Xingbang Health Files for IPO After Rapid Expansion: Empowering Over 1,000 Pharmacies in Four Months with Integrated Marketing, Healthcare, and Insurance Solutions

In 2018, VCBeat and VBInsight launched a call for case studies themed “New Structure,” targeting the primary healthcare industry. The initiative focused on addressing prevalent challenges in primary care, selecting innovative practical cases in areas such as medical consortia, third-party medical services, novel clinics, chronic disease management and health management, and pharmaceutical retail. Reports on these innovative healthcare enterprises will be released sequentially—stay tuned. If your company wishes to be featured, please clickRegistration Link。 

For the pharmacy industry, this is an era of transformation. On one hand, factors such as the separation of prescribing and dispensing, the outflow of prescriptions from hospitals, and consumption upgrading are driving continuous growth in the industry’s scale. On the other hand, emerging business models—including new retail, innovative marketing strategies, and the integration of insurance with pharmaceutical retail—are overwhelming industry operators. Meanwhile, large-scale capital participation in the merger and acquisition of chain pharmacies has ushered in a “wave of IPOs” for chain pharmacy enterprises.

However, it should also be recognized that the pharmacy industry remains relatively “traditional.” It primarily serves populations within a three-kilometer radius, has a low level of digitalization, and often appears ill-equipped to adapt to emerging business models. Embracing these new models requires “new tools,” and various digital and intelligent solutions tailored to the pharmacy sector have emerged in the market, such as marketing tools, store management systems, procurement platforms, and medical service integration platforms. Even internet giants like Alibaba and Tencent have entered the space: WeChat has launched its “Smart Pharmacy” initiative, while Alipay has introduced pharmacy-focused marketing and financial services.

To serve the “new retail” model in the pharmaceutical industry, Fosun Pharma has launched the “Xingbang Health” project, providing pharmacies with a comprehensive suite of services covering marketing, healthcare, insurance, and product collaboration. The initiative aims to fully “empower” pharmacies and drive the development of new pharmaceutical retail, with the mission of “making it easy for every pharmacy to do business.” Recently, VCBeat (WeChat ID: vcbeat) interviewed Wang Hao, General Manager of Xingbang Health, to discuss emerging trends in the pharmaceutical retail sector and Xingbang Health’s strategic layout in comprehensively empowering pharmacies.

Wang Hao, General Manager of Xingbang Health Technology Co., Ltd. (Photo provided by the company)

Wang Hao previously held positions at multinational pharmaceutical companies such as Merck & Co. and AstraZeneca, where he was responsible for internet innovation and marketing. He led the development of several physician tools, professional community platforms, and applications, accumulating extensive experience in digital pharmaceutical marketing. Later, Wang joined Fosun Pharma, overseeing pharmaceutical internet operations and pre- and post-investment management. During this period, his collaborations with Li Shengli, Vice President of Fosun Pharmaceutical Industry and Co-CEO of Wanbang Pharma, sparked innovative ideas in pharmaceutical new retail operations. They recognized that retail pharmacies had a strong demand for information-based services, particularly under the impact of new retail business models. This insight gave rise to the concept of providing “empowerment” services for pharmacies.

“Some pharmacy owners have told us that the momentum behind new retail in the pharmaceutical sector is strong. They also want to launch new-retail stores but are unsure how to get started and lack viable, practical plans. Therefore, we aim to empower pharmacies by providing systematic, replicable new-retail solutions and a suite of new tools to help them upgrade their operations and drive business growth,” said Wang Hao.

VCBeat has previously outlined typical scenarios for the “Internet+” transformation of pharmacies: patients can undergo basic examinations at pharmacies and upload the results via remote consultation equipment, enabling online communication and diagnosis with physicians without having to queue at hospitals. Electronic prescriptions issued by doctors are transmitted to the pharmacy in real time, where they are reviewed and accompanied by professional medication advice. In case of drug shortages, pharmacists can submit requests directly through the backend system to pharmaceutical manufacturers or distributors, who will complete delivery as quickly as possible to ensure uninterrupted patient treatment.

Meanwhile, for patients with chronic diseases, pharmacies will be staffed with professional pharmacists to provide rehabilitation guidance and lifestyle recommendations, enabling retail pharmacies to assume certain medical functions. In terms of management, pharmacies fully mobilize employee enthusiasm, allowing management to easily monitor the operational status of frontline stores, down to the performance of individual employees.

These scenarios correspond to the “Internet+” tools for pharmacies, such as telemedicine platforms, B2B pharmaceutical e-commerce, store management tools, and marketing service tools. Xingbang Health aims to “integrate” these tools to provide pharmacies with integrated services and solutions.

Wang Hao told VCBeat that Xingbang Health will empower pharmacies by focusing on innovative medical services, precision CRM membership services, insurance services, and product services.

The Precision CRM Service Platform is a member-focused precision service platform based on customer big data, supporting multi-channel precision marketing, single-product marketing, cross-selling, and facial recognition for members. The Industrial Hybrid Sales Platform includes the introduction of industrial product varieties, sales-driven promotion, and collaborative partnerships for differentiated categories such as overseas health supplements.

Insurance services cover insured coverage for pre-existing conditions across multiple diseases and the sales of various consumer-facing health insurance products; innovative medical services include teleconsultation, e-prescriptions, remote prescription review, and AI-based fundus screening; other offerings such as micro-mall platforms, micro-official websites, staff attendance tracking, remote store inspections, and anti-theft systems support daily store operations.

Xingbang Health Service System (Photo provided by the company)

Wang Hao told VCBeat that the Xingbang Health project was launched at the end of last year. It has currently partnered with multiple pharmacy chains, covering more than 1,000 stores, and is expected to expand to over 3,000 stores by mid-year. Meanwhile, Xingbang Health has collaborated with Airdoc to launch AI-powered fundus screening services, facilitating early detection of eye diseases for pharmacy customers. Additionally, disease-specific insurance and health insurance products developed in partnership with insurance companies will be rolled out successively.

From late last year to April this year, Sinocare Health has been able to rapidly penetrate the market, with its integrated service capabilities serving as a key advantage. In addition, resources from Fosun Pharma and Fosun Group have also helped Sinocare Health expand its market presence quickly.

Wang Hao stated that the rapid rollout in pharmacies was primarily driven by a keen understanding of their needs. For instance, regarding the outflow of prescriptions from hospitals, pharmacies looking to capture this volume must address how to accept these prescriptions and whether they have the capacity to handle them effectively. If a platform can integrate medical resources, provide access to electronic prescriptions, and train staff to enhance their pharmaceutical care capabilities, pharmacies will be well-equipped to manage the influx of outpatient prescriptions.

Similarly, in terms of product and marketing services, we can facilitate the connection between pharmacies and pharmaceutical manufacturers to secure product supply, drive sales velocity, and enhance their portfolio management capabilities. Furthermore, by leveraging data analytics and member marketing management, we can improve patient adherence among store members, reduce churn rates, and comprehensively boost store performance while ensuring stable transaction volumes and repeat purchase rates.

Regarding the realization of Xingbang Health’s commercial pathway, Wang Hao stated that the initial focus will be on refining products and services, which will be offered to pharmacies free of charge. In the later stages, the company plans to gradually establish a viable business model through product distribution, software service fees, and financial products.

Overall, Xingbang Health is a “demand-driven” project that identifies needs through clear market insights and rapidly iterates its products or services to meet market demand. Its integrated “one-stop” solution facilitates the upgrading of pharmacy operations, “empowering” pharmacies to quickly replicate the new pharmaceutical retail model across China.

Technological advancement is, in itself, an ongoing process of problem-solving. In this era of “great transformation” in pharmaceutical retail, internet-based tools and platforms undoubtedly have significant room for further impact. Projects like Xingbang Health, leveraging their professional expertise and advantages in resource integration, can rapidly penetrate the market and potentially become powerful drivers of new pharmaceutical retail models.