1111.com Launches Omnichannel Commercialization Platform and Introduces Branded Drug Benefit Program

On December 1, 2019, the newly revised Drug Administration Law of the People's Republic of China came into effect. This revision marks the first major overhaul of the Drug Administration Law in 18 years. The changes introduced in this revision also signal that the pharmaceutical distribution sector is entering an era of significant transformation.

VCBeat (WeChat ID: vcbeat) has learned that on December 11, 1YaoWang, a leading Chinese internet healthcare company, held the “Technology Empowerment, Win-Win Cooperation – The 2nd China Internet Healthcare Summit & 1YaoWang Partner Conference” in Shanghai. At the conference, 1YaoWangComprehensive Upgrade of the T2B2C Strategy, it publicly proposed for the first time the creation of an omnichannel commercialization platform and launched a major benefit program for original research drugs targeting consumers (C-end), comprehensively assisting pharmaceutical companies in navigating the post-"4+7" era.

The conference attracted nearly 600 attendees, including senior and middle-level executives from renowned domestic and international pharmaceutical companies, the healthcare industry, pharmacy chains, and investment firms, as well as government officials. This marked the largest gathering of senior and middle-level executives from Chinese and foreign pharmaceutical enterprises since the expansion of the volume-based procurement (VBP) program. The conference featured in-depth discussions on topics such as the impact of the “4+7” VBP expansion and how internet technologies empower pharmaceutical companies.

In 2019, the volume-based procurement (VBP) program expanded from pilot cities to a national scale, ushering in an epoch-making transformation for the pharmaceutical industry. Standing at the new starting point of a decade since the launch of China’s healthcare reforms, how should pharmaceutical companies navigate the post-“4+7” era?

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

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

As the host, Dr. Yu Gang, Co-Founder and Executive Chairman of 1YaoWang, and Liu Junling, Co-Founder, Chairman, and CEO of 1YaoWang, comprehensively and in-depth elaborated on 1YaoWang’s omnichannel commercialization platform strategy to pharmaceutical companies at the conference.

After a year of practical exploration, 1 Drug Network has comprehensively upgraded its T2B2C strategy this year. In addition to further enriching the empowerment systems for pharmaceutical companies, pharmacies, patients, and insurance enterprises, it has added an organizational empowerment system and formally introduced a patient full-lifecycle management solution. Through comprehensive patient management services via the CRM system, precise content delivery is utilized to enhance service stickiness, improve medication adherence, and increase prescription renewal rates.

As volume-based procurement expands, the future market will be dominated by innovative drugs. The greatest challenge for these drugs lies in achieving successful commercialization. In response, 111.com has pioneered an omnichannel commercialization platform strategy.

1Drug.com leverages its integrated online-to-offline pharmaceutical and healthcare platform to help pharmaceutical companies reach pharmacies, clinics, private hospitals, community hospitals, tier-3 to tier-6 hospitals, and patients beyond major hospitals and large chain pharmacies in tier-1 and tier-2 cities, thereby providing complementary value-added services. In addition to building platform infrastructure, 1Drug.com has pioneered the creation of Shizhen, a decentralized academic promotion platform for medical representatives, aiming to drive market education for pharmaceuticals through professional content services. To date, 1Drug.com has successfully recruited 1,000 pharmaceutical sales representatives.

In addition, 111.com has launched a branded drug benefit program for consumers, aiming to empower patients, enhance medication adherence, and help pharmaceutical companies improve the accessibility of branded drugs through systematic, end-to-end operations that include physician consultations, medication guidance, online prescription renewals, and pharmacist services.

Yu Gang emphasized that 1YaoWang aims to become the preferred omnichannel commercialization platform for pharmaceutical companies and the premier healthcare service platform for patients through model innovation and the application of advanced technologies.

As volume-based procurement (VBP) expands in depth and scope across China, the pharmaceutical industry has witnessed a fierce rush among countless enterprises to secure exclusive VBP contracts. While the state has tightened access to the hospital market, it has simultaneously opened a door for pharmaceutical companies to the vast out-of-hospital market via internet channels.

At the conference, Dr. Chen Lianyong, Founding Partner and CEO of Tonghe Yucheng, and Wu Kun, General Manager of Pfizer Biopharmaceuticals Group China, delivered keynote speeches from the perspectives of a specialized healthcare investment firm and a multinational pharmaceutical company, respectively.

In the first roundtable discussion, “4+7 Deep Expansion: New Challenges and Opportunities for Pharmaceutical Companies, Terminals, and Patients,” moderator Liu Junling engaged in an in-depth dialogue with Feng Yanhui, General Manager of Eisai China; Xia Chun, General Manager of Commercial and Emerging Businesses at Sanofi China; Guo Anfeng, Vice President of the Immuno-Oncology Business Unit at BMS China; and Xin Huihao, Head of the Generics Division at Novartis Sandoz (China) Pharmaceutical Co., Ltd.

Four pharmaceutical industry guests expressed approval of 1 Drug’s omnichannel commercialization platform strategy. Feng Yanhui believes that the internet can accelerate market access for innovative drugs, and that leveraging a public platform would better enhance commercial market acceptance and user experience.

At another roundtable discussion, “Unleashing Policy Dividends: How the Internet Empowers the Upgrading of the Pharmaceutical Industry” became the focal point.

Keynote participants in the dialogue included Zhang Kai, CEO and General Manager of Manulife-Sinochem Life Insurance; Li Jinhui, General Manager of Oncology and Rare Diseases at Pfizer Biopharmaceuticals Group China; and Zhang Meng, Vice President of Tencent Healthcare.

When Chen Yang, CFO of 111.com (Yi Yao Wang), asked what improvements the internet has brought to the pharmaceutical industry, Zhang Kai stated that the internet can significantly enhance the depth, breadth, and speed of medical services. In the future, whether insurance companies, pharmaceutical firms, or healthcare enterprises, all can collaborate with 111.com to build a patient-centric service ecosystem.

Zhang Kai pointed out that, in addition to helping insurance companies manage basic pharmaceutical and healthcare services for their customers, 1Yao.com can also leverage its vast data on chronic disease patients to develop innovative products while enhancing risk control capabilities.

As the world’s most populous country, China is witnessing an accelerating shift toward an aging society, with its pharmaceutical and broader healthcare market projected to surpass RMB 10 trillion in scale. Currently, China’s healthcare expenditure accounts for just over 6% of its GDP, whereas developed countries in Europe and the United States have long exceeded 10%. This indicates substantial room for growth in China’s pharmaceutical and healthcare market.

As a leading enterprise in the internet healthcare industry, 111.com is leveraging its robust technological capabilities, efficient supply chain management system, nationwide distribution network, and comprehensive online-to-offline (O2O) channels to help pharmaceutical companies expand their out-of-hospital distribution channels and penetrate lower-tier markets.

Data shows that by the end of the third quarter of 2019, 111.com.cn had established strategic direct-procurement partnerships with 150 renowned pharmaceutical companies both domestically and internationally. 111.com.cn is becoming the preferred strategic partner for pharmaceutical companies seeking to expand their presence in the out-of-hospital market.