VB Weekly Report 1221: Internet Healthcare Highlights and Product Updates
———Events & Perspectives———
Recently, numerous rankings such as “China’s Top 10 Internet Celebrities of 2015” and “Top 10 Chinese Husbands of the Year” have emerged. Judging by the trend, they seem poised to surpass even the famed Chaoyang Masses in their zeal for public scrutiny. This editor has nothing more to add; feel free to engage as you wish, but please remain rational! Those of you who spend all day being brainwashed by your screens (and workplaces) should refrain from joining in. Just tap here with your fingertips...
“Official Website of the 2015 Internet Medical & Health Power List”
“Official Website of the 2015 Internet Healthcare & Health Rankings”
“Official Website of the 2015 Internet Healthcare & Health Industry Leaders List”
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Alright, I’ll stop here. Saying too much might raise suspicions of advertising...
Speaking of which,Two major events took place in the internet healthcare sector last week, one in Wuzhen, Zhejiang, and the other in Shenzhen, Guangdong.
Wuzhen, Zhejiang, gained prominence with the hosting of the Second World Internet Conference. In his opening remarks, President Xi Jinping specifically mentioned “online hospitals” right from the start. For those of us immersed in this new internet-driven ecosystem, the news was utterly exhilarating—our cells seemed to dance with joy, swimming happily through the water.
In Shenzhen, Guangdong, a physician group consisting of seven doctors was listed on the New Fourth Board at the Shenzhen Stock Exchange (Qianhai Equity Exchange Center).
Thus, the two buzzwords “Mingyi Hui” and “New Fourth Board” set WeChat Moments ablaze.
Most strikingly, "Mingyi Hui" took only about three months from financing to listing.
Amidst such explosive news, the industry was thrown into an uproar.
According to corporate business information records, the figure of RMB 100,000 in the registered capital column catches the eye. That’s right—just one hundred thousand yuan. The whole amount!
Two days after the announcement of the establishment of “Mingyi Hui,” the company’s person in charge revealed that intended financing commitments had exceeded RMB 60 million.
This is truly a case of “the barefoot are not afraid of those wearing shoes,” as the saying goes.
A representative from a well-known physician group stated:Physician groups that neither provide clinical care nor perform surgeries, but instead engage in capital maneuvering and hype concepts, will not go far.
Alright, stay calm. Let’s now see who made the list of last week’s top highlights.
The Most Direct Approach—No Frills, Straight to Market
China’s First Internet Healthcare Company Lists on the New Third Board.
On December 15, Jiuyi 160, with appointment registration services as its entry point, officially listed on the New Third Board, marking the formal emergence of China’s first true internet healthcare stock. Jiuyi 160 has now expanded its business to more than 200 cities across China, serving 1,788 hospitals, and is rapidly replicating its mature Shenzhen model nationwide.
Industry insiders stated that the profitability models of China's current internet healthcare sector are still in an exploratory phase. For JiuYi160 to achieve better future development, it needs to further integrate hospital information flows and service flows.
Focusing on Pharmacy Automation, Fengshen Medical Technology Lists on the Shanghai Equity Exchange.
On December 16, the OTC-E board listing ceremony of Fengshen Medical Technology Co., Ltd., a company dedicated to the research, development, and production of pharmacy automation equipment, was held at the Shanghai Equity Custody and Trading Center.
Following its listing, Fengshen Medical will further strengthen internal management and optimize resource allocation, striving to achieve leapfrog development, thereby advancing the deployment and promotion of smart healthcare solutions in community hospitals.
Wuhan Molian Lists on the NEEQ, to Focus on Commercial Health Insurance Business.
On December 17, the National Equities Exchange and Quotations (NEEQ) announced that Wuhan Molian Co., Ltd.’s application for listing had been approved, making it the first medical payment company to go public.
It is reported that the company will continue to strengthen its three core business segments—existing smart hardware, medical payment solutions, and in-hospital non-medical service platforms—with a focus on deepening expertise, enhancing quality, and expanding scale. The company also stated that businesses related to commercial insurance will be a key strategic focus in the near term.
The Most Romantic—It’s Not About Being Afraid to Show Off Your Love, But About Not Being Able To
Ping An Bank stands out in this regard, having first successfully partnered with WeDoctor Group on December 14., jointly explore the creation of family health accounts for WeDoctor users, integrating three core functions: medical consultation, payment settlement, and financial services.
Four days later,Joining Hands with Ping An Good Doctor in the Spotlight Again, the two parties agreed to engage in comprehensive, in-depth cooperation across all segments of the health industry chain, including health management, medical care assistance, and health insurance, and to further deepen their collaboration in integrated financial services such as payment settlement, online banking, and investment and financing solutions.
Truly, the actions were remarkably swift, with ambitions clearly on display.
Yuwell Medical Partners with 37 Health to Launch a New Model of “Smart Home Health”
Yuwell Medical recently announced a partnership with Blood Pressure Steward. Yuwell Technology, the controlling shareholder of Yuwell Medical, has completed its capital injection into Blood Pressure Steward. The two parties will jointly launch smart blood pressure monitors and co-create an intelligent home health service platform.
Yuwell Technology’s investment in 37 Health marks another exemplary case of a traditional manufacturing enterprise partnering with a mobile internet platform.
Pursuant to the strategic cooperation agreement between the two parties, Yuwell Technology will provide hardware technical support to 37 Health, a company focused on developing a chronic disease management platform for hypertension. In return, 37 Health will deliver health service support to Yuwell’s blood pressure monitor users, including daily blood pressure management, health consultations, and appointment scheduling. This strategic partnership will usher in a new model of “Smart Home Health.”
The Wealthiest—Having Nothing but Money
Wonders Information Acquires Jiada Technology for Nearly RMB 1 Billion, Doubling Down on “Internet + Healthcare”
On December 14, Wonders Information issued an announcement stating that it plans to issue 43.24 million shares to the counterparties at a price of RMB 22.99 per share to acquire a 99.4% equity interest in Shanghai Jiada Information Technology Co., Ltd., with a preliminary valuation of RMB 994 million. Wonders Information previously held a 0.6% equity stake in Jiada Technology. Meanwhile, the company intends to issue shares at RMB 22.99 per share to raise matching funds of no more than RMB 994 million.
According to the query,Jiada Technology was established on November 25, 2015, with an initial registered capital of RMB 600 million.. Jiada Technology’s primary assets currently consist of long-term equity investments in companies operating within the “Internet + Healthcare Services” sector.Since its establishment, Jiada Technology has successively acquired equity stakes in Siwei Medicine and Quancheng Health., as the sole party to publicly acquire equity in Yaogu Pharmaceutical, and plans to further invest in establishing a cloud business subsidiary based on the successive winning of bids for government cooperation projects across various regions. Meanwhile, Jiada Technology intends to utilize existing shareholder contributions and future raised matching funds to carry out the construction of the "Health Cloud" and "Medical Cloud" projects, further consolidating and developing the company's advantages and position in the "Internet+" healthcare sector.
Wanda Information stated that this acquisition will enable the company to build a one-stop medical, pharmaceutical, health insurance, and healthcare service platform with strong user stickiness through cloud services. By accumulating and analyzing health data, the company will further expand its business market space and business model, which is conducive to achieving sustained and rapid growth in performance.
It has to be said that the editor’s favorite type of news is this kind. Why?
Wuxi’s First Foreign-Invested General Hospital Officially Settles In, with a Total Investment of $100 Million.
On December 17, Wuxi Kaiyi Hospital, the first foreign-owned general hospital in Wuxi, was officially established. Upon completion, the hospital will offer services across 17 departments, including General Practice, General Surgery, Internal Medicine, Ophthalmology, Otorhinolaryngology, Gynecology, Obstetrics, Pediatrics, Orthopedics, Stomatology, Dermatology, Health Management, and Rehabilitation Therapy. The hospital is expected to be completed and commence operations by the end of 2017.
It is understood that,Wuxi Kaiyi Hospital was established with investment from the U.S.-based Columbia Pacific Group., is the first general hospital established in China by Columbia Pacific Management Group. According to available information, Columbia Pacific Management (CPM), headquartered in Seattle, USA, is the largest assisted living and healthcare investment group in the United States, with over 40 years of experience in investing in and operating elderly care facilities and high-end international hospitals within the healthcare industry.
What the editor wants to ask is: Have you had any drinks at the table?
Remember, you must drink alcohol; otherwise, you won’t be down-to-earth.
Chongqing Medical University Invests RMB 3 Billion to Build a Medical and Elderly Care Center.
It is reported that the strategic cooperation between Chongqing Medical University and Changshou District primarily involves: jointly advancing the construction of the Changshou Medical and Elderly Care Center affiliated with the Third Hospital of Chongqing Medical University; engaging in comprehensive collaboration in areas such as health sector planning, allocation of medical resources, and inter-institutional partnerships; assisting medical institutions in Changshou District in enhancing their capabilities in clinical care, teaching, and scientific research; vigorously supporting the professional development and training of personnel at medical institutions in Changshou District; establishing talent training bases; and actively promoting and guiding graduates of Chongqing Medical University to seek employment in Changshou District.
The Changshou Medical and Elderly Care Center Project of the Third Affiliated Hospital of Chongqing Medical University primarily involves the construction of a rehabilitation hospital, an elderly care center, an obstetrics hospital, and supporting service areas.A non-profit, high-quality, high-standard medical and elderly care center integrating medical and healthcare services, with a planned total investment of approximately RMB 3 billion.
Fosun Pharma invests in Qilu Hospital.
On the evening of December 16, Fosun Pharma announced that its wholly-owned subsidiary, Fosun Hospital Investment, and Qingdao Industrial Investment plan to jointly establish Qingdao Shandong University Qilu Hospital Investment Management Co., Ltd. The new company’s registered capital is preliminarily set at RMB 800 million, with Fosun Pharma contributing RMB 400 million in cash.
Pursuant to the agreement, Qingdao Industrial Investment and Fosun Hospital Investment will each subscribe RMB 400 million in cash to establish Qilu Medical Management. The new company will be responsible for the construction of Phase II of the Qilu Hospital of Shandong University in Qingdao, as well as the establishment and operation of Qingdao Chengxing Hospital (provisional name). The Phase II campus in Qingdao will be constructed in accordance with the standards for tertiary hospitals. Upon completion, it will be leased by the new hospital to serve as the facility for its medical services. The new hospital is intended to operate as a non-profit medical institution, with a planned capacity of approximately 1,600 beds. Fosun Pharma will account for its investment using the equity method.
Previously, Fosun Pharma had consecutively acquired multiple private hospitals and collaborated with public hospitals in Taizhou to explore new models of integrated medical and elderly care.
Most Grounded—Boredom Is an Illness, Labor Is Most Glorious
Medtronic and Samsung Join Forces to Develop Neuromodulation Implantable Apps for Smart Devices.
Following the launch of a portable smart device for diabetes management developed through their partnership in June this year, the two companies have recently unveiled an implantable app for neuromodulation, offering solutions for chronic pain, movement disorders, incontinence, and other conditions.
This solution enables doctors and patients to more conveniently manage treatment regimens, track symptoms, and wirelessly monitor data using Android smartphones and tablets. Typically, neuromodulation devices rely on dedicated controllers, and the processes for downloading, analyzing, and sharing device-related data are highly complex. The original intent of this design is to allow the two companies to better streamline these procedures.
It is reported that in the last quarter of this year, Medtronic’s neuromodulation segment generated $485 million in revenue, representing a slight year-over-year increase. Although this segment falls under Medtronic’s Restorative Therapies portfolio, it remains the weakest performing business unit within that division. More substantial growth was driven by the Neurovascular and Surgical Technologies segments. A key highlight for Medtronic in the neuromodulation space is its deep brain stimulation (DBS) devices.
The Smartest—Standing on the Shoulders of Giants
Huawei Makes a Strong Entry into Mobile Healthcare.
On December 14, 2015, at the China Mobile Global Partner Conference, Huawei not only launched multiple flagship products but also, together with its partner Xinlianda, unveiled six major industry solutions, including 4G healthcare, mobile finance, smart communities, and interactive education.
Xinlianda is a leading enterprise in the field of mobile healthcare, with its medical “Internet+” solutions implemented in over one hundred large hospitals. Huawei has partnered with Xinlianda to launch a hospital 4G “Internet+” solution, integrating typical applications such as mobile physician stations, mobile nurse stations, and mobile doctor-patient communication.
This approach is entirely sound, as it first and foremost captures the core of healthcare.
The Biggest Headache—Whether It’s Good or Not Depends on the Efficacy
31 Cities, Including Beijing and Shanghai, Pilot Tax-Deductible Commercial Health Insurance
According to a report by “World Finance” on Economic Voice, the Ministry of Finance, the State Administration of Taxation, and the China Insurance Regulatory Commission recently issued a notice stating that, effective January 1, 2016, a pilot program for individual income tax policies related to commercial health insurance will be implemented in 31 cities, including Beijing, Shanghai, Tianjin, and Chongqing. In the pilot areas, expenditures incurred by individuals for purchasing qualified health insurance products will be deductible from taxable income, subject to an annual cap of RMB 2,400.
Commercial health insurance refers to health insurance products developed by insurance companies in accordance with the Guideline Framework and Model Clauses for Tax-Advantaged Individual Health Insurance Products (see Appendix) that meet specified conditions. Based on differences in existing coverage and insurance needs among target populations, there are three categories of compliant health insurance products, applicable respectively to: 1. individuals who wish to be reimbursed for out-of-pocket medical expenses remaining after reimbursement under public healthcare programs or basic medical insurance; 2. individuals who wish to be reimbursed for specific high-cost out-of-pocket medical expenses remaining after reimbursement under public healthcare programs or basic medical insurance; and 3. individuals not enrolled in public healthcare programs or basic medical insurance who wish to be reimbursed for their out-of-pocket medical expenses.
——VCBeat Exclusive——
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——Healthcare Reform——
★Shenzhen: No Revenue-Generation Targets to Be Assigned to Departments or Physicians
The “Guiding Opinions on the Evaluation of Health Professional and Technical Personnel in Medical Institutions in Shenzhen,” jointly signed by the Shenzhen Municipal Health and Family Planning Commission and the Shenzhen Public Hospital Management Center, has been publicly released. The initiative aims to create a favorable working environment for physicians, enabling them to devote greater energy to clinical diagnosis and treatment. Going forward, the evaluation of medical personnel’s professional competence in Shenzhen will no longer be based on the number of published academic papers, but rather on their clinical practice capabilities. Shenzhen will establish a sound evaluation system for health professional and technical personnel, centered on technical proficiency and medical ethics, and characterized by industry self-regulation as well as scientific fairness and impartiality.
★MOHRSS: To Abolish Qualification Review for Designated Medical and Pharmaceutical Institutions
On the 14th, the Ministry of Human Resources and Social Security announced that by the end of 2015, the qualification review process for designated medical and pharmaceutical institutions, implemented by social insurance administrative departments in pooling regions, would be completely abolished.
A relevant official from the Ministry of Human Resources and Social Security stated that this signifies a shift from the previous “two-step” process—where designated medical and pharmaceutical institutions underwent qualification review by administrative authorities before signing designated service agreements with handling agencies—to a streamlined “one-step” approach, wherein handling agencies directly enter into service agreements with eligible medical and pharmaceutical institutions.
It is understood that there are currently more than 300,000 designated medical and pharmaceutical institutions for urban basic medical insurance across China, which basically meet the needs of insured individuals for medical treatment and medication purchase.
———Data———
★The Global Wearable Device Market Surged to $17 Billion in 2022
According to estimates from research institutions, the market size of wearable devices is expected to reach $16.8 billion by 2022.
According to the data provided in the report, it is no surprise that diagnostic and monitoring devices have become the absolute mainstay of the wearable device market, accounting for more than 70% of the total market share. However, although diagnostic and monitoring devices dominate the wearable device sector, wearable therapeutics has emerged as the fastest-growing segment within this field, with investigators projecting a rapid expansion at an annual growth rate of 23%.
Furthermore, wearable devices will also play a significant role in analgesic therapy.
However,According to statistics, the majority of wearable device products still rely on smart bands and smartwatches.
This also indicates that,
★The Immunotherapy Market Will Exceed $74.2 Billion in 2022
Global Business Intelligence (GBI) has released its latest data, projecting that the global immunotherapy market will expand from $61.5 billion in 2015 to $74.2 billion by 2022, potentially accounting for half of the oncology treatment market.
According to the forecast report, by 2022, the global immunotherapy market will feature the concurrent launch of numerous originator drugs and intense competition. Meanwhile, shortcomings in biosimilar development urgently need to be addressed, with technology and regulatory frameworks remaining the two major constraints hindering R&D progress. Therefore, GBI predicts that the compound annual growth rate (CAGR) in this field will remain stable at 2.71% in the coming years.
Dominic Trewartha, a management analyst at GBI, stated that although the immunotherapy market remains robust, giving rise to numerous blockbuster drugs with annual sales exceeding $100 million, these originator products will inevitably face declining sales due to the dual pressures of efficacy and pricing as patents expire and a series of biosimilars come to market.
★China's Elderly Population to Exceed 400 Million by 2050, with a Pension Gap of 6 Trillion Yuan
According to a set of data calculated by Yao Yudong, Director of the Financial Research Institute of the People's Bank of China, during his recent research on the topic of "super-aged society," the pension gap will reach 4.1 trillion yuan in 15 years; in 35 years, this gap will be approximately 6.1 trillion yuan...
Hong Qi, Chairman of China Minsheng Bank, also stated at the inaugural meeting of the China Pension Finance 50 Forum that “by 2050, China will enter a super-aged society, with the elderly population exceeding 400 million and the proportion of people aged 60 and above surpassing 30%, making it one of the most aged populations globally.”
the country with the highest rates. Against this backdrop, it is imperative to vigorously develop pension finance to mitigate various risks in old age, offer diversified and multi-tiered pension financial products, and advance the pension finance industry as a key financial strategy.”
It is understood that as China’s aging population trend becomes increasingly severe, the demand volume of the “silver economy” is gradually expanding, prompting a growing number of financial institutions—including banks, insurance companies, and trust firms—to place greater emphasis on pension finance services.
The “XXX Economy” has recently gained significant traction. However, we sincerely hope that empty promises are avoided; what truly matters is that your rewards align with the value you deliver.
In plain language,
——New Technologies——
★UK Inventors Develop Transparent Pain-Relief Patch Capable of Continuous Drug Delivery for 12 Hours
Researchers at the University of Warwick in the UK announced that they, together with Medherent, a university spin-off company, have invented the world’s first transparent ibuprofen patch capable of continuously delivering medication through the skin.
The patch utilizes Bostik’s polymer technology for its adhesive matrix, enabling researchers to load a substantial amount of analgesic onto the polymer base. The drug can constitute up to 30% of the patch’s total weight, which is 5 to 10 times higher than the dosage found in existing analgesic patches and ibuprofen gels.
Existing oral analgesics and ibuprofen gels make it difficult to control dosage, whereas this patch utilizes transdermal technology to deliver medication steadily over 12 hours. This paves the way for the future development of novel long-acting over-the-counter analgesics and will help alleviate pain in patients with chronic conditions such as arthritis, neuralgia, and back pain.
It is reported that this patch will be available on the market within two years.
"Um, does this mean I can just jab myself with needles for fun whenever I want, since I have pain-relief patches anyway?"
★Scientists Develop Ultra-Fine LED Probes to Aid in Finding Cures for Nervous System Diseases
Researchers at the University of Michigan have recently developed the world’s smallest implantable LED probe for the brain.
Each probe has a width of less than 0.1 mm (no larger than a single neuronal soma) and incorporates 12 LEDs and 32 electrodes, with any individual LED capable of activating a neuron.
When doing so, the electrode is able to detect any responses from other neurons in the surrounding network.
It is reported that scientists from the University of Illinois and the University of Washington had previously developed single-needle LED devices for neuronal activation, but these did not include electrodes for detecting responses.
——Capital——
