Home 111 Group Lists on NASDAQ: Does 111 Pharmacy's IPO Herald a New Spring for Medical E-commerce Investment?

111 Group Lists on NASDAQ: Does 111 Pharmacy's IPO Herald a New Spring for Medical E-commerce Investment?

Sep 16, 2018 14:06 CST Updated 14:06

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Artwork | Girl in Illness

Author |Edvard Munch

Medical History in Pictures | Issue 20180916



On the 12th (U.S. Eastern Time), 111 Group, the parent company of Yihaodian, a domestic internet pharmaceutical and health platform, was listed on NASDAQ (stock code: YI). Since then, 111 Group has become the first Chinese company in the field of internet pharmaceuticals and health to be listed in the United States.Industry insiders say that 111.com’s listing in the U.S. will kick off a wave of IPOs among pharmaceutical e-commerce companies.



This Week's Headlines


Monday | [Gobi Desert Healthcare Venture Capital Trek] 100 People, 100 Hours: Every Step Taken to “Go Further”

100 Hours, 100 Venture Investors: Journey Together to Become Lifelong Partners. If your answer is Yes, please scan the QR code to “pre-register”.


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Tuesday | Is Jack Ma Retiring? He’s Bound to Go All-In on the “Endgame” of Health!

In addition to its e-commerce operations, Alibaba Health has also drawn significant attention with its smart healthcare, product traceability, and health management businesses. The company’s smart healthcare division has developed the “Doctor You” medical AI system, which has been deployed in multiple hospitals. Building upon its original traceability capabilities, the product traceability business has incorporated additional features such as marketing and consumer engagement, attracting manufacturers of health supplements and traditional Chinese medicine patent drugs to join the platform. Meanwhile, the health management division has partnered with several smart device companies to monitor and manage user health through intelligent devices, while also expanding into the commercial health insurance sector.

 

Wednesday | Digital Innovation Fuels AstraZeneca’s “Return to Glory,” Breathing New Life into a Century-Old Enterprise

Regardless of the circumstances, AstraZeneca has maintained a high level of R&D investment and actively promoted innovation in management and business operations, with digital innovation being a key focus. As Pascal Soriot stated, AstraZeneca has consistently stood among the world’s leading pharmaceutical companies as an innovation-driven leader in science.

 

Thursday | Key Highlights: New Regulations on Internet-Based Diagnosis and Treatment Take Effect—Exploring Future Trends in the Internet Healthcare Industry Through Nine Business Strategies of Leading Companies

It is foreseeable that: first, the development of this industry will become increasingly standardized, with leading enterprises exerting a stronger demonstrative effect; second, as more companies enter the internet healthcare sector, competition will intensify, and the natural law of survival of the fittest will apply equally; third, physical medical institutions will become increasingly open, not only accepting third-party (corporate) involvement but also facilitating more frequent mobility of medical professionals, thereby breaking down the so-called “hospital walls” and enabling the orderly flow of high-quality medical resources; fourth, access to medical services will become more convenient for the public; and fifth, capital investment in internet healthcare will increase, albeit with a greater preference for projects that possess resources from physical medical institutions.

 

Friday | Apple, the Company That Changed the World, Why Is It Still Struggling to Transform Healthcare?

After carefully examining recent perspectives on healthcare innovation startups in Silicon Valley and analyzing Apple’s previous moves in the healthcare sector, we find that: 1. Whether Apple can transcend its superficial presence characterized by a “hardware + app” model in the healthcare field remains an open question; 2. The company faces many formidable obstacles in achieving its repeatedly stated ambitious goals.

 

Major Industry Events This Week

 

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Keywords: pharmaceuticals, pharmaceutical e-commerce


AliHealth Officially Announces the Activation of Drug Supervision Codes

On September 12, Alibaba Health announced in Beijing its “Super Pharmacy 1.0” standards for the new retail era. Attendees learned that the system comprises six core operational processes: global sourcing, big data-driven product selection, random inspection and review, end-to-end monitoring, drug traceability, and round-the-clock services provided by licensed pharmacists.

 

1Yao.com Lists on Nasdaq, Closing with a Market Cap of $1.143 Billion on Its First Day

On the 12th, U.S. Eastern Time, 111 Group, the parent company of the domestic internet pharmaceutical and health platform 1 Drug Network (Yi Yao Wang), listed on the Nasdaq (stock code: YI). Since then, 111 Group has become the first Chinese internet pharmaceutical and health company to go public in the United States.

 

China’s First! Enhua Pharmaceutical’s Flutrimazole Cream Receives Registration Approval

On September 13, Enhua Pharmaceutical announced that its controlling subsidiary, Jiangsu Yuanheng Pharmaceutical Co., Ltd. (hereinafter referred to as “Yuanheng Pharmaceutical”), had received the Drug Registration Approval issued by the China Food and Drug Administration for its investigational product, flutrimazole cream.

 

Measures for the Standardization, Security, and Service Management of National Health and Medical Big Data (Trial) Issued

On September 13, the National Health Commission officially released the “Notice on Issuing the Administrative Measures for Standards, Security, and Services of National Health and Medical Big Data (Trial)” (hereinafter referred to as the “Notice”).

 

The “Notice” states that, in order to strengthen the management of health and medical big data services, promote the development of “Internet Plus Healthcare,” and fully leverage the role of health and medical big data as a key national strategic foundational resource, the National Health Commission has studied and formulated the “Administrative Measures for Standards, Security, and Services of National Health and Medical Big Data (Trial),” in accordance with relevant laws and regulations.

 

Quanyuantang Implements Grid-Based Layout in Chengdu, Fully Launching 24-Hour Pharmacy Services

Recently, Quanyuantang, a leading digital healthcare services platform in China, announced that its Smart Pharmacies have achieved a grid-based layout in Chengdu’s core areas. With over 40 Quanyuantang Smart Pharmacies covering major central business districts and communities across Chengdu, the network has become a key channel for users to access integrated online-to-offline digital health management services.

 

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Keywords: Investment and Financing, Acquisition


Jinqi Medical Acquires Singapore’s SHG Group, Kicking Off Its Global Strategic Layout in Reproductive Healthcare

On September 12, Jinqi Medical signed a controlling interest agreement with Singapore’s Sincere Healthcare Group (hereinafter referred to as “SHG”) at Marina Bay Sands in Singapore. This cross-border merger and acquisition marks a significant step for Jinqi Medical in building its global reproductive health industry footprint, and represents a major strategic move following the company’s recent completion of financing amounting to hundreds of millions of yuan.

 

BI Plans $244 Million Acquisition of Oncolytic Virus Company

On September 14, BI announced that it would acquire Viratherapeutics, an oncolytic virus developer with only preclinical assets, for $244 million. Its technology platform is based on the engineered VSV oncolytic virus, VSV-GP.

 

World’s First In Vivo CTC Capture Company Delutong Raises Nearly RMB 100 Million in Series B Financing

On September 14, VCBeat exclusively learned that Hebei Delutong Biotechnology Co., Ltd. (hereinafter referred to as “Delutong”) recently completed a Series B financing round of nearly RMB 100 million. The round was led by Harvest Investment, and the proceeds will be used for subsequent product research and development, market expansion, and daily operations. Probe Capital served as the exclusive financial advisor for this financing round.

 

Following the Acquisition of Equity Stakes in Meiluo and Yali, Jiyao Holding Plans to Purchase 99.68% Stake in Puhua Pharmaceutical for RMB 618 Million

On September 13, Jiyao Holding announced that it plans to acquire a 99.68% stake in Changchun Puhua Pharmaceutical Co., Ltd. for approximately RMB 618 million, with the transaction consideration to be settled by December 31 of this year.

 

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Keywords: Biogenetics


Positive Phase 2 Clinical Results for Novel TYK2-Targeted Psoriasis Therapy

On September 13, Bristol Myers Squibb (BMS) announced that its investigational new drug BMS-986165 for the treatment of psoriasis met the primary efficacy endpoint in a Phase 2 clinical trial involving patients with moderate-to-severe plaque psoriasis. After 12 weeks of treatment with BMS-986165, the majority of patients achieved a greater than 75% reduction in their Psoriasis Area and Severity Index (PASI) score (PASI 75), with some patients achieving reductions exceeding 90% (PASI 90) or even complete clearance of lesions (PASI 100).

 

Policy Updates


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Capital Dynamics


This week, there were a total of 13 financing events in the medical sector both domestically and internationally.


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Investor Perspectives


Tasly Capital, Yan Kaijing

 

Tasly Capital predicts that massive health and medical big data will be generated around key segments such as healthcare services, medication use, and payment. Leveraging this foundation, in-depth mining of individualized needs can be conducted. By using data as the connecting link and integrating multi-party resources, cross-sector interoperability will be promoted, gradually forming a consumer-centric “4D” medical service model. This model is poised to become the core paradigm for the development of the healthcare industry over the next decade, fostering a new ecosystem within the broader health industry. (Source: VCBeat)


Industry Dynamics


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Demand Hall


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Event Preview


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Frontiers of Technology


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Apple Unveils New Apple Watch with FDA-Cleared ECG Feature


On September 13, Apple released its new-generation smartwatch, the Apple Watch Series 4. In addition to features such as fall detection with emergency calling and heart rate monitoring, the newly released product introduces an electrocardiogram (ECG) function for the first time. Within just 30 seconds, users can generate a heart rate chart with detailed data in the Health app on their iOS devices. More importantly, this feature has received clearance from the U.S. Food and Drug Administration (FDA), meaning it can provide professional medical-grade data for physician reference. This indicates that the FDA is adopting a more open stance toward emerging technologies.


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https://www.mobihealthnews.com


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Wellth Completes $5.1 Million Series A Financing to Improve Medication Adherence Through Behavioral Economics


On September 13, Wellth, a New York-based startup, announced the completion of its $5.1 million Series A financing round. The round was led by Boehringer Ingelheim’s Venture Fund and NFP’s Venture Fund, with participation from Leonard Schaeffer, CD-Venture, the Partnership Fund for New York City, and Yabeo. Wellth collaborates with insurance companies and health systems to improve patient medication adherence through behavioral economics. Using Wellth’s mobile platform, patients can earn monetary rewards by taking their medications on time each day and uploading photos as proof. This financial incentive approach effectively improves patient health outcomes while reducing hospital readmission rates and healthcare costs.


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https://www.mobihealthnews.com


In-Depth Report


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VCBeat: Data Analysis Report on the Development of China’s Health and Healthcare Sector—Nine Years of Arduous Progress Amidst the New Healthcare Reform, Bearing Abundant Fruits


2017 marked the ninth year of implementing the “New Healthcare Reform.” China’s medical and health sector has achieved certain accomplishments while also facing numerous challenges. Drawing on statistical data from the National Health and Family Planning Commission (NHFPC) between 2010 and 2017, this report provides a comprehensive review of the progress of China’s New Healthcare Reform and an overview of the development of its health sector.

 

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CHIMA: 2017/2018 Survey Report on Hospital Informatization in China


As in previous years, this year’s survey continued to employ a methodology based on publicly released questionnaires, with voluntary participation organized by provincial, municipal, and autonomous regional health commissions, as well as the CHIMA CIO Club, followed by telephone follow-ups. The vast majority of respondents were technical leaders responsible for hospital informationization (CIOs). Random stratified sampling was not used because the survey was led by a non-governmental academic organization and constrained by limited human, financial, and time resources. This approach is methodologically consistent with similar surveys conducted in many other countries around the world, such as the annual surveys and reports produced by HIMSS Analytics in the United States.