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Mu Zhe Says: Who Is the Leading Platform in the U.S. Mental Health Sector? Responses to Some Current Challenges in Digital Therapeutics

“For those of us engaged in strategic research and early-stage investment, what we sometimes lack is not conceptual models or leading case studies, nor rational analysis and data support, but rather the imagination to envision the future, and the confidence that remains unwavering even in the face of a pessimistic present.”

Should we focus solely on refining digital therapeutics (DTx) itself to address clinical efficacy and adherence? Or should we take a different approach by creating a “1+1>2” model that integrates Talkspace and Happify? Sanvello, the mental health platform under UnitedHealth Group, has already provided the answer.

Recently, there has been considerable debate surrounding digital therapeutics for mental health. Some argue that pure software solutions cannot be effective; others contend that simply moving offline psychotherapy online lacks innovation; still others claim that the U.S. commercial insurance payment model is not applicable in China. These critiques are valid, yet one-sided. Behind business model innovation lies profound wisdom and insight.

I. Domestic News

1、Lida Rongyi’s First Cardiology Clinical Medical Imaging Transmission and Processing Software Approved for NMPA Medical Device Certification

Recently, Lida Rongyi’s independently developed “Medical Image Transmission and Processing Software” successfully passed the expert panel review and obtained the Product Registration Certificate and Medical Device Manufacturing License (Class II) from the National Medical Products Administration (NMPA). The approval of this NMPA Class II certification signifies that the product’s performance has been fully recognized and affirmed by the industry, effectively promoting the application and development of clinical pathway data integration technology. Since its establishment in 2015, Lida Rongyi has remained focused on innovation in the integration and service of clinical pathway data for complex chronic diseases. Committed to achieving intelligent surgical procedures and data standardization, the company aims to enhance clinical efficiency while reducing medical costs and time. Its independently developed series of medical system products have secured multiple invention patents and software copyrights.

2. The First Launch Meeting of the National “Internet + Medical Health” Project Held in Jiande

On November 23, the inaugural launch meeting for the national-level research project “Internet Plus” Whole-Course Disease Management and AI Digital Therapeutics was held at the First People’s Hospital of Jiande City. Attendees included Wang Haitao, Executive Deputy Director of the Training Center of Peking Union Medical College, and Fang Xiangming, a member of the research team who holds a Ph.D. from Guanghua School of Management, Peking University, and serves as a researcher at the Institute of Computer System Architecture. The project is sponsored by the Chinese Hospital Association, the Institute of Hospital Management at Tsinghua University, and the Training Center of Peking Union Medical College; organized by the Training Center of Peking Union Medical College; and technically supported by Weimai. The research aims to leverage “Internet Plus” technologies and efficient management mechanisms to investigate the practical experiences of hospitals at all levels in providing comprehensive, full-cycle, online-and-offline integrated, multi-tiered, and diversified medical and health services to the general population. It seeks to establish referenceable, replicable, and implementable standards and case examples for “Internet Plus” whole-course disease management, thereby promoting the development of whole-course disease management and AI digital therapeutics at the national level, accelerating the digital transformation of the healthcare industry, improving patients’ quality of life and hospitals’ operational and managerial capabilities, and supporting the high-quality development of public hospitals.

3. An Analysis of Shanqiu Liankang’s “Internet+” Deep-Service Model

Starting with diabetes management, among enterprises deeply rooted in chronic disease management services in China, Shanqiu Liankang has broken through in the industry by adopting an “Internet+” deep-service model similar to Livongo’s, which prioritizes individual outcomes as the core management objective. This approach enables the creation of health management plans with guaranteed efficacy for each patient. Shanghai Shanqiu Liankang Health Management Co., Ltd. is a professional institution providing multidisciplinary health management services to individuals suffering from metabolic chronic diseases such as diabetes, obesity, and fatty liver disease. The company has developed a scientifically effective digital therapy platform called “Shanqiu Cloud Health.” Leveraging real-time data from connected devices such as continuous glucose monitors (CGMs), smart bracelets, and smart body fat scales, and combining AI virtual assistants with human experts, the platform delivers personalized assessments and dynamic monitoring. It provides online and offline intervention guidance across four key disciplines: medication, nutrition, exercise, and psychology. Supported by 24/7 private health management teams, the service helps users adhere to their plans, interprets user data, gradually assists patients in controlling their conditions and achieving remission, and ultimately aims to reach glycemic control targets and restore pancreatic islet function.

4. Caring for Women’s Health: 2021 Digital Healthcare Summit Successfully Held

Recently, the “Caring for Women, Innovating Healthcare: 2021 Digital Health Summit” was successfully held at the InterContinental Guangzhou Poly Hotel. The forum was hosted by the Guangdong Modern Health Industry Research Institute and the New Channel Branch of the China Pharmaceutical Material Association, and organized by Guangzhou Lizetang Pharmaceutical Technology Co., Ltd. Themed “Caring for Women, Innovating Healthcare,” the event aimed to exchange insights on emerging industry trends, share new digital health technologies, and explore the integration and development of digital empowerment in life and health. It sought to implement the national health strategy and advance the Healthy China initiative, focusing on topics such as internet-based diagnosis and treatment, smart hospital management, and the innovative ecosystem of digital healthcare. The conference conducted in-depth discussions on key industry concerns, including new applications, approaches, and scenarios enabled by innovative information technology driving the digital transformation of healthcare in the post-pandemic era. It facilitated the integration of resources and close collaboration among government, enterprises, academia, research institutions, and medical practitioners, thereby identifying the development direction and service priorities of smart healthcare under the “Innovative Healthcare” strategy.

5. Zhiyun Health Joins the “Self-Discipline Convention on Data Security for Healthcare and Medical Networks”

Recently, the 2021 China 5G+Industrial Internet Conference, hosted by the Ministry of Industry and Information Technology (MIIT) and the People’s Government of Hubei Province, and organized by entities including the News and Publicity Center of MIIT and the China Academy of Information and Communications Technology (CAICT), was held in Wuhan, Hubei Province. At the Forum on Digital Transformation and Data Security in Healthcare, 85 organizations and enterprises, including Zhongnan Hospital of Wuhan University, Wuhan Central Hospital, Yunnan Baiyao Group, and Zhiyun Health, jointly signed the “Self-Discipline Convention on Network Data Security in Healthcare” (hereinafter referred to as the “Self-Discipline Convention”). By fulfilling the requirements of the Self-Discipline Convention, these signatories aim to enhance data security assurance capabilities and foster a healthy, trustworthy, and secure network data ecosystem in the healthcare sector.

In November 2020, under the guidance of the competent industry authorities, the Internet Medical Health Working Committee of the Internet Society of China released the Self-Discipline Convention. This initiative aims to guide signatory entities in continuously enhancing their capabilities for securing medical and health network data, conducting inventories and classification grading of medical and health network data assets, implementing differentiated security safeguards across all stages of the data lifecycle, and establishing internal institutional norms and workflows for compliance assessment of medical and health network data security.

6. In the face of a trillion-yuan digital health market, how is Miao Health carving out a differentiated path?

Currently, the wave of new digital infrastructure is accelerating the transformation of the healthcare and wellness sector. Digital health platforms represented by Miao Health have seized the opportunity for industrial upgrading. Starting from health management and centering on consumers (C-end), businesses (B-end), and government (G-end), they are vigorously promoting the evolution from the “medical care + pharmaceuticals + insurance” model to the “services + products + payment” model. The broader health industry has now accumulated a sufficient foundation for digital transformation and is entering the second half of its development, themed around “digital health” rather than just “internet healthcare.” Integrating services, products, and payment has become a key factor for innovative enterprises to gain a first-mover advantage in the market. On the product side, solutions should encompass consumer-grade, medical-grade, supply chain, and health technology offerings. On the service side, it is essential to leverage advantageous resources such as medical institutions, physicians, health managers, and popular science content. On the payment side, the focus should be on innovative payment mechanisms involving social security and commercial insurance to cover the costs of products and services. In the insurance sector, Miao Health has established a long-term presence and accumulated certain advantages; its Series A financing was invested by Sunshine Ronghui Capital, affiliated with Sunshine Insurance Group, and its Series C round saw participation from the elderly care industry arm of China Pacific Insurance. Beyond mere investment, Miao Health collaborates with insurance companies to explore innovations in the “services + products + payment” model based on its digital health management services, turning many insurance policyholders into loyal users of Miao Health’s products and services. This business model is poised to break through first in the “digital health” track.

7. Weimai and Poki City Sign Strategic Cooperation Agreement to Promote the Application of “Gamified Digital Therapeutics”

Recently, Weimai and Poki City signed a strategic cooperation agreement. The two parties will integrate their advantageous resources, rely on Weimai’s Digital Therapeutics Innovation Platform, and jointly promote the application of “gamified digital therapeutics” in the full-course management of specialized diseases. They will further explore the field of “gaming + full-course management,” leveraging new technologies and methods to comprehensively improve patient adherence and treatment outcomes. According to the plan, both parties will deepen their collaboration on the application of “gamified digital therapeutics” products in the fields of Mild Cognitive Impairment (MCI) and ophthalmology, based on Weimai’s Digital Therapeutics Innovation Platform and Poki City’s technological advantages in the digital therapeutics sector. This partnership aims to connect the entire online-offline and in-hospital-out-of-hospital continuum. By incorporating gamification mechanisms into the three dimensions of prevention, management, and treatment, they seek to break through traditional bottlenecks in prevention and control, thereby comprehensively enhancing the treatment experience and outcomes for patients with Alzheimer’s disease and those with strabismus and amblyopia.

8. Heze Municipal Maternal and Child Health Hospital, Department of Women's and Children's Healthcare: Visualized Music Therapy Effectively Enhances Rehabilitation Outcomes and Quality

Rehabilitation training for autism is a prolonged process. While primarily reliant on manual interventions, “Visual Music Therapy” has emerged in recent years in China as a valuable adjunctive rehabilitation approach. Among various rehabilitation methods for children with autism, visualized music offers unique advantages as an auxiliary tool. At the Heze Maternal and Child Health Care Hospital in Shandong Province, Visual Music Therapy employs digital signal processing technology to deliver comprehensive interventions through music, animation, and lighting. By providing multisensory stimulation—visual, auditory, and kinesthetic—it aims to improve adverse physiological and psychological conditions through interactive sessions between therapists and children with special needs. This therapy is suitable for individuals with autism spectrum disorder, attention-deficit/hyperactivity disorder (ADHD), intellectual disabilities, cerebral palsy, behavioral disorders, language development delays, and hearing impairments.

II. Overseas News

1. Digital Transformation Services Company EPAM Systems Launches New Cloud-Based Digital Clinical Trial Platform for the First Time

In November 2021, digital transformation services company EPAM Systems, Inc. announced the launch of its new Digital Clinical Trials (DCT) platform. Powered by Microsoft Cloud services, this digital, patient-centric platform connects patients, clinical research organizations (CROs), and healthcare institution teams to deliver future hybrid or decentralized clinical trials through virtual, outcome-driven experiences, making them more accessible, affordable, and faster.

2. The 100Plus Remote Patient Monitoring Platform Partners with athenahealth to Provide Remote Patient Monitoring Services for Clinicians

Recently, the remote patient monitoring platform 100Plus has partnered with health technology company athenahealth through its marketplace program. As the largest EHR app store, athenahealth serves as a hub for clients to discover innovative healthcare IT solutions that extend athenahealth’s services and enable highly customized user experiences. As part of the athenahealth Marketplace, 100Plus’s RPM services are now available to athenahealth’s growing network of healthcare providers, empowering them to seamlessly establish and manage RPM programs for patients in need and generate additional revenue for their practices.

III. Policy Trends

1. Sichuan: Implement the construction of a “5G + Healthcare” remote application system to promote the establishment of smart hospitals

In November, Sichuan Province issued the “Sichuan Province 14th Five-Year Plan for Health Development” (hereinafter referred to as the “Plan”). The Plan calls for improving the standardization system for national health information, promoting standardized access of medical institution information platforms to the national health information platform, and establishing platforms for sharing clinical laboratory and medical imaging data, with a view to gradually achieving mutual recognition of health information across the province. It also implements initiatives to enhance the application level of electronic medical record systems and advance the development of smart hospitals.

Promote data sharing and operational synergy between internet hospitals and their affiliated offline physical medical institutions, providing seamless, continuous services that integrate online and offline care. Implement the construction of a “5G + Healthcare” remote application system to expand the coverage of telemedicine. By 2025, telemedicine services will cover all medical consortia, county-level public hospitals, eligible private hospitals, and primary healthcare institutions. Strive to have 60% of tertiary public medical institutions achieve Three-Star Smart Hospital status, and 20% of secondary public medical institutions achieve Two-Star Smart Hospital status.

2. Guangdong: Promote the development of “Internet + Healthcare” and telemedicine, and improve data interface standards for public health institutions

In November, Maoming City, Guangdong Province, issued the Three-Year Action Plan for “One Network Unified Management” of Digital Government and City-Level Governance in Maoming City (hereinafter referred to as the “Plan”). The Plan points out that it is necessary to improve the intelligent monitoring and early warning system for public health, strengthen multi-point trigger early warning and monitoring capabilities for infectious diseases, and enhance epidemiological investigation and management capabilities. It aims to achieve intelligent analysis and risk trend prediction for epidemic monitoring and prevention and control, health management, medical insurance fund allocation, medical resource distribution, and medical service behaviors, thereby supporting precise policy implementation. The Plan also promotes the development of “Internet + Healthcare” and telemedicine, improves data interface standards for public health institutions, and facilitates the downward flow of high-quality medical resources to the grassroots level.

3. Hubei: Vigorously advance the Hubei Health Cloud service initiative and foster new business models in health big data applications

In November, Hubei Province issued the “14th Five-Year Plan for the Development of the Service Sector in Hubei Province” (hereinafter referred to as the “Plan”). The Plan points out that telemedicine centers should be established to achieve full coverage of telemedicine services. It calls for developing new models of shared medical services and strongly supporting the development of new types of medical service institutions, such as third-party medical testing centers, medical imaging centers, pathology centers, and hemodialysis centers. The Plan also emphasizes vigorously advancing the Hubei Health Cloud Service Initiative, promoting the interconnection, integration, opening, and sharing of medical and health information systems and public health data, fostering new business formats based on health big data applications, and building a health and medical big data industrial park rooted in Hubei, radiating across Central China, and serving the entire nation. Furthermore, it supports market entities in developing and providing specialized and diversified home health services, with the aim of establishing a personalized health management service system.

IV. Investment and Financing Trends

1. Zheng'an Health Completes Tens of Millions in Pre-A Financing, Led by Qiming Venture Partners

On December 1, 2021, it was announced that Zheng’an Health had completed a Pre-A financing round worth tens of millions of RMB, led by Qiming Venture Partners, with continued participation from existing investor FSD Capital. Currently, Zheng’an Health’s AICBT-I-based sleep disorder treatment product, “Rumian,” has completed clinical trials for patients with moderate to severe conditions at Peking University First Hospital and has entered the registration phase. The company has also established collaborations with several sleep centers and internet healthcare companies. In the future, Zheng’an Health’s products will target not only individuals with psychological issues but also a broader population of 2.85 billion people encompassing mental health, suboptimal mental well-being, and mental disorders. For individuals with good mental health, the product can promptly identify emotional issues and employ positive psychological suggestions to help them maintain an upward trajectory. Additionally, its products can be applied in areas such as emotional companionship and early screening for mental illnesses. Currently, Zheng’an Health is undergoing a new round of financing, with Fan Zhuo Capital serving as the exclusive financial advisor.

2. Healthcare and Insurance Service Provider “Huiyi Health” Completes Pre-A Round of Financing, Exclusively Invested by Matrix Partners China

Recently, Huiyi Health, a pharmaceutical insurance service provider, announced the completion of its Pre-A financing round, exclusively invested by Matrix Partners China. The funds raised will be primarily used for building pharmaceutical networks, enhancing service capabilities, system development, and expanding business channels. Huiyi (Tianjin) Health Technology Co., Ltd. is an integrated service operator dedicated to innovative integration within the pharmaceutical insurance industry. It focuses on providing services such as innovative payment solutions for pharmaceuticals, corporate social responsibility initiatives, health management, and internet-based healthcare, aiming to improve multi-tiered medical security for patients, optimize patient service experiences, and promote the convergence of the pharmaceutical and insurance industries.

3. “Senmei Medical” Completes Pre-A Financing Round Worth Tens of Millions of RMB, with Changling Capital as the Sole Lead Investor

Senmei Medical recently announced the completion of its Pre-A financing round, raising tens of millions of RMB. The round was exclusively led by Changling Capital, a well-known healthcare investment fund, with Yishi Capital serving as the financial advisor. The proceeds from this financing will be primarily used for the commercialization of digital therapeutics (DTx) and team expansion.Founded in 2018, Senmei Medical is a technology-driven enterprise dedicated to collaborating with leading research-oriented medical institutions to innovate and develop digital therapeutics. In 2018, 2019, and 2020, the company launched the “SERSMED Medical-Infra Platform” for clinical medicine fundamentals, along with two DTx clinical application platforms for specific disciplines: the “DTx-Clinical for Nephrology” and the “DTx-Clinical for Rheumatology.” Currently, the platform has enrolled and managed hundreds of thousands of patients with kidney diseases and rheumatic immune disorders. It has achieved a 60% increase in the compliance rate for controlling disease risk factors and a 50% improvement in the efficiency of clinical work and research, innovatively establishing a model that delivers mutual benefits for patient outcomes and medical collaboration.

4. Health Management Platform “Boohee Health” Completes RMB 100 Million in D+ Round Financing

In November 2021, the health management platform “Boohee Health” announced the completion of its RMB 100 million Series D+ financing round, exclusively invested by Shenzhen Capital Group (SCGC). Boohee Health is a subsidiary of Shanghai Boohee Health Technology Co., Ltd., a mobile internet company focused on the health sector. Initially built on a food database and weight management tools, Boohee Health has in recent years shifted its focus to the research and development of health products and upgraded its nutritional services. Currently, Boohee Health has accumulated over 120 million registered users. The brand continues to grow rapidly, with revenue maintaining at least 100% year-on-year growth for three consecutive years, and is projected to exceed RMB 1 billion this year.

5. PharmCube Completes Over RMB 100 Million in Financing, with Exclusive Investment from Financial Data Service Provider Wind

Recently, PharmaCube, a national high-tech enterprise, announced that it had completed a financing round exceeding RMB 100 million in the second half of the year, with exclusive investment from Wind, a renowned financial data service provider. The funds will be used to support the company’s acceleration of pharmaceutical data asset integration and enhance its enterprise-level data solutions. Since its establishment in 2015, PharmaCube has remained committed to its mission of “empowering pharmaceutical innovation.” By deeply integrating “data + AI” with the pharmaceutical industry, it continuously provides the sector with convenient and efficient pharmaceutical data products and services. Leveraging a professional data standardization system and advanced data integration technologies, PharmaCube has successively established a series of pharmaceutical knowledge repositories and launched nearly ten enterprise-level data products, consistently serving close to one thousand leading pharmaceutical companies and investment institutions.

6. Digital Senior Fitness Platform Vivo Announces Completion of $1 Million Seed Funding Round

On November 24, 2021, Vivo, a digital fitness platform for older adults, announced the completion of a $1.1 million seed funding round, which included participation from prominent leaders and venture capitalists in the healthcare and longevity sectors. Vivo is an online, live, and interactive small-group strength training fitness program specifically designed for adults aged 55 and above. The program is delivered remotely, allowing users to exercise comfortably from home.

1. “Big Data in Digital Health: Lessons Learned and Recommendations for Universal Practice”

The application of big data in the healthcare sector holds immense potential, yet several obstacles remain to be overcome, such as data fragmentation, high costs, and issues surrounding data ownership. Envisioning the future role of big data in the digital health landscape requires striking a balance between the benefits of improved patient outcomes and the potential pitfall of increased physician burnout resulting from complexity due to improper implementation. Drawing on global approaches, this article proposes guidelines and regulations for data use in healthcare, with a focus on creating a unique global patient ID that can integrate data from various healthcare institutions. Furthermore, this article discusses the potential drawbacks of big data, such as the lack of diversity in big data research, as well as the security and transparency risks posed by machine learning algorithms.

2. McKinsey: “Advancing Digital Health Forward: Lessons Learned in Business Building”

Established companies in the life sciences, technology, and retail sectors, alongside thousands of startups, have flocked into the digital health market. They all seek to create value by leveraging technology to address current challenges in healthcare delivery and management. Drawing on their experience in business model innovation and venture building, the authors believe that six interconnected building blocks are essential for constructing scalable businesses. To illustrate how these elements apply to digital health, they interviewed leaders from six digital health companies, distilling their experiences into key insights and lessons learned. Specifically, this article uses case studies of six digital health startups to elucidate the strategic steps involved in building a successful digital health enterprise.

1. "BOSS on Health" | What Digital Therapeutics Segments Do Investors Favor?

Zhang Ding, Managing Partner and Executive President of Haibang Investment; Marco Ma, Managing Director of CBC Group (Kangqiao Capital); and Feng Jiawu, Managing Director of He Yu Capital, appeared as guests on “BOSS Talks Health” to jointly explore investment strategies in digital therapeutics. In addition to addressing clinical issues and having clear commercialization pathways, the composition of startup teams in the digital therapeutics space was repeatedly emphasized.

The team’s cross-disciplinary expertise and commercialization capabilities are the primary factors. As digital therapeutics in China are still in an early stage, the team’s ability to flexibly address challenges is also considered crucial. “The capability to navigate all commercialization channels—including engagement with various stakeholders across the industry chain, such as physicians, patients, and regulatory authorities—and the agility to manage these relationships flexibly are of great importance,” stated Feng Jiawu.

In the realm of digital therapeutics, it is also crucial for companies to possess robust software development capabilities; for instance, software usability directly impacts patient adherence. Regarding investment strategies for digital therapeutics, investors unanimously express their willingness to enter at an early stage and provide long-term support. After identifying a promising direction and sector, investors are committed to backing strong teams early on and are prepared to wait and continue increasing their investments despite market fluctuations.

2、Digital Therapeutics Alliance Interprets the Ten Core Principles of Digital Therapeutics Products

The International Digital Therapeutics Association (Alliance), based on global consensus within the digital health and digital therapeutics industry, has proposed ten fundamental principles that “digital therapeutics” should adhere to, namely: How to determine whether “my digital health product is a digital therapeutic?”

The ten basic principles are as follows:

1. Prevent, manage, or treat medically defined disorders or diseases

2. Software as a Medical Intervention, Measure, or Method

3. Integrate best practices in product design, manufacturing, and quality management

4. End-User Engagement in the Development and Application of Digital Products

5. Integrated patient privacy and safety protection measures

6. Best practices for product application, management, and maintenance

7. Publication of clinically significant trial results in peer-reviewed journals

8. Regulatory agencies review and approve or certify software digital products, declaring their potential risks, clinical efficacy, and intended use

9. Propose requirements that are commensurate with the clinical evaluation and regulatory status

10. Collect, analyze, and utilize real-world evidence and/or data on the product’s own performance

Disclaimer: The materials provided on this account are for general reference only, are not directed at any specific individual or team, and do not represent the views of this account.