Domestic Internet Healthcare Sector Secures Over $100 Million in Funding Last Week, Per VB Weekly Report 0914
▍Events and Perspectives
“Lang Yongchun’s Post-Resignation Plans” Successfully Topped Last Week’s Internet Healthcare Topic Chart, as His Next Employer Is Rumored to Be an Internet Healthcare Company.According to reports, Lang Shuai’s appearance on the evening news broadcast of CCTV on September 2 was his final program hosting gig and his farewell to CCTV. His move to an internet healthcare company stems from his five years of medical studies and personal healthcare experiences, which have led to frequent engagement with “internet healthcare.”However, Lang Yongchun did not disclose the specific identity of his next employer, merely stating that he would first spend time with his wife and children.Whether these rumors are well-founded or not will eventually be revealed. For now, let us review the major developments in internet healthcare that occurred last week.First, let’s take a look at BAT.
Last week, Alibaba Health appointed three non-executive directors.Alibaba Health issued an announcement appointing Joe Tsai, one of the founders of Alibaba Group and its current Executive Vice Chairman, as a Non-Executive Director of Alibaba Health. Meanwhile, Huang Aizhu, Senior Director of “Tmall” under Alibaba Group, and Kang Kai, Director of “Tmall” and Head of the Tmall Medicine Health Division, were also appointed as Non-Executive Directors of Alibaba Health.Meanwhile, Alibaba Health also disclosed in an announcement that,After rigorous review, Zhejiang Tmall Network Co., Ltd. obtained the Class A Certificate for Internet Drug Transaction Services issued by the China Food and Drug Administration (CFDA), with certificate number Guo A20150001.The acquisition of the Class A Certificate, combined with CITIC 21 Century (China) Technology Co., Ltd.—the owner of the “95095 Pharmaceutical Platform” acquired by Jack Ma for RMB 1 billion—means that Alibaba Health now holds both the pilot qualification for online retail of pharmaceuticals as an internet-based third-party platform (i.e., providing B2C third-party platform services) through the 95095 platform, and the qualification to provide internet drug transaction services among pharmaceutical manufacturers, pharmaceutical distributors, and medical institutions via the Class A Certificate.
From then on, Ali Health could legitimately allow wholesale and retail enterprises to join its platform for pharmaceutical transactions.
Additionally, the Ministry of Commerce announced last week that it will promote the sharing of prescription information with pharmaceutical retail enterprises in the future. This is undoubtedly a positive development for Alibaba Health, which has long been active in the online pharmaceutical sector.Baidu Launches O2O Super Portal “Dumi”Last week,Baidu Chairman and CEO Robin Li announced the launch of a new robotic assistant, Duer (Chinese name: Du Mi), in the latest version 6.8 of the Baidu Mobile app, ushering in an era of intelligent services through a robotic secretary model.Users can place food orders or access other services through “Du Mi.” Baidu is developing a system that will enable “Du Mi” to control various smart home devices and connect them with healthcare and other service providers.This poses a significant challenge for Google as it prepares to return to the Chinese market.
In terms of challenges, just as Baidu faces Google, social media also poses a challenge to physicians.This means having “people” provide hands-on guidance.
Recently,Mayo Clinic’s Social Media Center and Hootsuite, the world’s leading social media management platform, have announced a partnership to offer courses for healthcare professionals on the application of social media.Farris K. Timimi, Medical Director of the Mayo Clinic Center for Social Media, stated, “Although physicians are not yet highly active online, public perceptions of them continue to influence their clinical practice. This initiative can help healthcare providers develop competencies in social media use, ultimately enabling them to refine their care delivery and enhance patient experience.”
Let’s take another look at last week’s most lavish move.The NIH invested another $48 million to support the integration of genomic data into electronic health records. Last week,The U.S. National Institutes of Health (NIH) recently announced a total investment of $48 million dedicated to collecting and integrating genomic information into electronic health record systems.As planned, the NIH will fund at least ten research institutions, each responsible for a specific aspect of this initiative. This NIH program is primarily aimed at enhancing electronic health record systems and the Medicare system to support the Precision Medicine Initiative.
Among them, Brigham and Women’s Hospital and Baylor College of Medicine will receive the largest share, serving as the sequencing and genotyping centers for this NIH initiative. Over the next four years, the two research institutions will collectively receive $16.9 million in R&D funding. The research funds have already been secured, with specific disbursements contingent upon the progress of each institution’s work.In addition, there is By-Health.
Last week,By-Health announced that the company invested RMB 87.6 million to acquire a stake in Shanghai Fandi Biotechnology Co., Ltd., a leading enterprise in gene sequencing, holding 19.0435% of its equity; additionally, it holds a 7.227% equity stake through a health industry investment fund established jointly with GF Xinde.Shanghai Fandi will become one of the partners in By-Health’s effort to build an ecosystem for the broader health industry. The two parties will integrate resources and continuously invest in next-generation gene sequencing technologies that represent future trends, aiming to improve public quality of life through more scientifically robust diagnostic data while continually uncovering potential commercial opportunities. Reportedly, this marks By-Health’s first investment and strategic entry into the life sciences sector, aligning with its established strategy of evolving from a single-product provider into a comprehensive solutions provider for health interventions, beyond its existing offerings in dietary supplements, mobile health, and internet-based healthcare.
Furthermore, there are proactive players launching new medical services or products. At the recent IFA Consumer Electronics Show in Berlin,Philips Announces Launch of Personal Connected Health Devices. The launch encompasses not only the devices themselves, but also a comprehensive health program that integrates devices, app-based personal initiatives, and secure cloud-based data analytics.Philips’ health suite includes a health-tracking smartwatch with an optical heart rate sensor, accelerometer, and sleep monitoring features; a tubeless, rechargeable upper-arm blood pressure monitor; a smaller, rechargeable wrist-worn blood pressure monitor; a smart scale that measures weight, assesses body fat, and calculates BMI; and an ear thermometer that provides readings in two seconds.
All these devices transmit data via Bluetooth to the dedicated Philips HealthSuite health app. Philips aims to open this platform to developers, enabling health data collected through various methods to be integrated into the platform.
According to VCBeat, the new device kit will be launched in Germany next month and will be available in other countries next year.Meihe Accompanied Medical Consultation provides out-of-area medical care services.Meihe Medical Escort initially attracted users by highlighting access to “renowned specialists,” before pivoting to an O2O medical escort model. Recently, it has added a new service: facilitating out-of-area medical care.Patients who seek treatment outside their home regions are typically those with severe or complex conditions. Unfamiliarity with the local environment often makes the healthcare journey exceptionally challenging. Meihe’s out-of-area care model resembles having a knowledgeable local guide, except that its “guides” are highly trained professionals who provide pre-visit reception, in-hospital companionship, and post-discharge consultation services. Access to this out-of-area care is primarily facilitated through physician referrals; hospitals commonly recommend transfers when they are unable to provide adequate treatment.
One final matter, which is likely of considerable interest to those who have relocated to Beijing for work. Last week,The Beijing Municipal Health and Family Planning Commission stated that unified health records will be established for all migrant residents who have lived in Beijing for more than six months, and free contraceptive supplies will be available in areas with high concentrations of migrant populations.Furthermore, vaccination records will be established for all migrant children aged 0 to 6 years who have resided in the jurisdiction for at least three months. Vaccinations for these eligible migrant children will be administered through appointments, notification slips, telephone calls, and SMS messages.
In its plan to promote the equalization of basic public health and family planning services for the floating population, the Beijing Municipal Health and Family Planning Commission stated that 11 categories of basic public services will be fully implemented for this group. Priority will be given to the effective delivery of six key services: childhood immunization, infectious disease prevention and control, maternal and child healthcare, health records, family planning, and health education. This means that the floating population will enjoy the same benefits as Beijing’s registered residents.According to the plan, by 2020, the vaccination rate among children of the floating population in the city will reach 95%, the rate of standardized electronic health record establishment for the floating population will reach 80%, and the coverage rate of free contraceptive services for women of childbearing age in the floating population will reach 100%.
▍VCBeat Exclusive
When Internet healthcare shifts from a B2C to a B2B2C model, who is the most critical “B” to target?
Johns Hopkins: How It Has Remained No. 1 on the List for 22 Consecutive YearsMedlinker: Why Did It Capture the Attention of Both Ma Huateng and Jack Ma?
When “Internet + Healthcare” Meets Regulation, the Right Approach Is…
Jiujiu Orthopedics — Reconstructing the Orthopedic Healthcare Ecosystem
Doctor Station: Building a High-Engagement Physician CommunityMeihe Medical Escort: Renowned Specialists + Medical Escort Services + Out-of-Area Medical Care
[Cardiovascular Series Report 9] 37 Health’s Dai Wanhui: Our Users Are Our Product Managers[Cardiovascular Series Report 10]
OQBridge Technology: Crossing Over from Automotive Electronics to ECG Monitoring
Decoding Trending English Terms in Internet Healthcare:Clinical Data Repository/vCRP
▍ Healthcare Reform
The State Council Clarifies the Functional Positioning of Hospitals at All Levels, Basically Achieving the Goal of Treating Major Illnesses Within Counties:“Guiding Opinions of the General Office of the State Council on Promoting the Construction of a Tiered Diagnosis and Treatment System” was released, providing guidance to localities on advancing the establishment of this system: (1) performance-based salary distribution should favor general practitioners; (2) physicians are encouraged to practice at multiple sites in primary care settings, and those meeting eligibility criteria are encouraged to establish private clinics; (3) the rate of patient visits within county-level jurisdictions should be raised to approximately 90%.
CFDA Issues New Version of "Drug Production License":The China Food and Drug Administration (CFDA) has issued a notice regarding the centralized renewal of expiring "Drug Manufacturing Licenses" and "Medical Institution Preparation Licenses" in 2015. It has been decided to issue new versions of the "Drug Manufacturing License" and "Medical Institution Preparation License" (including both original and duplicate copies). Drug manufacturing enterprises (or specific manufacturing scopes) that fail to pass the certification for Good Manufacturing Practice for Drugs (2010 Revision) as required will not be issued the new version of the "Drug Manufacturing License" (or the corresponding manufacturing scope). Furthermore, in accordance with the "Notice of the CFDA on Strengthening Supervision and Management of Extraction and Extracts in Traditional Chinese Medicine Production" (Shi Yao Jian Yao Hua Jian [2014] No. 135), manufacturers of traditional Chinese medicine (TCM) extracts, as well as manufacturers of proprietary Chinese medicines (or specific manufacturing scopes) lacking the corresponding TCM extraction capabilities, will not be issued the new version of the "Drug Manufacturing License" (or the corresponding manufacturing scope).
China to Promote Price Reductions for Antineoplastic Drugs and Expand Coverage for Critical Illnesses:The National Health and Family Planning Commission, the National Development and Reform Commission, and 14 other departments jointly issued the "Three-Year Action Plan for Cancer Prevention and Control in China (2015–2017)" to curb the rising trend of cancer incidence in China as soon as possible. Over the past two decades, the cancer incidence rate in China has shown a year-on-year increase. According to the 2013 national tumor registration results, the current cancer incidence rate in China is 235 per 100,000 population, with a mortality rate of 144.3 per 100,000 population.The "Action Plan" proposes four quantitative indicators: tumor registration coverage extending to more than 30% of the national population; a 60% awareness rate of core knowledge on cancer prevention and control; a 3% reduction in the adult smoking rate; expanded coverage of cancer screening and early diagnosis and treatment, focusing on lung cancer, liver cancer, gastric cancer, esophageal cancer, colorectal cancer, breast cancer, cervical cancer, and nasopharyngeal cancer; and an early diagnosis rate of 50% for key cancers in priority regions.
Jiangsu Unveils “Aggressive Measures” to Curb Unreasonable Cost Growth in Public Hospitals:The Jiangsu Provincial Health and Family Planning Commission issued the "Opinions on Further Strengthening Internal Management of Public Hospitals to Control Unreasonable Growth in Medical Expenses." The Opinions state that within two years, the proportion of drug costs in public hospitals at Level II and above will be reduced to 30%. Efforts will be made to rectify "excessive and indiscriminate testing," with the overall positive rate for large-scale X-ray equipment examinations in hospitals at Level II and above reaching over 50%, and the overall positive rates for CT and MRI examinations reaching over 60%. Meanwhile, it is clearly stipulated that mutual recognition of examination results will be implemented among public hospitals at Level II and above throughout Jiangsu Province.
Hangzhou Includes 15 High-Cost Drugs for Treating Leukemia, Cancer, and Other Conditions in Medical Insurance:Starting September 15, 15 high-cost drugs will be included in the coverage scope of Hangzhou’s Critical Illness Insurance for Special Drugs.The 15 drugs are: Gleevec, Alimta, Iressa, Doxil, Erbitux, Qingweike, Rabbit Anti-Human T-Lymphocyte Immunoglobulin, Herceptin, NovoSeven, MabThera, Remicade, Foslinuo, Tykerb, Somatuline, and Forsteo. Most of these 15 medications are “life-saving” drugs used to treat leukemia and cancer, and the majority are imported products with high prices. For some of these drugs, the annual cost per patient can reach hundreds of thousands of yuan, making them unaffordable for ordinary families.
Promoting the Development of Big Data in Healthcare Services:The State Council issued the Outline of Actions to Promote Big Data Development, which clearly aims to advance the development and application of big data. Over the next five to ten years, it seeks to establish a new model of social governance characterized by precision governance and multi-party collaboration, accelerate the universal access to public welfare services, and promote the development of big data in medical and health services.The Outline requires the establishment of electronic health record and electronic medical record databases, and the construction of a big data application system for medical and health management and services that covers public health, medical services, medical insurance, drug supply, family planning, and comprehensive administrative operations.It encourages the exploration of services such as appointment registration, tiered diagnosis and treatment, telemedicine, sharing of examination and test results, integration of prevention and treatment, integration of medical care and elderly care, and health consultations, so as to optimize and form standardized, shared, and mutually trusted diagnostic and treatment processes. Enterprises and institutions are encouraged and regulated to carry out innovative applied research on medical and health big data and to develop integrated health service applications.
▍Data
China's Online Healthcare Industry Market Size to Exceed RMB 17 Billion:Recently, iResearch released the "2015 China Online Healthcare Industry Research Report." Statistical data from iResearch shows that the market size of China's online healthcare industry was RMB 160 million in 2009, reached RMB 10.88 billion in 2014, and is projected to exceed RMB 17 billion in 2015, indicating an exponential growth trend and rapid market development.The report indicates that transaction-based revenue currently accounts for the largest share of the total market size, followed by marketing-based revenue, while user value-added revenue accounts for the smallest share. iResearch analysis suggests that the online healthcare market will experience significant growth once the ban on online sales of prescription drugs is lifted and these sales are integrated with medical insurance payment systems. The small scale of user value-added revenue is mainly attributed to: (1) users' low willingness to pay; and (2) companies' current need to accumulate a user base, resulting in relatively low charging levels.
Newborn Screening: Market Value to Triple Over the Next Seven Years as DNA Analysis Technology Gains FavorAccording to the latest report from Grand View Research, the global neonatal screening market was valued at USD 640.5 million in 2014 and is projected to reach USD 1.43 billion by 2022.Driven by the rising incidence of cardiovascular diseases, the North American neonatal screening market dominates the global landscape. However, given the substantial number of newborns affected by metabolic disorders worldwide—particularly in Africa, the Middle East, and subtropical regions—the Asia-Pacific neonatal screening market is expected to register the fastest growth during the forecast period, exceeding a compound annual growth rate (CAGR) of 11.0%. In recent years, awareness and quality assurance of neonatal screening have significantly improved in countries such as South Korea, China, India, and Sri Lanka. This growth is fueled by vast untapped opportunities, increasing healthcare expenditure, rising disease prevalence, and government support.Key players in the neonatal screening market include Agilent Technologies, AB Sciex, Natus Medical, PerkinElmer, Covidien, Masimo, Trivitron Healthcare, Bio-Rad, GE Healthcare, and Waters. The active participation and strategic partnerships among these companies ensure market sustainability. For instance, Trivitron Healthcare collaborated with Agilent Technologies to launch high-precision in vitro diagnostic solutions based on the LC-MS/MS platform.
NGS: The market size is projected to reach $30 billion in seven years, with prenatal testing ranking second in market share:According to foreign media reports, the global market size for next-generation sequencing (NGS) was $2 billion in 2014 and is projected to reach $30 billion by 2022. Whole-genome sequencing technology is developing at the fastest pace, gradually dominating the NGS market. Oncology research and prenatal testing rank as the top two applications in the NGS market.The number of users of remote monitoring tools in the healthcare industry is expected to reach 78.5 million by 2020.Consulting firm Tractica released a report stating that the number of global users of remote monitoring tools and home health technologies will increase from 14.3 million in 2014 to 78.5 million.The report analyzes that healthcare providers are beginning to offer home health care for the elderly, provide remote monitoring tools for patients with chronic diseases, and continuously expand access to telemedicine consultations in order to improve patient outcomes and healthcare delivery systems. Coupled with the widespread adoption of smartphones and mobile health apps, as well as rising healthcare costs, these factors will stimulate growth in the number of users of telemedicine services.
Menopausal Women Lose the Most Weight with 300 Minutes of Weekly Exercise:Researchers from Alberta Health Services in Canada conducted a study on 400 postmenopausal women, who were divided into two groups: one group engaged in 300 minutes of exercise per week, while the other performed 150 minutes of moderate-to-vigorous aerobic exercise per week.The results showed that women in the 300-minute weekly exercise group experienced the greatest reduction in average total body fat compared to those in the 150-minute group.Women in the 300-minute weekly exercise group also demonstrated greater reductions in subcutaneous fat, abdominal fat, BMI, and waist circumference.These reductions were even more pronounced among obese women (BMI ≥ 30).
By 2020, the global market size for sports and fitness wearables will reach $9.4 billion:Sports, fitness, healthcare, and apparel are becoming the foundational industries for the early market success of wearable technology. According to an analysis by Mind Commerce, a U.S.-based market research firm, the global market size for sports and fitness wearables will reach $9.4 billion by 2020, with a compound annual growth rate (CAGR) of 103%. Wearable devices in these segments are typically accompanied by apps or personal service accessories that provide user information. For example, some health-focused wearables can monitor blood pressure, heart rate, body temperature, and other metrics.
▍New Technologies
→ France to Develop Wearable Artificial Lung:Researchers at the Marie Lannelongue Surgical Center in France are preparing to develop a battery-powered wearable artificial lung. This artificial lung neither requires implantation into the patient’s body via major surgery nor necessitates the removal of the patient’s own failing lungs.According to Olaf Mercier, the project lead, the wearable artificial lung will function as an external “third lung,” secured at chest level by a harness or belt. A cannula on the device enters the patient’s body through the neck, drawing deoxygenated venous blood from the right ventricle. The blood then passes through the artificial lung, where it absorbs oxygen and releases carbon dioxide, becoming oxygenated arterial blood before being returned to the left atrium.The project has received €5 million in R&D funding from the French government, with research and development scheduled to commence in January 2016. Upon successful development of the artificial lung, the researchers will first conduct in vivo animal experiments, with clinical trials planned for late 2020 targeting patients with advanced pulmonary arterial hypertension.
→ U.S. Universities Develop Mouthguard Sensors to Monitor Physical Conditions:Engineers at the University of California, San Diego (UCSD) have designed a prototype smart mouthguard capable of monitoring multiple health indicators in saliva and wirelessly transmitting the data to mobile devices.The sensors embedded in this mouthguard can continuously and non-invasively monitor biomarkers such as lactate, cortisol, and uric acid in patients, athletes, and even soldiers, thereby assessing their health status, physical fitness, and stress levels. Currently, researchers are focusing on the detection of uric acid, a marker associated with conditions such as diabetes and gout.The next step involves integrating the sensors directly into the mouthguard—a process that includes testing various sensors and electronic materials to ensure their biocompatibility.
→ Micro-implants successfully capture cancer cells:U.S. Scientists Publish in Nature Communications: They Developed a Miniature Implant That Can Disperse Throughout the Body in Mice to Help Capture Cancer Cells
→“Velcro” Structure Can Aid in Repairing Damaged Hearts
A newly developed biocompatible scaffold by Canadian engineers can “fasten” sheets of beating heart cells together like Velcro, making the assembly of functional cardiac tissue as simple as fastening a shoe buckle.In the future, these micro-modules could be used to construct tissues of any size required for surgery, and the polymer scaffold itself is biodegradable, gradually breaking down and being absorbed by the body within just a few months.
→ Novel Bandage Technology Capable of Extracting Bacteria from WoundsResearchers at Swinburne University of Technology in Australia have developed a bandage capable of “sucking” bacteria out of wounds, allowing for the simultaneous removal of bacteria when the bandage is taken off. Currently, this technology has not yet undergone human testing and has only been studied on skin models. The bacteria involved in the study include Escherichia coli and Staphylococcus aureus, both of which can cause chronic wound infections.
This bandage technology may seem somewhat excessive for minor everyday injuries, but it serves as an excellent preventive measure for immunocompromised patients, potentially reducing their risk of infection. This includes individuals with diabetes, HIV/AIDS, or cancer, as well as those with severe burns or located in remote areas.This bandage technology may have other applications as well, such as the development of bacterial filtration nets, protective clothing, or scaffold materials for tissue growth under sterile conditions. The next step is to test this bandage on human wounds.
▍ Capital
