Eggshell Weekly Report 20180729: Digital Transformation Costs Take Center Stage as Medical Devices, Hospitals, and Retail Pharmacies Accelerate Adoption

This week, digital transformation has become a hot topic. For details, see Monday’s and Thursday’s issues of “Headlines of the Week” below, as well as the article “Will All Pharmacies Be Unmanned in the Future? Alipay Partners with Dashenlin to Launch WeChat Pay-Enabled Smart Pharmacies” in “Major Industry Events of the Week.”

Monday | A ¥36 Trillion Digital Health Market: Device Giants Including GPS, Johnson & Johnson, and United Imaging Aggressively Expand from Product Digitization to Comprehensive Solutions

VCBeat predicts that the future healthcare IT industry will no longer be dominated by pure-play leaders in traditional healthcare IT, IT giants offering only peripheral or borderline products, or standalone medical device unicorns. Instead, it will be characterized by comprehensive solution providers that integrate innovation with traditional business operations (including companies specializing in industry-wide data disaster recovery and cloud security). This also implies that the healthcare IT sector, alongside the intelligent transformation of hospitals, is poised to enter a new round of competition driven by cross-industry integration.

Tuesday | Four Types of Players Strategize DTP Pharmacies, Targeting the Trillion-Yuan Market for Outflow of Prescriptions; Supply Chain, Prescription, Professional Services, and Payment Issues Remain to Be Resolved

Hospital-adjacent pharmacies, managed pharmacies, DTP (Direct-to-Patient) pharmacies, prescription-sharing platforms, and “Internet + Healthcare” models are the primary channels for accommodating the outflow of prescriptions from hospitals. Among these, DTP pharmacies warrant particular attention due to their professional services and ability to ensure the supply of new and specialized medications. This article provides a systematic review and discussion of the DTP pharmacy model.

Wednesday | "Chip"-Level Technology in the Biopharmaceutical Industry: Over Six Foreign Companies Sell in China, While Fewer Than 20 Domestic Companies Are Involved

Large-scale animal cell culture technology is a critical foundation for the development of biotechnology and has become the most formidable barrier to the industrialization of biotechnology and pharmaceuticals in China. Today, as the research and development of biologics such as PD-1 inhibitors proceeds vigorously and the market has turned into a "red ocean," the continuous maturation of these industries and their gradual commercialization will inevitably drive demand for supporting technologies, including cell culture media.

Thursday | An Article Outlines the Key Points for Building Digital Hospitals: East China Has the Largest Number Nationwide, and Patient-Centered Care Is the Trend

Only by fully leveraging digital information technology can hospitals liberate their workforce and achieve success in fierce market competition. Digitalization will accelerate innovation across various aspects of healthcare, including medical care, management, services, and institutional systems.

Friday | 11 Core Insights! How Corporate Chain Models Reach Maturity—Interpreting the Group Chain Model Through Aier Eye Hospital

The purpose of this report is to interpret how Aier Eye Hospital’s chain model has matured; to analyze the changes in its layout strategy, revenue structure, operational strategy, and management strategy across the three stages of Aier Eye Hospital’s development; and to explore how Aier Eye Hospital has standardized and replicated its successful hospital model. Ultimately, through the analysis of Aier Eye Hospital, this report aims to provide references for the chain strategic layout of all chain enterprises.

Hengrui’s 19K Officially Launched: First Long-Acting G-CSF Formulation in China to Demonstrate Superior Efficacy

On July 23, Jiangsu Hengrui Medicine Co., Ltd. (hereinafter referred to as “Hengrui”) announced the official market launch of its independently developed innovative biologic drug, pegylated recombinant human granulocyte colony-stimulating factor (peg-rhG-CSF), branded as Aiduo® (also known as 19K), for the treatment and prevention of non-myeloid neutropenia following tumor chemotherapy. Notably, pegylated rhG-CSF is an innovative biologic drug independently developed by Hengrui Medicine and represents the first long-acting G-CSF formulation in China to demonstrate superior efficacy compared with imported short-acting G-CSF products.

Are Unmanned Pharmacies the Future? Alipay Partners with Dashenlin to Launch WeChat Pay-Enabled Smart Pharmacies

On July 24, Xinhua News Agency reported that WeChat Pay, in partnership with Dashenlin, launched the first WeChat Pay Smart Pharmacy in Guangdong Province. It is understood that this smart pharmacy, jointly introduced by WeChat Pay and Dashenlin, primarily addresses customer needs in three aspects: first, cashier-free checkout with a single QR code scan; second, online ordering of traditional Chinese medicine with home delivery services; and third, technology-enabled self-service medication purchasing, featuring unmanned pharmaceutical sales services.

“Miracle Anti-Cancer Drug” PD-L1 Inhibitor “Keytruda” Hits the Chinese Market!

On July 25, 2018, Merck & Co.’s PD-1 monoclonal antibody Keytruda (application number JXSS1800002) officially received approval from the National Medical Products Administration for marketing in China, becoming the second PD-1/PD-L1 monoclonal antibody to be formally launched in the country after Bristol-Myers Squibb’s Opdivo. It is indicated for advanced malignant melanoma.

Kelun Begins to Reap the Harvest! Two First-to-File Generic Products Approved for Market Launch

On July 25, Sichuan Kelun Pharmaceutical Co., Ltd. (hereinafter referred to as “Kelun”) announced the approval and market launch of two first-to-file generic drugs: “Amino Acid and Glucose Injection” and “Fat Emulsion (10%)/Amino Acids (15%)/Glucose (20%) Injection.”

A Breakthrough in 10 Years! AbbVie’s Blockbuster New Drug Approved

On July 25, AbbVie and Neurocrine Biosciences announced that the U.S. FDA had approved ORILISSA™ (elagolix) via priority review for the treatment of women with moderate to severe pain associated with endometriosis. It is currently the only oral gonadotropin-releasing hormone (GnRH) antagonist available. Notably, ORILISSA™ is the first oral therapy approved by the FDA for this indication in a decade.

Beta Pharma Adjusts Provincial Online Listing Prices for Conmana, Reducing Price by RMB 54 per Box

On July 25, Beta Pharma Inc. (hereinafter referred to as “Beta Pharma”) announced that it had reached an agreement with the Social Insurance Administration Center of the Ministry of Human Resources and Social Security (hereinafter referred to as the “Social Insurance Administration Center”) on the price adjustment of Conmana and signed the Agreement, under which the Company committed to adjusting the provincial online listing prices of this product.

Yixintang Plans to Acquire Lingshi Dazhong Pharmacy for RMB 26.9 Million

On the evening of July 24, Yunnan Hongxiang Yixintang Pharmaceutical (Group) Co., Ltd. issued an announcement stating that its wholly-owned subsidiary, Shanxi Hongxiang Yixintang Pharmaceutical Co., Ltd., intends to purchase the assets and inventory of 21 stores held by Lingshi County Dazhong Pharmacy Chain Co., Ltd. for no more than RMB 26.9 million. Of this amount, up to RMB 19.9 million will be used to pay the store transfer fees and purchase ancillary assets (excluding inventory), and up to RMB 7 million will be used to purchase the stores’ inventory.

Starpro Medical’s Subsidiary Acquires 25% Equity Stake in Sichuan Friendship Hospital for RMB 470 Million

On July 25, Starpro Medical announced that its subsidiary, Masep, had successfully acquired a 25% equity stake in Sichuan Friendship Hospital for RMB 470 million. Currently, Masep and Shouning Guangwu Renhe Investment Partnership hold 75% and 25% of Friendship Hospital’s shares, respectively.

This Week, There Were 5 Financing Events in the Medical Field Both Domestically and Internationally。

We have clearly observed that capital is increasingly concentrating in top-tier “unicorn” companies. Our analysis suggests that this phenomenon is primarily driven by two underlying forces. First, the market’s expectation and demand for “preferential treatment” in backend exits have directed capital flows toward unicorns. Second, the rapid influx of “hot money” into the biomedical investment sector has led to the adoption of inappropriate investment strategies. We believe that the “winner-takes-all” dynamic—wherein only one company ultimately prevails within a given track, as often seen in the internet industry—does not exist in China’s biomedical sector.

(Source: VCBeat)

Headquartered in San Mateo, California, HealthCrowd is a platform provider for enterprises focused on digital patient communication and analytics.

On July 25, the company announced that it had secured $7.2 million in financing from TVC Capital. Startup Capital Ventures and Healthy Ventures, along with other unnamed firms, stated that they would continue to provide funding support to HealthCrowd.

HealthCrowd’s features include automated SMS messaging, phone calls, chat, and email delivery, with the ultimate goal of reaching a large patient population. The company’s platform analyzes patient responses across various communication channels to better identify the most effective communication methods for individual patients, thereby improving health behaviors.

Source: https://www.mobihealthnews.com

Novartis recently announced that it plans to terminate its antimicrobial research at the Novartis Institutes for BioMedical Research (NIBR) campus in Emeryville, California, resulting in 140 job cuts. Jenn Leeds, Executive Director of NIBR and head of antimicrobial discovery, stated, “The industry has reached an impasse in delivering novel antimicrobial agents to patients. The business model for antimicrobial and anti-inflammatory drugs faces severe challenges, and we continue to question whether large pharmaceutical companies can sustainably support and develop the necessary infrastructure to commercialize these therapies.” He noted that, in addition to Novartis, academic institutions and small and medium-sized enterprises can also play key roles in the discovery of new antibiotics.

Source: https://www.genengnews.com

Salomeh Keyhani of the University of California, San Francisco, and colleagues conducted a probability-based online survey to document the perceptions of risks and benefits of cannabis use among 16,280 U.S. adults.

Survey findings reveal that 14.6% of American adults used marijuana in the past year. Approximately 81% of American adults believe that marijuana has at least one benefit, while 17% consider it to have no benefits whatsoever. Pain management is regarded as the most common benefit (66%), followed by the treatment of medical conditions, including epilepsy and multiple sclerosis, as well as the relief of anxiety, stress, and depression (48% and 47%, respectively).

Approximately 91% of American adults believe that marijuana carries at least one risk, while 9% perceive no risks. Among the perceived risks, the most commonly cited are legal issues, addiction, and impaired memory (51.8%, 50%, and 42%, respectively). Overall, 29.2% of American adults agree that marijuana use can prevent health problems.

In the “Concept to Clinical Challenge,” participants were tasked with developing advanced algorithms for the detection and assessment of pulmonary nodules in CT scans, thereby translating advances in machine learning into clinical practice. Willi Gierke, a master’s candidate in IT/Systems Engineering at the Hasso Plattner Institute in Potsdam, Germany, was awarded first prize, receiving over $30,000 in prize money.

Gierke stated that in previous courses, he had used deep learning to automatically segment brain tumors in MRI scans. “Deep learning models can autonomously learn important features from the provided data, enabling them to make more accurate predictions after training.”

Source: www.healthcareitnews.com

On July 20, 2018, Analysys released its annual analysis report titled “Comprehensive Annual Analysis of China’s Internet Healthcare Industry 2018.” The year 2017 marked a watershed moment for internet healthcare. The market for light medical services primarily targeting patients, such as mobile consultations and pharmaceutical e-commerce, approached saturation. Driven by policies promoting the development of medical consortia, hospitals accelerated the cross-institutional and cross-regional flow of medical resources through informatization and digital transformation. Leveraging medical cloud platforms, industry stakeholders established medical data standards to provide foundational training for artificial intelligence, enhance algorithms, facilitate the deployment of AI products, and improve efficiency.