Two Over-$100M Fundraisings Highlight Eggshell Weekly Report on May 14: Advancing Medical Consortiums to Become Key Priority

May 14, 2017 08:00 CST Updated 08:00

VCBeat Headlines

2017 White Paper on Community Chain Clinics
As more enterprises enter the community-based chain clinic sector, and guided by policies such as tiered diagnosis and treatment, the industry has attracted significant attention from capital markets and industrial players. Community-based chain clinics, serving as one of the key entry points for primary care, are highly regarded for their scalability, branding, and standardization. They are viewed as a promising solution to transform the previously unregulated and fragmented primary care clinics, becoming a coveted target in the market.
Clinic
Challenges and Opportunities for Innovative Internet Health Insurance Companies
As internet technology and its applications permeate various sectors, including finance and consumer spending, and80The emergence of an online consumer group driven by the next generation’s insurance consumption philosophy—characterized by higher education, higher income, and a younger demographic—has given rise to2015In the years surrounding that period, internet insurance startups emerged in large numbers, attempting to penetrate an insurance market characterized by complex operational technologies, high market entry barriers, and established monopolies.
Insurance
From Wild Expansion to Orderly Development: What Must Private Healthcare Address Next?
The private healthcare sector has previously undergone a period of unregulated, rampant growth, driven by a multitude of factors including the social environment, regulatory intensity, and healthcare demand. As an industry that was once relatively closed-off, shrouded in mystery, and seldom in the public spotlight, private healthcare deserves a more comprehensive and nuanced public perception. Looking ahead to the next three decades, the private healthcare sector should assume greater responsibility for medical care and fulfill broader social functions, thereby demonstrating its intrinsic value.
Private Healthcare
Coverage12Medical Subsectors: The Most Comprehensive Mainstream Mobile Health Management in the United States
VCBeat (WeChat:vcbeat) reviewed some smartphone-based health management topics discussed at the American Telemedicine Association Annual Conference and during routine telehealth business exchangesApps, covering12Category,49FundAPP. Existing mobile health and medicalAppThe application scenarios and functions are basically covered herein, followed by a brief introduction.
Mobile Healthcare
White Paper on the Current Development Status of China’s Nursing Workforce (First Edition)
This report took from project initiation to final draft.4For over a month, imperfections have been inevitable. As the inaugural public welfare initiative in China dedicated to supporting nurses, this project still requires further refinement and development. This collaboration with VCBeat (WeChat ID:vcbeat) at2017The report released during International Nurses Day also aims to draw greater attention to the professional development of nurses and encourage collective care for the nursing workforce.
Healthcare

VCBeat Viewpoint

"Three CEOs Share the Dilemmas of Telemedicine and Business Models, Far More Complex Than You Imagine"

The primary macro-level challenges affecting the telemedicine industry are identical to those facing traditional healthcare: excessively high costs and a shortage of primary care providers. (Editor’s Note: This is similar to China’s promotion of telemedicine and tiered diagnosis and treatment, where there is a lack of physicians with substantial practical experience at the grassroots level.) From this perspective, he stated that telemedicine companies can help broaden public perceptions of health management. Decker said, “We initially adopted this low-acuity business model, but now we need to start considering how to push the boundaries. How much convenience can we offer patients? This insight comes from continuous experimentation to assess user satisfaction with new technologies such as connected devices.”

He also stated, “I don’t think people are particularly excited about seeing a doctor or going to the hospital, just as I don’t believe they feel great enthusiasm about visiting a bank or a shopping mall. However, they are willing to adopt new tools for these activities. While I believe we are at the forefront of telemedicine, I think it is time to take a closer look and proactively engage with what may interest consumers.”

Viewpoint

Capital Dynamics

幻灯片5_副本.png

	Project	Business	Financing Amount	Major Investors
Domestic	Yijia Fitness	Fitness Club	40010,000 yuan	-
	Ruiji Bio	Medical Device R&D and Manufacturing Enterprise	150RMB 10,000	-
	Xuxin Medical Alliance	Medical Specialty Co-Construction Platform	30010,000 RMB	Ju Chuangzao
	Massachusetts Medical International/Meiyu Health	A Medical Service Provider Specializing in International Cross-Border Healthcare	750010,000 yuan	Fosun Tonghao
	Zetness	Zetness	140010,000 yuan	-
	ZeZhongKang	Epilepsy Specialty Disease Management Service Platform	200RMB 10,000	Beijing Yiqichuang Consulting Service Partnership (Limited Partnership)
	Haoyunbang/Mingrui Sicheng	Pregnancy and Conception App	Tens of millions of RMB	Songhe Capital,Chongshan Capital,Puhua Capital,Gene Capital

	Item	Business	Financing Amount	Major Investors
Abroad	Guardant Health	Comprehensive Liquid Biopsy Company	$360 million	TemasekTemasek,SoftBank capitalSoftBank Overseas
	OptiNose	ENT-focused pharmaceutical company	$37 million	Capital Partners,Entrepreneurs Fund
	Devicare	Developer of Home Care Technologies for Chronic Diseases	$3.3 million	ELADIET
	Clover Health	Medical Insurance Cost Control Management Software	$130 million	GV
	Treace Medical Concepts	Healthcare Cost Control	$5.9 million	-
	Devicare	Developer of Home Care Technologies for Chronic Diseases	$3.3 million	Emesa Coporacion Empresarial
	DBS System	Blood Testing System Developer	$2.5 million	Nest Collective Foundation,investiere
	Sana Health	Sleep Issue Solutions Provider	$1.04 million	-
	Endra	Provider of Photoacoustic Products and Medical Imaging Technologies	$8.4 million	-
	Conventus Orthopaedics	Orthopedic Medical Device Company	$20 million	Deerfield Management
	OptiNose	ENT-Focused Pharmaceutical Company	$37 million	Avista Capital Partners,Entrepreneurs Fund
	Aadi Bioscience	Clinical-Stage Biopharmaceutical Company	$23 million	Decheng Capital,Vivo Capital
	Territory	Nutritional Health Management	$6.7 million	Upfront Ventures
	Artemis Health	Medical Insurance Cost Control Analysis Platform	$8.3 million	-
	Good Methods Global	Dental Practice Management Software Startup	Not disclosed	Accel Partners
	Eidos Therapeutics	Small-Molecule Drug R&D and Manufacturing Company	$27 million	BridgeBio Pharma
	VoxelCloud	Tens of millions of dollars	AI Medical R&D Developer	Sequoia Capital Global

Policy Updates

Regulation Name	Date of Issue	Issuing Authority	Document Number
Notice of the Ministry of Science and Technology on Issuing the "13th Five-Year Special Plan for Biotechnology Innovation"	2017-05-11	Ministry of Science and Technology	Guo Ke Fa She [2017] No. 103
Announcement of the China Food and Drug Administration on Soliciting Comments on the “Relevant Policies for Encouraging Innovation in Drugs and Medical Devices and Reforming Clinical Trial Management” (Draft for Comments)	2017-05-11	China Food and Drug Administration	No. 53 of 2017
Supplementary Notice on the Networked Settlement and Reimbursement for Cross-Regional Medical Treatment under the New Rural Cooperative Medical Scheme	2017-05-08	National Health and Family Planning Commission
Notice of the Shenzhen Municipal Health and Family Planning Commission on Publicly Soliciting Opinions on the Standards for the Establishment of Community Health Service Institutions in Shenzhen	2017-05-05	Shenzhen Municipal Health and Family Planning Commission, Guangdong Province	Shenzhen Health and Family Planning Commission Document [2017] No. 4
Notice on Effectively Implementing and Improving Family Doctor Contract Services in 2017	2017-05-02	National Health and Family Planning Commission; Office of the Leading Group for Deepening the Reform of the Medical and Healthcare System under the State Council	National Health Commission Letter on Primary Healthcare [2017] No. 164

The National Health and Family Planning Commission Will Deepen Healthcare Reform in 2017, Implementing 70 Key Tasks Including the Establishment of Medical Consortia and the Training of 25,000 General Practitioners

According to VCBeat, on the morning of May 11, the National Health and Family Planning Commission (NHFPC) held a special press conference in May to introduce the key tasks for deepening healthcare reform in 2017. Liang Wannian, Director of the Department of System Reform at the NHFPC and full-time Deputy Director of the State Council’s Healthcare Reform Office, stated that important policy documents on healthcare reform to be formulated and issued in 2017 would mainly include 14 policy documents covering areas such as promoting the construction and development of medical consortia, establishing a modern hospital management system, and strengthening comprehensive supervision of the healthcare industry. In addition, 56 specific key work tasks will be proposed around the construction of five fundamental systems.

Conference Preview

Name	Location	Time	Fees
2017 China Primary Healthcare Innovation Practice Forum	(Crowne Plaza Chengdu Hi-Tech Zone) (No. 1, Xixin Avenue, Pi County, Chengdu)	2017-05-17	From 699
Salon Registration: Entrepreneurial Opportunities and Challenges in AI + Healthcare	(Zhangjiang High-Tech Park, Pudong) No. 585 Guoshoujing Road	2017-05-19	Free
Innovation and Transformation in the “Second Half” of Mobile Health	(Haidian) 7th Floor, Haizhi Venture Capital Building, Cyzone Demo Space	2017-05-24	Free
From Concept to Mass Production: The Medical Hardware Product Supply Chain in Practice	5th Floor, Building A1 North, No. 218 Suzhou Industrial Park (BioBAY), Wuzhong District, Suzhou	2017-05-19	Free
Pegasus Hub Hosts Pitch Event for Outstanding Startups: Mobile Health Special—Exploring Monetization Strategies in Mobile Health	(Pudong) 1st Floor, 5icenter, No. 538 Hutai Branch Road, Jing'an District, On Stage Pegasus Travel Roadshow Center	2017-05-23	Free
Hot Call for Entries: Healthcare Innovation Roadshow, Dialogue with International Pharma Titans \| DDU Connect	(Beijing Chaoyang) 22nd Floor, Tower C, Sanlitun SOHO Office	2017-05-24	Free
iiTalk Issue 30 \| Healthcare in China in the Digital Age: New Scenarios, New Behaviors, New Competition	(Huangpu) Room 2107, No. 333 Jiujiang Road	2017-05-25	Free
PR Newswire’s New Communications Tea Party (Beijing) — New Communication Strategies for the Healthcare Industry	(Dongcheng) 23rd Floor, News Tower, No. 26 Jianguomennei Avenue (Exit C of Dongdan Subway Station)	2017-05-25	Free
2017 China Smart Hospital Conference	Wuhan: Wuhan International Expo Center (Xincheng International Expo Center), No. 619 Yingwu Avenue, Hanyang District	2017-05-20	1600+
2017 (2nd) Precision Medicine and Future Medicine Conference	Hangzhou: Hangzhou Shengtai Kaiyuan Mingdu Grand Hotel, No. 297, 5th Avenue, Xiasha Economic and Technological Development Zone, Jianggan District, Hangzhou (near Wenze Road Station on Metro Line 1)	2017-05-18 2017-05-20	2200

Industry Dynamics

Hot Topics

Alipay Partners with Hundsun Yuntai to Connect 1,500 Hospitals and 15 Healthcare Startups via Its Medical Service Platform
5Month9Recently, Alipay, under Ant Financial, partnered with Hangzhou Hengsheng Yuntai Network Technology Co., Ltd. to announce the launch of a one-stop “Medical Services” platform for individual users. In addition to integrating existing services on Alipay such as appointment registration and medical consultations, users can also access health consultations, health information, maternal and child services, and health-related financial products through this platform.15Health Management Services.
Medical Insurance Payment
Merck’s PD-1 Drug Keytruda Achieves Overwhelming Victory in the Lung Cancer Field!
On May 10, Merck & Co. announced that the U.S. Food and Drug Administration (FDA) had granted accelerated approval for Keytruda (pembrolizumab) in combination with chemotherapy (pemetrexed plus carboplatin) as a first-line treatment for metastatic non-squamous non-small cell lung cancer (NSCLC). Previously, Keytruda was the only PD-1/PD-L1 inhibitor approved for first-line treatment of NSCLC; this new approval further expands its indications. From a market perspective, Keytruda has established an overwhelming advantage in the lung cancer field, far surpassing other PD-1/PD-L1 inhibitors rather than merely maintaining a slight lead.
Pharmaceuticals
CFDA Completely Abolishes Qualification Accreditation for Clinical Trial Institutions and Accepts Overseas Data
On May 11, the China Food and Drug Administration (CFDA) issued a late-night announcement to further deepen reforms in the review and approval system, promote structural adjustment and technological innovation in the pharmaceutical and medical device industries, completely abolish the qualification accreditation for clinical trial institutions, and replace it with a filing-based management system. Meanwhile, the CFDA encourages social capital to invest in establishing clinical trial institutions to provide professional clinical trial services. Additionally, overseas enterprises and research institutions are permitted to conduct Phase I clinical drug trials in China.
CFDA
Domestically Produced PET/CT Breaks the Foreign Monopoly and Competes with “GPS”
The successful maiden flight of the domestically produced C919 large aircraft and the nationwide rollout of high-speed rail—these national treasures that impact our daily lives have once again sparked our sense of national pride. In fact, similar national treasures are emerging in the healthcare industry: RaySkan’s PET/CT systems have entered the market, not only breaking the monopoly held by foreign giants “GPS” (GE, Philips, and Siemens) but also significantly reducing the price of PET/CT equipment. To explore this further, VCBeat conducted an exclusive interview with Liu Yajing, Vice President of Beijing RaySkan Technology Development Co., Ltd.
Medical Devices
Pfizer and Sangamo Sign $545 Million Agreement to Bolster Hemophilia Treatment
U.S. pharmaceutical giant Pfizer recently announced an exclusive global collaboration and licensing agreement with gene therapy company Sangamo Therapeutics to develop and commercialize multiple gene therapy programs for the treatment of hemophilia A, including SB-525, one of Sangamo’s four lead candidates, which is expected to enter clinical development in humans this quarter.
Pharmaceuticals

Listed Company

Yifeng Pharmacy	Self-built
On the night of May 9, Yifeng Pharmacy issued an announcement stating its intention to acquire the restructured Guangzhou Kangxin Pharmacy Chain Co., Ltd. (hereinafter referred to as “Guangzhou Kangxin”) at a purchase price of “RMB 66 million plus net actual assets minus the assessed value of fixed assets transferred to the new company,” thereby adding 34 retail pharmacy assets and operations in one stroke.
Yuwell Medical	Investment
On the evening of May 8, listed medical device company Yuwell Medical announced that it plans to jointly subscribe for ordinary shares issued by Amsino Medical Group Company Limited with its controlling shareholder, Yuyue Technology, at a price of $1.54 per share. The total subscription amount is $26.5474 million (equivalent to RMB 183 million). Of this, Yuwell Medical and Yuyue Technology will each contribute $13.2737 million (equivalent to RMB 91.6297 million).
Tasly	Investment
On May 9, Tasly announced that it intends to sign relevant agreements with Pharnext S.A. (“Pharnext”) and invest €20 million in Pharnext through its wholly-owned subsidiary, Tasly (Hong Kong) Pharmaceutical Co., Ltd. (“Hong Kong Tasly”). The investment includes subscribing for €5 million worth of newly issued ordinary shares of Pharnext (representing a 3.57% post-investment equity stake) and subscribing for €15 million in convertible bonds (which, upon successful conversion, would yield 1.1538 million shares, representing a 9.02% post-investment equity stake). In total, the potential equity stake in Pharnext amounts to 12.59%.
ECareHealth	Investment
On May 10, Ewell Information Technology Co., Ltd. announced that its wholly-owned subsidiary, Ewell Hong Kong, had acquired a 30% equity stake in Ewell HK for HK$6 million and simultaneously subscribed to 3 million newly issued shares of Ewell HK for HK$14 million in cash. Upon completion of the transaction, Ewell HK’s total issued share capital amounted to 7 million shares, with Ewell Hong Kong holding a 60% equity interest in Ewell HK.
Sinopharm Group	Self-built
On May 12, Sinopharm Group Pharmaceutical Co., Ltd. (Sinopharm Shares, 600511) announced in the morning that its major asset restructuring had been approved by the Anti-Monopoly Bureau of the Ministry of Commerce and the China Securities Regulatory Commission (CSRC). Sinopharm Shares has integrated four wholly-owned or holding subsidiaries under Sinopharm Holdings, and has completed all equity transfers and industrial and commercial change registrations.
Antu Biotech	Investment
On May 9, medical device listed company Autobio Diagnostics announced that it plans to sign capital increase and equity transfer agreements with Li Qiang, Song Shengli, Yang Jianguo, Kang Tiejun, and Liu Bingzhong to acquire a 75% stake in Bio-Thera Solutions. The transaction will be conducted in three tranches, with the total payment capped at RMB 203 million.
Runda Medical	Investment
On May 9, Runda Medical, a listed medical device company, announced that it would acquire 100% equity interest in Ruilai Biotechnology legally held by Fantasy Art, Blue Core, Ocean Hazel, Ruilai Hengtai, Shenzhen Ruitao, Shenzhen Qisheng, Allied Top, and WJR Company through private placement of RMB ordinary shares and cash payment, with the transaction price preliminarily determined at RMB 1.179 billion.

Frontiers of Technology

Dokchain	Medical Insurance Payment
Dokchain, the healthcare blockchain solution developed by PokitDok in collaboration with Intel, primarily functions to verify the identities of all parties involved in a transaction, identifying both consumers and healthcare providers. Furthermore, it enables “autonomous adjudication”; in simple terms, once the identities of the transacting parties are verified, transactions can be executed rapidly based on previously established contracts.
Airdoc DR	Chronic Disease Diagnosis
DR is an auxiliary analysis system for diabetic retinopathy, designed to identify and screen for the condition. With the Airdoc DR system, we can extend the expertise of our professional physicians and our diagnostic capabilities across China. This means that images captured by mobile phones or specialized instruments in any location can be transmitted to the cloud for auxiliary analysis, yielding accurate recommendations.
Watson For Genomics	Artificial Intelligence
Watson for Genomics primarily delivers personalized treatment, particularly precision medication recommendations, by analyzing patient DNA insights, reviewing scientific literature, and leveraging patient data. The product is set to enter the Chinese market within three months.
Abbott Implantable Cardiac Monitor	Heart Disease
Abbott Launches First Implantable Cardiac Monitor, Connects to Companion App via Bluetooth to Transmit Data to Cardiologists Anywhere with Internet Connectivity
Capsule Colonoscopy	Treatment Technology
Undoubtedly, colonoscopy can help maintain health through preventive screening, yet many people remain reluctant to undergo the procedure due to fear and discomfort associated with the test itself. The newly developed capsule robot enables easier examination of the gastrointestinal tract, offering benefits for both physicians and patients.
Cellular Generator	Treatment Techniques
Using a new dye developed by a Singapore-based team, Pierre Rustin of the French National Institute of Health and Medical Research (INSERM) and his colleagues measured the temperature of mitochondria within human cells. They found that when kidney and skin cells are at 38°C, their internal mitochondria can be 6°C to 10°C hotter than the rest of the cell. The related paper was recently published on bioRxiv.

In-Depth Report

Report Name	Publisher	Content Introduction
“The Two-Invoice System” Era Arrives—Seeking Survival Amidst Change, Pursuing Development Through Exploration	Deloitte Deloitte	The report reviews the evolution of the “Two-Invoice System” and its current implementation across various provinces, examines the impact of the policy on different categories of pharmaceuticals and medical devices, and provides recommendations for stakeholders along the industry chain on how to respond to these regulatory measures.
Physicians in the Driver’s Seat: How to Motivate Doctors Against the Backdrop of Improving Healthcare Outcomes and Controlling Costs?	Deloitte Deloitte	The report highlights that physicians are essential to the efficient operation of the entire U.S. healthcare system in the future. How to enhance physicians’ work motivation is increasingly drawing the attention of regulators and payers, on which Deloitte has provided recommendations.