VB Weekly Report 1214: China's First Internet Hospital Launches Amid Industry Upheaval
——Events and Perspectives——
This matter is... ...
"Um, let's switch channels for a moment and follow the standard procedure."
（P.S.: Actually, you can just swipe up on ShouDou to get it first. Why not give it a try?)
Speaking of which, last week’s major events in the internet healthcare sector were marked by frequent storms, incessant infighting, and a relentless stream of explosive revelations.
Let’s start with the “unveiling of the first internet hospital,” which literally moved this editor to tears (of sheer excitement).
That was December 7,The Tongxiang Municipal Government of Zhejiang Province Officially Announced the Launch of China’s First Internet Hospital, Unveiling the Official Website and Mobile App of Wuzhen Internet Hospital, providing online diagnosis and treatment services centered on follow-up consultations for people across China. Wuzhen Internet Hospital has pioneered a new model of “Internet+” healthcare, enabling doctors to consult with each other and with patients via video conferencing without the need for face-to-face encounters. The entire diagnostic and treatment process, including issuing electronic prescriptions and dispensing medications, can be completed online. It is reported that the co-founders of Wuzhen Internet Hospital have established information system connections with more than 1,900 key hospitals in 27 provinces across China, with a participation rate of 70% among tertiary Grade A hospitals, aggregating a resource pool of 200,000 physicians.
On the third day, it issued “China’s first online electronic prescription.” However, after careful scrutiny by leading industry experts, it was determined that this was not actually the first electronic prescription. Nevertheless, its significance for internet healthcare and triage remains substantial.
Speaking of high morale, it’s unclear which blabbermouth leaked the rumor that “Guo Guangchang, the 48-year-old Chairman of Shanghai Fosun Group, has lost contact,” instantly causing an uproar in the market. Related listed companies, including Yuyuan Group, Nanjing Iron & Steel, Fosun Pharma, Hainan Mining, and Shanghai SteelUnion, were all temporarily suspended from trading. Sigh, they really don’t shy away from stirring up trouble.
However, later in the evening, several companies, including Fosun Pharma, Yuyuan Tourist Mart, and Nanjing Iron & Steel, issued announcements stating that Guo Guangchang is currently assisting judicial authorities with their investigation. He is still able to perform his duties through appropriate channels, and the impact on the companies’ actual operations is minimal. The suspended stocks will resume trading next Monday.
So, there’s nothing much for us to do—just wipe your eyes and keep reading the weekly report.
The Real FeelingPharmaceutical Companies Are Dominating the Headlines in the Digital Health Sphere: Pharma Is Going “Crazy”
Novo Nordisk Partners with IBM Watson Health to Create “Virtual Doctor”.
According to The Wall Street Journal, Danish pharmaceutical company Novo Nordisk will partner with IBM Watson Health to create a “virtual doctor” for diabetes patients, providing them with treatment advice such as insulin dosage. The company, which specializes in diabetes care, aims to use IBM’s supercomputing platform—Watson—to analyze data from diabetes patients, thereby helping them manage their condition.
Furthermore, through this partnership, Watson will also assist Novo Nordisk in collecting patient data on the use of its medications worldwide, which will be entirely beneficial and without any downside to Novo Nordisk’s future marketing efforts.
Looking further, WuXi AppTec completes privatization for $3.3 billion.
On December 10 (U.S. time), WuXi AppTec, a Chinese concept stock, announced after the market close that it had completed its privatization and delisted from the New York Stock Exchange. The company was formally sold for approximately $3.3 billion in cash to the newly established parent company, New WuXi Life Science Limited, and merged to form WuXi Merger Limited.
WuXi AppTec’s privatization, from its initiation in late April to its completion, took nearly eight months.This transaction proceeded much more smoothly than the privatization of XXX.It’s only just begun, so there’s still a chance. The most important thing right now is to show everyone your potential. Isn’t that right?
Next, Renhe Pharmaceutical acquired a 56% stake in Yaofang.com for RMB 277 million, securing a “key ally” for Dingdang Kuaiyao.
Recently, Renhe Pharmaceutical announced that it has officially acquired a 56% stake in Beijing Jingwei Yuanhua Pharmaceutical Technology Co., Ltd. for RMB 277 million. Additionally, Renhe Pharmaceutical will inject RMB 49.44 million into Jingwei Yuanhua to increase its shareholding by an additional 10%. Ultimately, Renhe Pharmaceutical will hold a 60% stake in Beijing Jingwei Yuanhua.
Regarding this acquisition, Renhe Pharmaceutical stated that Jingwei Yuanhua holds all statutory Good Supply Practice (GSP) qualifications spanning from pharmaceutical wholesale to retail, and possesses the first B2C pharmaceutical operation license issued by the national drug regulatory authorities. Furthermore, Yaofang.com has extensive experience in B2C pharmaceutical operations, a mature team, and a substantial customer resource database. Jingwei Yuanhua also holds qualifications for third-party pharmaceutical logistics and express delivery services, which will enable Renhe Pharmaceutical to legally conduct B2B, B2C, O2O, and “store-to-door” pharmaceutical businesses.
All the editor can say is, “Money still makes things happen.”
Furthermore, Kangmei Pharmaceutical plans to raise RMB 8.1 billion to strengthen its entire industry chain.
On the evening of December 10, Kangmei Pharmaceutical released a private placement plan. The company intends to issue no more than 523.5941 million shares through non-public offering at a price of RMB 15.47 per share, raising total proceeds of no more than RMB 8.1 billion, which will be used to supplement working capital and repay bank loans. Among this, the company’s controlling shareholder, Kangmei Industrial, plans to subscribe for RMB 3.2 billion worth of shares, while the company’s employee stock ownership plan (ESOP) intends to subscribe for approximately RMB 100 million. The company stated that this move will effectively help further strengthen its full industrial chain business system in traditional Chinese medicine (TCM) and advance its “Internet + Great Health” strategy.
Honestly, if this trend continues, there’s little point in my churning out these weekly “reports” (read: ramblings); I might as well quit and go home to sell sweet potatoes. So, to all you players in the internet, healthcare, and wearable tech sectors—it’s up to you to step up and drive things forward!
Oh, by the way, there’s one more major thing I haven’t mentioned, and that is,
Annual Blockbuster!! Who Is the Hero in Your Heart? Nominations for the Internet Healthcare Annual Awards Hosted by VCBeatOfficially Launched。
Do you hear it? The sound of the healthcare system’s glacial thaw.
Tap “Internet Healthcare Power List”, hurry up and nominate the internet healthcare heroes in your mind.
"After all these years, stop doing good deeds anonymously."
—— VCBeat Exclusive ——
Exoskeleton Device Series 2: Iron Man Spinoff - The Story of Medical Wearable Exoskeleton Systems
Which hospitals are the most adept at leveraging Weibo and WeChat?
“Insider” Secrets of the Trendy Internet Diabetes Insurance Exposed
Wearable Device Databases Have Transformed Urban Transportation Systems
Stanford Medicine: The Secret Behind Its Rise to the Top of the “Langya Bang”
Decoding Hot English Terms in Internet Healthcare:HIS
——————————Healthcare Reform——————————
★By 2020, the number of tertiary hospitals in Chongqing will reach 40.
On December 9, the General Office of the Chongqing Municipal People’s Government issued the “Chongqing Healthcare Service System Plan (2015–2020).” According to the Plan, by 2020, the number of tertiary hospitals in the municipality will reach 40, while strict controls will be imposed on the scale of public hospitals, shifting from a quantity-driven growth model to one focused on quality and efficiency.
★Three Ministries Launch Pilot Program for Individual Income Tax Deductions on Commercial Health Insurance in 31 Cities
On December 11, the Ministry of Finance, the State Administration of Taxation, and the China Insurance Regulatory Commission jointly issued the “Notice on Implementing Pilot Programs for Individual Income Tax Policies Related to Commercial Health Insurance.” Starting January 1, 2016, pilot programs for individual income tax policies related to commercial health insurance were implemented in 31 cities, including Beijing and Shijiazhuang, Hebei Province.
According to the “Notice,” there are three categories of compliant health insurance products, each applicable to the following three scenarios: (1) individuals who wish to be reimbursed for out-of-pocket medical expenses remaining after coverage by public medical care or basic medical insurance; (2) individuals who wish to be reimbursed for specific high-cost out-of-pocket medical expenses remaining after coverage by public medical care or basic medical insurance; and (3) individuals not enrolled in public medical care or basic medical insurance who wish to be reimbursed for their out-of-pocket medical expenses.
★“32-Year Gestation”: Traditional Chinese Medicine Law Finally Passed
On December 9, 2015, the Executive Meeting of the State Council reviewed and approved the Draft Law on Traditional Chinese Medicine, bringing this legislation, which had been in gestation for 32 years, finally into being.
According to the official announcement on the Chinese government’s website, the Draft stipulates systems for the licensure of TCM physicians and clinics, the administration of traditional Chinese medicine (TCM) drugs, and talent development, all tailored to the characteristics and developmental needs of TCM. These measures aim to inherit and promote TCM by strengthening policy support, while adhering to the fundamental principle of placing equal emphasis on fostering growth and ensuring regulatory compliance.
★Shandong Province Announces First Batch of Pilot Cities and Counties for Tiered Diagnosis and Treatment: 110 Diseases to Be Hospitalized Within County-Level Regions
On December 8, the General Office of the People’s Government of Shandong Province released the “Implementation Opinions on Implementing Document No. 70 [2015] of the General Office of the State Council to Promote the Establishment of a Tiered Diagnosis and Treatment System.” Shandong will comprehensively leverage healthcare services, medical insurance, pharmaceuticals, and pricing mechanisms to establish referral channels, gradually forming a tiered diagnosis and treatment system characterized by initial consultations at primary care facilities, two-way referrals, separate management of acute and chronic conditions, and coordinated care between upper- and lower-level institutions. In accordance with the requirements of the “Opinions,” 14 prefecture-level cities and county-level cities in Shandong Province were designated as the first batch of pilot counties (cities, districts) for the tiered diagnosis and treatment system.
Meanwhile, the Shandong Provincial Government has also issued the “Reference Catalog of Inpatient Diagnosis and Treatment Conditions at the County Level.” According to a review, this catalog includes a total of 110 conditions, such as bronchial asthma, chronic bronchitis, hypertension, gastric ulcer, infantile diarrhea, type 2 diabetes mellitus, and acute appendicitis.
The “Opinions” also propose prioritizing coverage for critical and major illnesses, while moderately controlling reimbursement costs for common conditions. The medical insurance payment ratio for primary healthcare institutions shall be appropriately increased, with the reimbursement rate difference between healthcare institutions of different tiers being no less than 10% in principle. For insured patients who are hospitalized through proper referral procedures, the deductible shall be calculated consecutively; for those who seek hospitalization without referral, the reimbursement rate from the medical insurance fund may be appropriately reduced, thereby guiding the public to seek medical care at primary healthcare institutions.
★National Health and Family Planning Commission: To Advance Medical and Pharmaceutical System Reform with 35 Measures over Three Years
On December 11, the National Health and Family Planning Commission held a press conference to introduce the progress and effectiveness of the “Action Plan for Further Improving Medical Services.” Commissioner Zhou Jun stated that over a three-year period (2015–2017), ten categories comprising 35 measures—including improving the care environment, optimizing processes, enhancing medical quality, ensuring patient safety, promoting communication, establishing mechanisms, and providing technological support—would be implemented to further advance and deepen the reform of the pharmaceutical and healthcare systems.
——————————Data——————————
▼IDF: 415 Million Adults Worldwide Had Diabetes in 2015, with 110 Million in China
According to the 7th edition of the IDF Diabetes Atlas, recently released by the International Diabetes Federation (IDF) at the “2015 World Diabetes Congress,” there are 415 million adults with diabetes worldwide, meaning one in every 11 people has diabetes. This latest edition, which breaks down data by diabetes type, shows that the global number of adult diabetes patients has increased by 31 million since the previous edition was published in 2013. In contrast, the World Health Organization (WHO) announced in 2012 that the global number of diabetes patients was 347 million.
▼Newly Released Alibaba Retail Platform Health Consumption Report: Beijing’s Mask Spending Accounts for One-Sixth of China’s Total
Recently, Alibaba Research Institute and AliHealth jointly released the "Alibaba Retail Platform Health Consumption Report" for the first time. Data shows that in 2014, the total health consumption (including pharmaceutical products, health products, and medical health services) on Alibaba's retail platform increased by 62.5% compared to the same period last year, reaching 65.02 billion yuan. The report suggests that Chinese people's concept of health consumption is shifting from "treating illness when sick" to "preventing illness before it occurs." Meanwhile, consumer demand for health-related products and services continues to upgrade, showing an increasingly diverse and enriched trend. Among these, there are three core points:
The number of health consumers increased by 63.5%, with Shanghai leading in per capita spending at 872 yuan;
Medical service products saw outstanding Double 11 sales, as consumer demand for health products continued to upgrade;
Beijing’s Mask Consumption Accounts for One-Sixth of China’s Total, economically developed regions place greater emphasis on health services;
▼Survey Shows 74% of U.S. Adults Plan to Purchase Health or Fitness Devices Next Year, with Smart Watches in High Demand
A recent survey found that 74% of adults plan to purchase health or fitness devices next year. Among those with purchase intentions, 35% want to buy smartwatches. These findings were derived from an online survey conducted by the Consumer Technology Association (CTA), formerly known as the Consumer Electronics Association, among 1,001 U.S. adults between August 20 and September 2 this year.
Following smartwatches, the next most popular category is fitness-related apps, with 30% of respondents expressing interest in downloading them. Meanwhile, 27% indicated they plan to purchase a dedicated fitness tracking device, another 27% expressed interest in buying smart clothing, and 23% wished to acquire sleep tracking devices.
In addition, the CTA released sales forecast data for health and fitness devices. The organization predicted that sales of health and fitness devices would reach $1.8 billion in 2015, with activity trackers accounting for the largest share. This represents an 18% increase from the previous year, with growth projected at 10% for 2016.
——New Technologies——
▼US Develops World’s First Active Silicon Chip to Aid in Cancer Diagnosis
U.S. Scientists Develop World’s First Active Silicon Chip, Paving the Way for Microelectronics Integration into Living CellsAccording to reports, scientists at Columbia University in the United States have recently developed an active silicon chip that will serve as a transitional link for the integration of microelectronics and biological systems. In the near future, this chip may enable the implantation of microelectronic technology into living cells.
Experts point out that breakthroughs in nanotechnology achieved over the next few years could help identify cancer cells present in the human body, and this invention will also aid in monitoring toxic substances in the environment. They further stated that such chips can not only harvest energy but also recognize molecules.
▼Scientists Develop New Sensor: Tear Analysis Can Diagnose Ocular Trauma
A research team at the University of Illinois has developed a novel portable sensing device, OcuCheck, which helps determine the specific nature of ocular trauma in patients by measuring vitamin C levels in their tears. The related findings have been published in the journal Scientific Reports.
OcuCheck has currently been applied in ophthalmic surgical experiments involving 16 patients with ocular trauma. Researchers found that the device demonstrated high accuracy in measuring ascorbic acid concentrations. Although the device has not yet been tested on trauma patients, the team predicts that its measurement results will remain highly reliable, as its precision is not affected by blood interference. InnSight Technologies, a spin-off company from the university, is commercializing the sensor by integrating a user interface and developing a portable device.
“No more shedding tears in confusion from now on; I must save them up for future contingencies. Hmm!”
———Capital———
I know many of you have been holding back your anger (and ready to throw bricks) to get this far. Yes, I’ve misled you all. I promised to cover just one topic, yet I rambled on and on. If you want to vent, go ahead and slap your screen—I won’t feel a thing.
However, please remember to click “Internet Healthcare Power List”, nominate the hero in your heart!