (Supply, Processing, and Distribution) business. Wanxu Health is a high-tech enterprise specializing in medical informatics products and solutions, holding notable technological advantages and a solid market share in the sectors of pharmaceutical and medical device ERP systems, as well as health insurance management systems.

⑨【Dajing TCM Completes RMB 15 Million Pre-A Financing Round] On August 20, Li Wenyou, founder of Dajing Traditional Chinese Medicine, announced that the company had completed a RMB 15 million Pre-A financing round in May this year. The round was led by Yang Ruijun, President of iSmart Technology, with Shanghai Hangmi Technology Center (Limited Partnership) participating as a co-investor. Reportedly, the funds will be used for system research and development, among other purposes.

⑩【Yihong Health Completes Tens of Millions in Pre-A Financing] On August 20, Hunan Yihong Health Technology Co., Ltd. recently completed a tens-of-millions-level Pre-A financing round, jointly led by Legend Star and Qifu Capital. It is understood that Yihong Health is a biotechnology company focused on the integration of portable point-of-care testing (POCT) with mobile internet big data, primarily targeting the research, development, and implementation of civilian applications for home medical diagnosis and health monitoring technologies in China.

【Private Class】

Pfizer explores digital innovation across its entire business lifecycle through in-house development, collaborations, and investments, piloting initiatives such as AI-driven drug discovery, electronic data capture, clinical data management, digital marketing, patient empowerment, and digital supply chain solutions. From concept to implementation, Pfizer offers new strategic perspectives on digital innovation for large pharmaceutical companies. In our previous issue, we shared insights on the “pharmaceutical e-commerce model”; in this issue, we explore digital innovation within pharmaceutical enterprises.

Florian Then, Partner at McKinsey & Company:Artificial Intelligence Has Entered the Healthcare Industry, and the Shift Toward Digital Health Has Become an Inevitable TrendThere are three primary drivers behind this trend. First, the cost of data storage is continuously decreasing. Second, the volume of data is expanding rapidly. Third, data is becoming increasingly "intelligent," while computing speeds are accelerating. Computational power has grown significantly over the past five years and is expected to continue increasing, which will undoubtedly sustain the development of digital AI. Currently, the application of artificial intelligence in the healthcare industry remains in its early stages, leaving substantial room for growth.

Li Tiantian, Founder of DXY:Data plays four critical roles: First, measurement and assessment—using data to evaluate outcomes and track progress. Second, aggregation, integration, and connectivity—regardless of whether the stakeholders are service providers, hardware manufacturers, pharmaceutical companies, insurance firms, or hospitals, data helps them identify common ground and entry points for collaboration. Third, guidance—data acts like a compass, providing directional insight. Fourth, filtering—adopting a user-centric perspective, leveraging various data mining techniques to perform user segmentation and select precise target users.

Yang Guoliang, Vice President of Wuhan Central Hospital:Establish a panoramic healthcare big data center covering five domains: clinical diagnosis and treatment, business operations, electronic health records (EHR), chronic disease management, and patient master index. Develop application systems for EHR browsers based on patient authorization mechanisms, clinical research analysis, intelligent early warning of medical behaviors, hospital management and operations, and chronic disease management.

【Topic Interaction】

#I Ask, You Answer#This year, the Hong Kong Stock Exchange (HKEX) plans to amend its listing rules to establish an IPO channel for biotechnology companies that are not yet profitable or have no revenue. This represents one of the most significant reforms to the HKEX’s listing regime in nearly 25 years. The opening of this policy window undoubtedly paves another major avenue for equity financing and public listing for numerous R&D-driven enterprises in mainland China, such as Ascentage Pharma, whose products are still in the clinical development stage. What is your perspective on this development?See you in the comments。

(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 and financing, IPOs, or other significant developments, please directly add the WeChat contact of the Editor-in-Chief of the Finance and Industry Department: jia130201.)