Yixu Medical Files IPO Prospectus Highlighting Government-Backed Precision Medication Consortium for Chronic Disease Management in Primary Care

On December 18, Beijing Yixu Medical Technology Co., Ltd. held a special session to unveil its new business model and strategy at the “2018 Top 100 Future Healthcare Companies Forum” – VB100 Launch Day.

At the press conference, Wang Wenjing, Chairperson of Yixu Medical, unveiled new models and strategies across four core systems: the Chronic Disease Precision Medication Service System, the Chronic Disease Information Management Platform System, the Precision Medication Insurance Payment System, and the Precision Medicine Research Collaboration System. Additionally, she announced two pilot city projects signed with local governments to jointly initiate and implement the “Chronic Disease Precision Medication Public Benefit Project.” These initiatives include developing regional medical consortia for precision medication, establishing regional ten-thousand-person gene cohorts and pharmacogenomics databases, and launching an “Electronic Pharmacist” powered by an AI-based prescription decision support system to empower primary-level chronic disease management and prevention and control of major diseases.

“Precision Medication for Chronic Diseases: Public Benefit Project” Urban Pilot Program Signing

At this new model and strategy launch event, Beijing Yixu Medical Technology Co., Ltd. clarified its short-, medium-, and long-term business models and development plans through three major innovations: pharmaceutical care service models, an information management platform, and a prescription assistance system. By establishing pilot demonstration projects in two provinces/municipalities, the company aims to implement these solutions at the primary care level, driving adoption across entire cities and even provinces. This initiative seeks to set exemplary standards for local chronic disease prevention and control, health insurance cost containment, and poverty alleviation through healthcare. By integrating medical and elderly care services via precision medication and addressing medical poverty alleviation through chronic disease management, the project aims to establish a national benchmark for healthcare innovation.

“Co-construction and Sharing, Health for All” is the strategic theme of “Healthy China 2030.” In August 2016, General Secretary Xi Jinping emphasized at the National Conference on Health and Wellness that the prevention and control of chronic diseases are the top priority in building a Healthy China.

The guiding philosophy behind Yixu Medical’s precision medication initiative is to adhere to government leadership while centering on public health and prioritizing grassroots infrastructure development. By strengthening rational drug use, chronic disease management, and the prevention of major cardiovascular and cerebrovascular diseases, the initiative aims to establish a multi-tiered, diversified innovative service system for precision medication and chronic disease prevention and control. This effort seeks to drive the transformation of clinical diagnosis and treatment toward a precision medicine model, thereby supporting local medical insurance cost containment and achieving new milestones in healthcare reform.

After more than two years of intensive development, Yixu Medical has established a project implementation framework that spans from in-hospital diagnosis and treatment to out-of-hospital follow-up, and from clinical practice to academic research. This framework not only meets the needs of clinical applications but also addresses the research requirements of experts. Additionally, an electronic medication history follow-up system has been developed to facilitate doctor-patient interaction, thereby enhancing patient adherence and satisfaction. By achieving “integrated care across in-hospital and out-of-hospital settings, with tertiary hospitals and primary care institutions jointly serving patients,” chronic disease management is no longer intangible or unmanageable.

To enable more patients with chronic conditions related to the “three highs” (hypertension, hyperglycemia, and hyperlipidemia) to benefit from technological advancements—particularly those with refractory hypertension and stubborn hyperlipidemia who have long suffered from chronic disease symptoms—Beijing Yixu Medical Technology Co., Ltd. signed urban pilot agreements with the Taihe Economic Development Zone in Anhui Province and the Hehai Subdistrict in Changzhou City at this project launch event, initiating the regional demonstration project for the “Chronic Disease Precision Medication Benefit Program.”

Taihe County, under the jurisdiction of Fuyang City in Anhui Province, was selected in December 2018 as one of the Top 100 Counties in China with the Greatest Investment Potential for County-Level Economies. As China’s largest pharmaceutical distribution hub, Taihe County boasts the highest ratio of pharmaceutical and healthcare professionals to population nationwide, laying a solid industrial foundation for establishing itself as a provincial model project for chronic disease management and medical poverty alleviation.

The latest statistical data on health-based poverty alleviation shows that Anhui Province, as a major populous province in China, ranks first nationwide in the number of impoverished patients, particularly those suffering from chronic diseases, with figures far exceeding the national average. On December 10, the “Implementation Plan for the Three-Year Campaign of Health-Based Poverty Alleviation,” jointly issued by five ministries and commissions—the National Health and Family Planning Commission, the National Development and Reform Commission, the Healthcare Security Administration, the Ministry of Finance, and the State Council Leading Group Office of Poverty Alleviation and Development—explicitly proposed focusing on poverty-stricken areas and weak links in medical services, innovating systems and transforming mechanisms, integrating prevention and treatment, and shifting focus upstream, so as to decisively win the battle against poverty through poor health and prevent people from falling into or returning to poverty due to illness.

To achieve the policy objectives of “controllable chronic diseases, preventable major illnesses, and elimination of poverty caused by illness,” Yixu Medical and the Anhui Taihe Economic Development Zone have entered into a strategic cooperation for an urban pilot project on precision medication. Leveraging Taihe County’s industrial advantages in pharmaceutical services, actively responding to the national 13th Five-Year Plan for precision medicine and chronic disease prevention and control, and fully utilizing the existing pharmaceutical industrial base and service resources of the Anhui Taihe Economic Development Zone, this initiative takes “medical poverty alleviation” as its entry point and “precision medication” as its innovation focus, elevating Taihe’s health industry to the level of national strategy.

Changzhou ranks among the top 50 cities in China for health and elderly care. Since the 13th Five-Year Plan period, the city has proposed an overall strategy for the integrated development of medical and elderly care services, established high-quality specialized districts for elderly care services, and promoted smart health and elderly care. In Hehai Subdistrict of Xinbei District, Changzhou, efforts have been closely aligned with the upgrading of the health and elderly care industry, deepening the connotation of specialized elderly care service districts, and focusing on the integrated development of medical and elderly care. In January 2018, it was successfully included in the list of innovative achievements in modern civil affairs construction in Jiangsu Province, and in December 2018, it was awarded the title of “National Pilot Demonstration Subdistrict for Smart Health and Elderly Care,” aiming to establish Hehai Subdistrict as a national benchmark for smart health and elderly care services.

Changzhou Baiyue Health and Elderly Care Exhibition Center, a subsidiary of Zhongmin Tianfu Elderly Industry Investment Group, was jointly established by the Administrative Committee of Changzhou National High-Tech Industrial Development Zone, the Haihe Subdistrict Office of Xinbei District, Changzhou City, and the China Association for the Promotion of Aging Industry under the Asia Economic Development Association. The center aims to introduce internationally advanced concepts, products, and services in elderly care, stimulate the senior consumer market, and foster international cooperation and industrial upgrading in the health and elderly care product sector.

Beijing Yixu Medical Technology Co., Ltd. will leverage the construction of the “National Smart Health and Elderly Care Demonstration Subdistrict” in Hehai Subdistrict, Changzhou City, as the project foundation, integrate industry resources from the China Asia Economic Development Association, and establish the Changzhou Baiyue Health and Elderly Care Exhibition Center as the project implementation base. The three parties will form a close strategic partnership to promote the upgrading of Changzhou’s smart elderly care industry, advance the integrated development of medical and elderly care services, and drive innovation in health and wellness services by jointly establishing a specialized medical consortium for precision medication with local governments.

In 2019, Yixu Medical will provide thousands of pharmacogenetic tests free of charge to Taihe in Anhui Province and Changzhou in Jiangsu Province. In collaboration with the local governments of these two regions, it will establish regional genetic cohort studies involving tens of thousands of participants, with clinical recruitment of patients with chronic diseases centered on the themes of “medical poverty alleviation” and “integration of medical care and elderly care,” respectively. By fostering collaboration with hospitals at all levels locally, Yixu Medical will jointly build specialized medical consortia focused on precision medication to implement individualized precision treatment for chronic diseases. Through grassroots follow-up visits and tiered diagnosis and treatment, the initiative aims to improve the rate of adherence to chronic disease treatment targets and effectively control the incidence of major cardiovascular and cerebrovascular diseases.

Yixu Medical Signs City Pilot Agreement with Local Government to Launch Precision Medication Public Benefit ProjectBeijing Yixu Medical Technology Co., Ltd. has signed a city-level pilot agreement with the local government to jointly launch the Precision Medication Public Benefit Project, implementing personalized medication management for patients with chronic diseases. Beyond clinical benefits, this initiative carries significant social and economic implications. In the short term, it reduces medication and treatment costs while improving patient satisfaction. In the long term, the true economic value of chronic disease management lies in effective control that prevents the progression to severe conditions. This translates into health-related well-being for individuals and families, alleviates the societal burden of poverty caused or exacerbated by illness, and reduces high healthcare insurance expenditures for critical and severe diseases borne by the government. Achieving such multi-party win-win outcomes may simply stem from “taking the right pill.”

In the future, Yixu Medical will launch a closed-loop chronic disease management service with insurance payment involvement, targeting elderly patients with multiple underlying chronic conditions and low-income individuals suffering from chronic diseases. Starting with genetic testing, integrating clinical pharmaceutical services, conducting home follow-ups via smart monitoring devices, and covering four scheduled annual follow-up visits through commercial insurance, this model aims to achieve continuous, whole-course management for chronic disease patients.

Of course, the emergence and widespread adoption of any new technology or method require time. To enhance clinicians’ and patients’ trust in and acceptance of pharmacogenomic testing, Beijing Yixu Medical Technology Co., Ltd. partnered with ZhongAn Insurance in May 2017 to pioneer China’s first “Medication Testing Liability Insurance,” providing safeguard for physicians’ prescriptions. Should prescription errors leading to treatment complications arise due to incorrect genetic test results, the insurance company assumes responsibility for compensation. Currently, Beijing Yixu Medical is the only company in China that offers insurance coverage for physicians who use genetic testing reports to guide prescription decisions.

The most intractable issue in the current imbalance between medical supply and demand is the long-standing perception among patients that “tertiary Grade A hospitals are superior in every aspect, while primary care institutions are inadequate.” The introduction of the tiered diagnosis and treatment system, as well as the focus of the medium- to long-term plan for chronic disease prevention and control, lies in how to retain chronic disease patients at the primary care level and ensure effective and standardized management. However, merely assigning specialists from tertiary Grade A hospitals to work at the grassroots level or enhancing the competencies of primary care physicians offers only temporary symptomatic relief rather than a fundamental cure in the short term.

To address this pain point, Yixu Medical will launch an innovative “Electronic Medication History + Electronic Pharmacist” model in pilot areas across two cities, leveraging the Precision Medication Medical Consortium as a platform to design information-based application scenarios tailored to the needs of primary care chronic disease management:

Short-term synchronization, aggregation, and retrieval analysis of personal genetic data, clinical visit data, and follow-up data can be achieved;

In the medium term, remote consultations and two-way referrals for difficult cases and complex medication regimens can be integrated, enabling data alerts and emergency responses for critical conditions such as sudden stroke in patients with chronic diseases;

Long-term expansion of data volume and continuous training on foundational datasets will enable the application of artificial intelligence technologies in prescription decision support and companion diagnostics for common chronic diseases at the primary care level.

By collaborating with local governments to co-establish specialized medical consortiums focused on precision medication, Yixu Medical will build regional pharmacogenomics databases for chronic diseases. The company is committed to equipping every primary care physician in pilot urban areas with an AI-powered e-pharmacist. In this system, physicians need only input patients’ clinical information and genetic data, and the AI e-pharmacist will automatically calculate the most appropriate medication regimen for the physician’s reference.

In the future, Yixu Medical’s “Electronic Pharmacist,” powered by artificial intelligence and machine learning, will replicate the extensive clinical cases and expert-prescribed regimens from tertiary hospitals for every primary care physician, bringing precision medication to the grassroots level and into households across the nation.