111Rx Leverages Digital Technology to Drive Pharmaceutical Commercialization and Explore Patient Lifecycle Management

On September 24, at the “Digital Connectivity, Technology for All” – 2020 Third China Internet Healthcare Summit & 1YaoWang Partner Conference held in Shanghai, Dr. Yu Gang, Co-founder and Executive Chairman of 1YaoWang, a leading enterprise in China’s internet healthcare sector, pointed out that over the next decade, the pharmaceutical and healthcare industry will surpass real estate and automotive sectors to become China’s largest industry, with digital technology serving as the primary driver of its rapid development.

At the conference, Liu Junling, Co-founder, Chairman, and CEO of 1YaoWang, also pointed out that as a technology company, 1YaoWang leverages digital technology to organically connect patients with pharmaceuticals and medical services. “Currently, 1YaoWang has built an ecosystem that includes pharmaceutical manufacturers, pharmaceutical distributors, pharmacies, hospitals, physicians, and insurance providers. We empower all participants within this ecosystem with technology.”

In fact, driven by national policies such as the continuous advancement of digitalization in healthcare and the normalization of volume-based procurement (VBP), the commercialization of pharmaceuticals in the new era faces both significant challenges and substantial opportunities. Against this backdrop, the innovative model of the 1 Drug Network (1 Yao Wang) platform has attracted increasing collaboration and attention from pharmaceutical companies and other institutions.

This conference, a highly anticipated summit in the pharmaceutical industry, drew nearly 600 attendees, including senior and middle-level executives from renowned domestic and international pharmaceutical companies, healthcare organizations, and pharmacy chains, as well as representatives from investment firms and government officials. On the day of the event, seven prominent enterprises—Novartis, Bayer Healthcare, Huluhwa Pharmaceutical, Xiangxue Pharmaceutical, Agilent Technologies, Yaolian Health, and Zhiye Health—entered into strategic agreements or launched joint projects with 111.com.cn (Yi Yao Wang).

Based on the aforementioned areas of contractual cooperation, the key initiatives include omnichannel pharmaceutical commercialization partnerships, strategic alliances to integrate resources across the ecosystem, and direct-to-patient services for innovative drugs. Industry observers note that 1 Drug Network is leveraging digitalization to build a closed-loop ecosystem encompassing healthcare, pharmaceuticals, insurance, and patient management. In particular, its omnichannel pharmaceutical commercialization platform strategy is facilitating the nationwide commercialization and broad market coverage of innovative drugs for an increasing number of pharmaceutical companies.

“The pharmaceutical and healthcare sector is a perpetually vibrant, evergreen industry and the fastest-growing industry in China. Over the past five years and looking ahead to the next five, the entire pharmaceutical and healthcare industry will continue to grow at an annual rate of no less than 12%. This means that within ten years, the pharmaceutical and healthcare industry will surpass both the real estate and automotive sectors to become China’s largest industry,” Yu Gang pointed out at the aforementioned conference.

Dr. Yu Gang, Co-founder and Executive Chairman of 111.com

Meanwhile, Yu Gang also pointed out that China’s pharmaceutical industry is among the most fragmented, inefficient, and pain-point-ridden sectors in the country. For instance, in the pharmaceutical distribution segment, there are 480,000 pharmacies, half of which are independent stores, while the largest pharmacy chain holds no more than 2% of the market share. The scarcity and uneven distribution of medical resources have led to difficulties for patients in accessing healthcare and affording medications.

However, with technological advancements, inefficiencies and opacity in distribution are being transformed. Technology empowerment is creating immense value for the future of this industry, marking the internet’s final disruptive impact on the pharmaceutical and healthcare sector.

Yu Gang believes that there are three irreversible trends in the pharmaceutical and healthcare sector: first, continuous population aging, with the proportion of China’s population aged 65 and above expected to double over the next 30 years; second, irreversible policy shifts, whereby prescription drugs will inevitably be made available for online sale, online medical insurance reimbursement will be rolled out across all regions, and digitalization will become universal; and third, the relentless advancement and iteration of technology, as the internet era evolves into the age of intelligence, enabling big data to provide deeper insights into customer profiles and behaviors, thereby facilitating personalized services and precision marketing for all patients.

Liu Junling, Co-founder, Chairman and CEO of 111.com

It is worth noting that as national policies continue to evolve, including the National Reimbursement Drug List (NRDL) negotiations and the normalization of volume-based procurement (VBP), the pharmaceutical industry is undergoing significant transformations, which will disrupt traditional marketing and operational models.

“For instance, policies such as zero-markup drug pricing, the two-invoice system, and caps on the proportion of drug costs have profoundly impacted the industry. Meanwhile, challenges and opportunities coexist, particularly for digital connectivity, as seen in trends like the outflow of prescription drugs from hospitals, expansion into broader markets, and direct patient–physician engagement,” pointed out Liu Junling.

At the conference’s roundtable discussion, “Digitalization: The Future of Development and Transformation in the Pharmaceutical and Healthcare Industry,” Cai Jiangnan, Founder and Executive Chairman of the Shanghai Chuangqi Health Development Research Institute; Zhang Ying, President of Novartis Pharmaceuticals (China); Ji Liwen, President and General Manager of Eli Lilly China; Mi Zihou, President of IQVIA Asia Pacific; and Jin Fangqian, General Manager of Abbott’s Pharmaceutical Business in China, discussed the development and transformation of the pharmaceutical industry in the context of digitalization. They unanimously agreed that digitalization will better help companies improve efficiency and performance.

In fact, against the aforementioned backdrop and under the three irreversible trends shaping the future of the pharmaceutical and healthcare sector, internet-based pharmaceutical and healthcare services have ushered in unprecedented development opportunities, while also facilitating the transformation of traditional pharmaceutical enterprises and enhancing convenience for patients.

Characterized by the rapid penetration of internet-based pharmaceutical services, this model enables pharmaceutical companies to quickly reach a vast market. The recent COVID-19 pandemic has highlighted the role and value of digital health and online pharmacy services, helping alleviate pressure on offline hospitals, reducing the risk of cross-infection among patients, and creating various conveniences.

In the roundtable discussion “Digital Technology Empowerment: Opportunities and Challenges in the Commercialization of Innovative Drugs,” Zhang Yuan, Founder and CEO of Wanxinhe; Mou Yanping, CEO of Allist; Li Jinhui, General Manager of Oncology and Rare Diseases Business, Pfizer Biopharmaceuticals Group China; Liu Junling, Co-founder, Chairman and CEO of 111.com; and Guo Anfeng, Chief Innovation Officer of 111.com, discussed the opportunities and challenges facing the commercialization of innovative drugs.

“Internet technology offers significant advantages, including nationwide coverage via a single network, freedom from geographical constraints, 24/7 service, an unlimited product shelf, real-time data for customer tracking and personalized services, and, crucially, the prevention of cross-infection. 111.com provides pharmacies with services such as cloud pharmacies, cloud clinics, cloud inventory, and cloud CRM, enabling us to share a portfolio of over 300,000 pharmaceutical products with partner pharmacies. Wearable devices can monitor patients’ vital signs in real time and provide timely reminders for exercise, medical consultations, and medication adherence,” Yu Gang further illustrated.

However, Yu Gang also emphasized that offline medical consultations and medication purchases remain indispensable, as they offer distinct advantages such as doctor-patient interaction, diagnostic tests including X-rays, blood draws, CT scans, and ultrasounds, and immediate access to medications. Therefore, the future will undoubtedly see an organic integration of online and offline services. This is, in fact, a key reason why 1 Drug Net has established integrated online-offline partnerships with 280,000 pharmacies across China.

It is reported that 1YaoWang went public on the NASDAQ in September 2018 and maintained a growth rate of approximately 100% for seven consecutive quarters. This achievement is attributed to 1YaoWang’s establishment of the largest virtual pharmacy network in China and even globally, with prescription drugs accounting for more than 70% of its business, thereby demonstrating the company’s professional expertise.

According to publicly available data, as of June 30, 2020, 111.com.cn had established a network covering 280,000 pharmacies across China, accounting for more than 50% of the total number of pharmacies in the country. Among these, the coverage rate in third- to sixth-tier cities exceeded 63%.

As a leading internet-based pharmaceutical and healthcare company listed on the U.S. stock market, 111.com has seized strategic opportunities in the new era of pharmaceutical commercialization, continuously enhanced its intelligent supply chain technology, established China’s largest online-to-offline integrated pharmaceutical and healthcare platform, built omni-channel pharmaceutical commercialization capabilities, and empowered the industry through cloud-based solutions, thereby becoming the preferred partner for pharmaceutical companies seeking to tap into the vast pharmaceutical and healthcare market.

David Wei, Founder and Chairman of Ally Fashion Capital, also emphasized in his keynote speech at the aforementioned conference that pharmaceutical distribution channels should undergo digital transformation from the outside in.

In fact, through digital connectivity, the number of enterprises collaborating with 111.com has also demonstrated a “triple jump” trajectory. For instance, strategic partnerships were established with just over 60 pharmaceutical companies more than two years ago, grew to more than 120 a year ago, and have now reached 259 pharmaceutical companies.

During the conference, 111.com and Guangzhou Xiangxue Pharmaceutical Co., Ltd. (“Xiangxue Pharmaceutical”) formally signed a strategic cooperation agreement. The two parties will deepen their collaboration in the “Internet + Healthcare” sector to achieve shared value from industrial chain innovation and digital exploration in the field of traditional Chinese medicine.

Under the agreement, 111.com will become an omnichannel commercial partner of Xiangxue Pharmaceutical, leveraging integrated technologies such as intelligent supply chain management, big data, digital marketing, and cloud services to help Xiangxue Pharmaceutical’s extensive portfolio of traditional Chinese medicine products expand more efficiently and penetrate broader online and offline markets.

In addition, 1 Drug Network has also signed a strategic cooperation framework agreement with Agilent Technologies (China) Co., Ltd. (hereinafter referred to as "Agilent"). The two parties will engage in in-depth cooperation in areas such as omnichannel product commercialization, online and offline service capabilities, access to end-customer resources, and the integration of business development teams.

1 Drug Network and Agilent will mutually empower each other by integrating an oncology patient-physician management platform with intelligent supply chain advantages. They will collaboratively expand into hospital and third-party laboratory endpoints in a transparent and efficient manner, jointly produce patient education content, and actively explore online-to-offline pharmacy-linked patient education initiatives to further improve patients’ health outcomes.

In addition, 111.com provides omni-channel commercialization services for a large number of pharmaceutical companies and has made significant efforts to digitize patient care services.

“We aim to build a professional, digital management platform. Our mission is to organically connect patients with pharmaceuticals and medical services through digital technology,” said Liu Junling, adding that 111.com is also collaborating with pharmaceutical companies to explore patient lifecycle management.

According to the “Healthy China 2030” Strategic Planning Outline, in response to the accelerating aging of the population and changes in disease patterns, it is necessary to significantly enhance the convenience of medication access for consumers and continuously optimize health services, thereby providing strategic guidance and direction for the development of the internet-based pharmaceutical and healthcare industry.

By co-developing high-quality digital patient education content and services, both parties will facilitate efficient communication and connectivity among patients, physicians (and pharmacists), and pharmaceutical companies. This collaboration will significantly enhance the efficiency of medical services, improve the quality of life for patients—particularly those with chronic conditions such as cardiovascular diseases and cancer—and strongly promote the establishment of a patient-centered health management service system.

Wang Lei, Executive Vice President of AstraZeneca and President of International Operations and China, pointed out in his keynote speech titled “Exploring New Development Opportunities for Multinational Pharmaceutical Companies Under the New Circumstances” that pharmaceutical companies cannot provide direct services to patients. In this context, 1Yao.com can serve as a data bridge, helping AstraZeneca better manage oncology patients.

At the aforementioned conference, Novartis Pharmaceuticals (China) and 1YaoWang jointly announced the “Silver Gathering for the Future – Psoriasis Disease Management” project, aiming to actively explore new models of collaboration in the “Internet + Psoriasis” domain.

Zhang Ying, President of Novartis Pharmaceuticals (China), stated that the pandemic has further accelerated the development of the internet-based pharmaceutical and healthcare industry. The internet not only improves access to medications but also provides great convenience for patients in obtaining medical services.

According to Yu Gang, the difficulties in accessing medical care and the high cost of medications have long been pain points for patients in China. The mission of 1YaoWang is to leverage digital technology to organically connect patients with pharmaceuticals and healthcare services. This collaborative exploration with Novartis in the field of “Internet + Psoriasis” not only meets patient needs but also aligns with the future development trends of the industry.

Furthermore, 1 Drug Network has signed a strategic agreement with Bayer Healthcare Co., Ltd. (hereinafter referred to as “Bayer Healthcare”). The two parties will engage in deep cooperation in omni-channel pharmaceutical commercialization, particularly in the commercialization of innovative drugs, specialized management of chronic diseases, and patient education, jointly exploring the vast blue ocean of the internet healthcare market in the “post-pandemic era.”

Under the agreement, Bayer Pharmaceuticals’ rich portfolio of innovative and originator drugs will leverage 1Drug.com’s omnichannel pharmaceutical commercialization platform to increase coverage in the vast markets of Tier-3 to Tier-6 cities. In turn, 1Drug.com will utilize its extensive sales network to help Bayer Pharmaceuticals strengthen its retail channel management capabilities, improve patient reach, and further promote the healthy development of the retail market.

Zhang Jingchuan, Senior Director of National Retail Management at Bayer Pharmaceuticals Division, stated that the collaboration between the two parties has fully leveraged their respective unique strengths in the medical and pharmaceutical fields, significantly improved drug accessibility, provided patients with better disease management solutions, and achieved a win-win outcome where 1+1>2.

In the future, 1 Drug Network will collaborate with more partners across the industry chain to continuously enhance its omnichannel pharmaceutical commercialization capabilities and explore comprehensive patient lifecycle management solutions. It aims to build a digital and intelligent pharmaceutical health management service platform that is patient-centric, physician-empowerment-oriented, and covers the entire process, thereby making greater efforts to fulfill its mission of organically connecting patients with medicines and medical services through digital technology.