Why Unicorns Keep Emerging in China's Medical Big Data and AI Sectors: Insights from Eggshell Weekly (20180930)

VCBeat has translated a report by CB Insights. Leveraging data from CB Insights, we will gain in-depth insights into how Amazon is leveraging its current strategy to cross industry boundaries and enter the healthcare sector.

VCBeat will explore how to leverage the valuable data from patient communities to empower upstream and downstream partners, including pharmaceutical companies, research institutions, and insurance providers, based on a review of various patient community operational mechanisms.

VCBeat Institute, starting from the market of the medical big data industry, collected information on 561 companies in China involved in healthcare big data. It sorted out these companies from dimensions such as sub-sectors, big data value, and big data applications, analyzing the development stage and current status of the medical big data industry. Through this analysis, we have derived these key data points and conclusions...

This report focuses on the research and development, application, and physician adoption of medical artificial intelligence (AI) products. We conducted surveys of leading AI healthcare companies and interviewed physicians involved in the development and/or use of AI products to present, from an industry perspective, the current state of medical AI development in China and future R&D directions. Through these field visits and surveys, we have derived the following key data and conclusions…

Over the past six months, VCBeat has interviewed numerous hospital presidents and department directors, as well as a wide range of IT, cloud computing, and hardware companies driving innovation in the healthcare sector. We also conducted on-site visits to representative innovative hospitals, including Yinchuan First People’s Hospital and Jiande First People’s Hospital. Based on these efforts, we authored the report “2018 Report on Hospital Information Technology Construction: The Leap from Integration Platforms to Big Data Applications.” Through our analysis, we have derived the following key data and conclusions…

Since the launch of VCBeat Membership, we have provided members with over 70 in-depth research reports, distributed more than 300 tickets to popular healthcare forums valued at over RMB 200,000, and facilitated partnership connections for more than 200 members. We aim to further save our members’ time by leveraging VCBeat’s research reports to deepen their industry insights, and through conference networking, to help them achieve substantive collaborations. In doing so, we strive to deliver more valuable content to our members and bridge the gap between the healthcare industry and its practitioners.

FDA Approves New Anti-Cancer Drug for the Treatment of Three Types of Lymphoma

On September 25, the U.S. FDA announced the approval of Verastem Oncology’s novel anticancer drug Copiktra (duvelisib) for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) who have received at least two prior therapies. Concurrently, the FDA granted accelerated approval for Copiktra to treat adult patients with relapsed or refractory follicular lymphoma (FL) who have received at least two prior therapies.

Zhejiang Releases Work Plan for Centralized Procurement of Anti-Cancer Drugs

On September 26, Zhejiang Province solicited public comments on the special centralized procurement plan for anticancer drugs. For products already traded online, reference prices will be set based on transaction prices, adjusted according to their tax reduction margins (no less than 4%). Bids lower than the reference price and with a price reduction equal to or greater than 60% of the average reduction will be considered provisionally winning; otherwise, the products’ eligibility for online trading will be suspended. Bid prices must not exceed the lowest provincial-level prices across China (excluding Guangdong, Fujian, Chongqing, and military regions). Strict implementation of the “Two-Invoice System” is required.

Ascletis Pharma’s New Drug GanoWei Included in Tianjin Basic Medical Insurance Reimbursement System

On September 26, Ascletis announced that GanoVex has been included in the reimbursement list of Tianjin Municipal Human Resources and Social Security Bureau’s “pilot program for capitation-based payment of outpatient medical expenses for hepatitis C under basic medical insurance.” This also marks the formal entry of GanoVex into China’s provincial-level basic medical insurance reimbursement system.

China’s Drug Prices Enter “Volume-for-Price” Era, with Price Reductions Moving into Practical Implementation

On September 26, as the pilot program for national volume-based procurement (VBP) expanded its scope and multiple provinces conducted joint negotiations for anticancer drugs, China’s pharmaceutical pricing entered the “volume-for-price” model, marking the transition of drug price reductions into practical implementation. Recently, the national centralized drug procurement pilot was officially expanded from Shanghai alone to 11 cities. The volume-based procurement approach will substantially contribute to lowering drug prices. Meanwhile, as procured drugs are required to pass the consistency evaluation system, their quality is ensured.

Two Domestic Anti-Cancer Drugs Successfully Negotiated and Included in the National Reimbursement Drug List

On September 26, during the 2018 special negotiation for the inclusion of anti-cancer drugs in the National Reimbursement Drug List (NRDL) led by the National Healthcare Security Administration, two domestically produced products—Anlotinib Hydrochloride Capsules (Fukewei) from Chia Tai Tianqing and PEG-asparaginase Injection (Aiyang) from Hengrui Medicine—successfully completed negotiations and will be included in the NRDL. These were the only two domestic products among those negotiated in this round.

First of Its Kind! Imfinzi Significantly Extends Survival in Lung Cancer Patients, Reducing Mortality Risk by One-Third

On September 26, a major piece of news broke in the industry. AstraZeneca and MedImmune announced that their immunotherapy, Imfinzi (durvalumab), significantly prolonged overall survival (OS) in patients in a Phase 3 clinical trial for lung cancer. Notably, this is the first immunotherapy to demonstrate a significant overall survival benefit for unresectable Stage III lung cancer.

Zhang Mao Appointed as Secretary of the Party Leadership Group of the State Administration for Market Regulation

On September 25, the State Administration for Market Regulation convened an enlarged meeting of its Party Leadership Group. Comrade Zhong Haidong, Director of the Fourth Bureau of Cadres under the Organization Department of the CPC Central Committee, announced the decision by the CPC Central Committee to appoint Comrade Zhang Mao as Secretary of the Party Leadership Group of the State Administration for Market Regulation.

First Hospital Affiliated with and Managed by the National Health Commission Launches "Internet Hospital"

On September 25, at the launch ceremony of Beijing Hospital’s Internet Hospital, Du Yuantai, Vice President of Beijing Hospital, introduced that the Internet Hospital primarily operates through the “Pocket Beijing Hospital” app and currently offers five core functions: text-and-image consultations, video outpatient services, remote collaboration, health education, and medical support services. Wang Jianye, President of Beijing Hospital, added that patients can also benefit from online consultations and diagnoses, electronic prescriptions, and offline medication delivery. It is reported that Beijing Hospital’s Internet Hospital is the first to go live among the 44 hospitals directly affiliated with or administered by the National Health Commission.

Putian No. 1 Hospital Launches “Airborne 120”! Emergency Care Can Now Take a “Flying Taxi”

On September 27, the Putian City “Air 120” Rescue Drill and Signing Ceremony was held at Putian First Hospital. The event was hosted by the Emergency Management Office of the Putian Municipal People’s Government, the Putian Municipal Health and Family Planning Commission, and the Putian Municipal Civil Affairs Bureau, and organized by Putian First Hospital, the Putian Emergency Command Center, the Fujian Branch of Shanghai Kingho General Aviation Co., Ltd., and the Provincial Emergency Medical Rescue Team (Putian). The initiative aims to establish a new “air-ground integrated” model for pre-hospital emergency medical rescue at Putian First Hospital, achieving seamless integration between helicopters, ambulances, and the hospital’s emergency green channel. This will expand the service radius of pre-hospital emergency care, reduce pre-hospital treatment time for critically ill patients, and provide safer and more efficient emergency rescue services to residents in Putian and surrounding areas.

China Renaissance’s Market Capitalization Exceeds HK$10 Billion; First Disclosure Reveals Over $1.7 Billion Invested in Healthcare

On September 27, China Renaissance (01911.HK) listed on the Hong Kong Stock Exchange. As the first IPO in the new economy financial services sector, it was priced at HK$31.80 per share. The stock opened this morning at its IPO price, with a market capitalization exceeding HK$10 billion.

VCBeat Hosts “Infinity” — 2018 World Forum on Medical Technology

On September 25, VCBeat, in collaboration with Eggshell Research Institute and the Industry-University-Research Cooperation Coordination Department of the China High-Tech Industrialization Research Association, will host the “Infinity” – 2018 World Forum on Medical Technology in Shanghai from September 26 to 27. The forum will bring together domestic and international medical service providers, listed companies, financial institutions, and healthcare innovation enterprises that prioritize technological innovation. Focusing on five key technologies—big data and artificial intelligence, robotics, the Internet of Things (IoT), 3D printing, and genetic testing—the event will feature eight core forums addressing three major commercialization scenarios: hospitals, pharmaceutical companies, and health management organizations.

China’s First Medical Fiscal E-Receipt Issued at West China Hospital

On September 26, West China Hospital of Sichuan University successfully issued the nation’s first medical fiscal electronic invoice, marking the official launch and operation of Sichuan’s Fiscal Electronic Invoice Management System.

Hainan Releases Implementation Plan for Reforming and Improving the Training, Utilization, and Incentive Mechanisms for General Practitioners

On September 25, Hainan Province issued the “Implementation Plan for Reforming and Improving the Training and Incentive Mechanisms for General Practitioners in Hainan Province.” By 2020, Hainan aims to basically establish a training system for general practitioners tailored to the characteristics of the healthcare industry, along with incentive mechanisms that support the development of general practice talent, achieving a ratio of 2–3 qualified general practitioners per 10,000 residents in both urban and rural areas. By 2025, this ratio is to reach four qualified general practitioners per 10,000 residents. By 2030, the workforce of general practitioners is expected to basically meet the needs of building a Healthy Hainan.

This week, there were 16 financing events in the medical field both domestically and internationally.

As an investor, when I visit well-regarded Grade 3A hospitals for medical care, I observe that many patients from remote rural mountainous areas face significant difficulties in accessing healthcare. From an investment perspective, isn’t smart healthcare currently the most pressing pain point in China?

Smart healthcare encompasses a broad spectrum. In our investment strategy, we prioritize mobile internet-based cloud platforms. We focus on leveraging tools such as telemedicine and online appointment scheduling to enable patients to require only one in-person visit for an illness. Subsequent care can be delivered through remote data transmission, remote diagnosis, and even internet-enabled smart hospitals, thereby ensuring that high-quality medical resources are made accessible to patients.

To truly realize smart healthcare, it is necessary to integrate and share resources across the entire country, including hospitals and society, as well as improve supporting measures such as regulatory policies. Another key aspect is health service management. As the aging process intensifies, public awareness of health management will continue to strengthen, leading to an increase in convenient health management services, which also represents a vast market demand. (Source: VCBeat)

Frontiers of Technology

Virtual healthcare company Teladoc Health has announced the launch of Teladoc Global Care, a virtual health service tailored for multinational corporations. Delivered through the company’s mobile application, this new offering provides remote care in more than 20 languages. The participating physicians possess the cultural competence and knowledge of local healthcare systems necessary to manage non-emergency cases across different regions. Teladoc Global Care can alleviate the burden on multinational companies in providing health benefits to expatriates, reduce costs, and enhance global healthcare services.

Source: https://www.mobihealthnews.com

On September 26, digital pathology startup Proscia announced the completion of an $8.3 million Series A financing round. The round was led by Flybridge Capital Partners, with participation from Emerald Development Managers, Fusion Fund, Razor’s Edge Ventures, and RobinHood Ventures. Proscia plans to use the funds to commercialize its digital pathology software and develop new artificial intelligence applications on a cloud platform, accelerating their deployment in cancer diagnosis. Additionally, Proscia will develop AI-powered workflow tools to help pathologists improve efficiency and enhance the research, diagnosis, and treatment of cancer.

Source: https://www.mobihealthnews.com

This report focuses on the research and development (R&D) and application of medical artificial intelligence (AI) products, as well as their adoption by physicians. We conducted surveys of leading medical AI enterprises and interviewed physicians involved in the R&D and clinical use of AI products. From an industry perspective, this report presents the current state of medical AI development in China and outlines future directions for R&D.

VCBeat Institute started from the market of the medical big data industry, collected information on 561 companies involved in healthcare big data in China, and analyzed the development stage and current status of the industry by sorting out dimensions such as sub-sectors, big data value, and big data applications.

VCBeat interviewed a large number of hospital presidents and department heads, as well as numerous IT, cloud computing, and hardware companies innovating around the healthcare sector. It also conducted on-site research at typical innovative hospitals such as Yinchuan First People’s Hospital and Jiande First People’s Hospital. Based on these efforts, VCBeat authored the report “2018 Report on Hospital Information Construction: The Leap from Integration Platforms to Big Data Applications.”