Ping An Good Doctor and China Resources Sanjiu Announce Strategic Partnership to Advance Pharma New Retail

VCBeat (WeChat: vcbeat)It is reported that on September 7, China’s leading one-stop healthcare and medical ecosystem platformPing An Good Doctor(01833.HK) andChina Resources Sanjiu Medical & Pharmaceutical Co., Ltd.(hereinafter referred to as “China Resources Sanjiu”) have entered into a strategic cooperation agreement. The two parties will integrate their respective advantageous resources, leveraging Ping An Good Doctor’s leading AI healthcare technology and massive user base, combined with China Resources Sanjiu’s product strengths in the OTC and prescription drug sectors, to jointly build a new “Internet + Healthcare” business model. This collaboration aims to enhance the medical service capabilities of both parties while promoting the deep integration of mobile internet and the healthcare industry.

Strategic Cooperation Agreement Signing Ceremony

China Resources Sanjiu is a large state-controlled listed pharmaceutical company primarily engaged in the research and development, manufacturing, and sales of pharmaceutical products, as well as related health services. Its core business is focused on over-the-counter (OTC) medicines and traditional Chinese medicine (TCM) prescription drugs. The company’s flagship OTC products hold significant market shares in therapeutic areas including cold and flu, gastrointestinal disorders, dermatology, pediatrics, liver diseases, cough suppression, and orthopedics. Its prescription drug portfolio ranks among the leading positions in the domestic market in fields such as TCM formula granules, cardiovascular and cerebrovascular diseases, oncology, and anti-infectives. Brands under its umbrella, including “999,” “Essentiale” (Yishanfu), “Lixuwang,” “Shunfeng,” and “Tianhe,” enjoy high reputation and influence within China’s pharmaceutical industry.

Ping An Good Doctor is China’s leading one-stop healthcare ecosystem platform. Leveraging globally leading AI-driven medical technology, it integrates its in-house medical team of thousands of professionals, externally contracted physicians, and offline medical network resources to create a closed-loop service model that combines online consultations with online medication purchases, as well as online consultations with offline medical visits. To date, it has established partnerships with over 3,100 hospitals (including more than 1,200 Tier-3 Grade-A hospitals), over 2,000 health institutions such as physical examination centers, dental clinics, and medical aesthetics providers, and more than 10,000 pharmacies.

Nowadays, against the backdrop of “Healthy China” being elevated to a national strategy for the first time and “Internet + Healthcare” becoming a key lever in national healthcare reform, the integration of internet-based healthcare with traditional brick-and-mortar medical entities has become one of the major trends in the healthcare industry. Ping An Good Doctor and China Resources Sanjiu have entered into a strategic partnership, under which both parties will engage in deep integration across areas such as new pharmaceutical retail, revitalization of traditional Chinese medicine, medical artificial intelligence, family doctor services, marketing promotion, and health-focused poverty alleviation.

Under the agreement, both parties will engage in deep cooperation in the field of new retail pharmaceuticals, leveraging Ping An Good Doctor’s proprietary internet hospital, medical team, and online healthcare traffic, while capitalizing on China Resources Sanjiu’s product and brand strengths in the pharmaceutical sector. This collaboration aims to establish a closed-loop service encompassing consultation, prescription, product supply, and delivery, thereby providing users with a more comprehensive healthcare experience.

In the collaboration to revitalize Traditional Chinese Medicine (TCM), both parties will focus on online TCM wellness and healthcare. Leveraging Ping An Good Doctor’s big data and user profiling, they will explore new models of “Internet + TCM Healthcare” and “Internet + Chronic Disease Management,” jointly promoting the standardization of TCM and expanding the user market for TCM products and services. Furthermore, in terms of user acquisition, both parties will coordinate resources to conduct online and offline market expansion and cross-brand promotion, thereby increasing the reach of their products and enhancing user stickiness.

Ping An Good Doctor is China’s leading one-stop healthcare ecosystem platform, committed to providing every family with a family doctor, every individual with an electronic health record, and every person with a personalized health management plan through its “Mobile Healthcare + AI” model. Currently, Ping An Good Doctor has established key business segments including family doctor services, consumer healthcare, the health e-commerce mall, health management, and health engagement.

As of the end of June 2018, Ping An Good Doctor had accumulated 228 million registered users, with 48.6 million monthly active users at the end of the period, making it the most widely used mobile healthcare application in China. Ping An Good Doctor employs an in-house medical team of over 1,000 professionals, has contracted with 4,650 external renowned physicians (all holding the title of associate chief physician or above at Grade A tertiary hospitals), and engages tens of thousands of other externally contracted doctors. Empowered by AI technology, the platform provides users with auxiliary diagnosis, rehabilitation guidance, and medication advice through 24/7 online consultations. It also collaborates with more than 3,100 offline hospitals (including over 1,200 Grade A tertiary hospitals) to facilitate subsequent triage and referrals, as well as initial offline consultations and follow-up visits.

Meanwhile, Ping An Good Doctor covers more than 2,000 health institutions, including physical examination centers, dental clinics, and medical aesthetics facilities, as well as over 10,000 pharmacies, forming a service loop that integrates online consultations with online medication purchases and online consultations with offline medical visits.

In April 2015, the “Ping An Good Doctor” app was officially launched. In May 2016, Ping An Good Doctor completed a $500 million Series A financing round. In December 2017, it secured a $400 million Pre-IPO investment from SoftBank Vision Fund, under Masayoshi Son. On May 4, 2018, Ping An Good Doctor was listed on the Hong Kong Stock Exchange under the stock code 01833.HK, earning the title of the world’s first internet healthcare IPO.