Weekly Highlights of Internet Healthcare: HealthyWay News Digest July 6, 2015

Events & Perspectives

At the beginning of July, major institutions have successively conducted summaries and analyses of the internet healthcare sector in the first half of 2015.

Among them,StartUp Health Releases Report on Internet Healthcare Startup AcceleratorIt is pointed out that investment trends in the digital health sector once again indicate a maturing market. The overall investment volume in digital health during the first half of this year was comparable to that of the first half of 2014; however, there was a significant increase in the number of deals involving later-stage startups. Furthermore, a total of 226 investment transactions occurred in the global digital health market in the first half of this year, with a total investment amount of $2.8 billion. In contrast, throughout the entire year of 2014, there were 551 transactions, with an investment volume of $6.9 billion.

VCBeat also summarized the investment and financing situation of China's internet healthcare sector in the first half of 2015 last week.. The report found that venture capital investment in China’s internet healthcare sector reached $780 million in the first half of 2015. Excluding the large-scale equity deals involving machine-related companies in 2014, the total for the first half of 2015 actually surpassed the full-year total for 2014.

On the first day after the first half of the year, the telemedicine companyTeladoc Officially Listed on the New York Stock Exchange, with a market capitalization exceeding $1 billion on its first day of listing. It is understood that the proceeds from this IPO will be used to acquire or invest in other businesses, products, or technologies to expand its existing operations.

There is also one company that has attracted widespread attention.Nanthealth Secures Another $200 Million in Equity FinancingThis round of financing primarily came from Allscripts, the leading company in mobile electronic medical record products, and NantCapital, a private investment firm under Dr. Patrick Soon-Shiong, founder of NantHealth. For NantHealth, this collaboration enables them to better cooperate in developing an integrated personalized healthcare solution. This product can provide personalized medical measures based on patient conditions and offer actionable clinical data to doctors. With access to complex genomic and proteomic data analysis results, doctors can make better decisions to help patients manage their conditions.

Beyond the aforementioned attractive financing, last week,The integration of genetics and insurance has suddenly gained momentum: BGI received a RMB 2 billion investment from Taikang; TopGene entered into a deep strategic partnership with Qianhai Life Insurance; and BGI jointly launched a product named “Zhiyinbao” with ZhongAn Insurance.

Additionally,By-Health Also Partners with Ping An Good Doctor to Expand into the Big Health IndustryLast week, By-Health announced that it had signed a strategic cooperation framework agreement with Ping An Good Doctor, aiming to foster cross-sector collaboration between the insurance and healthcare industries. The two parties will jointly build a professional platform for health consultation and doctor-patient engagement, providing bundled services ranging from daily health advice to medical consultations for the broad population of individuals in sub-optimal health or suffering from diseases.

Pursuant to the Agreement, the comprehensive cooperation between the Parties includes, but is not limited to, brand collaboration, product collaboration, and sharing of channel resources. In the future, new areas of cooperation will be explored in nutrition, personal health, and other related fields. Specific cooperation agreements shall be separately executed following mutual consultation by the Parties and in accordance with applicable laws, regulations, and their respective internal approval procedures. To this end, the Parties shall maintain regular communication, optimize existing cooperative projects, explore new areas of collaboration, and thereby continuously deepen their strategic partnership.

This promising landscape has attracted numerous industry giants to cross over into the sector, including players from technology, apparel, and banking. Now, surprisingly, video platforms have entered the fray as well.

Last week,LeEco and Shanghai Kingstar Winning SoftwareAnnounced jointly in Beijing, the two parties will establish a strategic partnership, focusing on the demands for public health services and the development trends of the health service industry, while fully leveraging their respective advantages in their fields.Building a Cloud Hospital in the Internet+ Era. Based on the published content, the collaboration primarily covers four areas: content services, application services, service platforms, and innovation services.

While many players were enjoying themselves in this sector, Alibaba Health announced its annual results for the year ended March 31, 2015. The announcement stated that the annual loss attributable to owners of the Company amounted to HK$101 million (approximately RMB 80 million), representing a 159% increase from the loss recorded in the previous fiscal year.

Just as the outside world was still speculating whether Alibaba Health would “abandon pharmaceuticals to embrace healthcare,”Alibaba Healthhas quietly begun to integrate relevant pharmaceutical e-commerce resources,Fully developing a brand-new B2C+O2O pharmaceutical retail model (app)This new three-dimensional medication purchasing model offers users more diverse and intelligent options, comprehensively enhancing their experience and satisfaction during the online medication buying process. The Ali Health App will henceforth focus more on bridging information channels between healthcare providers and between doctors and patients, connecting with medical institutions to improve healthcare efficiency, and thereby delivering a more personalized healthcare experience for users.

Moreover, in terms of functionality, the upcoming app not only retains the online search and ordering features already available through the Taobao Mobile and Tmall apps, but also introduces new modules such as intelligent pharmaceutical guidance, logistics and delivery options, medication safety alerts, and prescription drug scanning. Although insiders from Ali Health did not provide further details, it is understood that the app essentially covers the entire service process required by users when purchasing medications.

Another company that has recently entered the pharmaceutical e-commerce sector is Conba.Last week, Zhejiang Conba Pharmaceutical Co., Ltd. announced the completion of industrial and commercial change registration for its acquisition of a 26.44% equity stake in Zhejiang Zhencheng Medicine Online Co., Ltd. The announcement revealed that Conba now holds a 57.25% equity stake in Zhencheng Medicine, successfully becoming the holding company of this giant in the pharmaceutical e-commerce sector.

This acquisition by Conba has enabled its proprietary pharmaceutical brands to expand from traditional offline channels to online platforms, enhancing the breadth and depth of product marketing. It also accelerates the integration of the company’s internal marketing resources. Furthermore, it will provide abundant drug resources to Zhencheng Pharmaceutical, which Conba acquired, thereby speeding up its rollout of the “50,000 Pharmacy Alliance” initiative. This move is expected to drive the market launch and sales volume growth of previously unlisted or low-volume products, ultimately boosting the company’s overall profitability.

Brief:
The Shanghai Municipal Committee of the Chinese People's Political Consultative Conference held a special consultation meeting on “Deepening the Reform of Public Hospitals.” It was announced at the meeting thatShanghai Is Implementing a Three-Year Action Plan for Medical Price and Service Adjustments to End the Practice of Subsidizing Healthcare with Drug Profits. In the future, some secondary hospitals in Shanghai will be converted into nursing homes, while tertiary hospitals and specialized hospitals will discontinue outpatient services, accepting only patients with complex and refractory conditions as well as inpatients.

Huang Huabo, Deputy Director of the Social Insurance Administration Center under the Ministry of Human Resources and Social Security, stated on June 30, by 2014, the number of designated medical institutions for urban basic medical insurance had exceeded 120,000, among which 36,600 were private institutions, accounting for approximately 30% of all designated institutions.Designated medical institutions, whether private or public, shall be treated equally. Any institution that voluntarily applies to provide designated health insurance services and engages in fair competition may be included in the designated management system.。

Healthcare Reform

Chongqing to Pilot Integrated Medical Insurance and Fitness Card: Medical Insurance Balances Can Be Used for Sports and Fitness
The Chongqing Municipal People’s Government has officially issued the “Implementation Opinions of the Chongqing Municipal People’s Government on Accelerating the Development of the Sports Industry and Promoting Sports Consumption,” explicitly stating that by 2025, the total scale of the sports industry will quadruple, the pass rate in random sampling tests of citizens’ physical fitness will remain among the highest nationwide, and a series of measures—including an integrated medical care and fitness card—will be introduced to stimulate sports consumption.

VCBeat Exclusive

The Brightest Star in the Night Sky: A Comprehensive Review of the Internet Healthcare Ecosystem and the Official Launch of the VB Star Startup Support Program

Teladoc Becomes the World’s First Online Consultation Company to Go Public, with Market Capitalization Exceeding $1 Billion on Its First Day of Trading

Internet Healthcare Strategies of Top Health Insurance Companies

Which five internet healthcare companies were acquired by pharmaceutical giants in 2014?

Report on Investment and Financing in China's Internet Healthcare Sector for the First Half of 2015 and Q2

Comprehensive Guide: Global Internet Healthcare Investment and Financing Report

StartUp Health Insights: Digital Health Innovation Should Transcend the Homogenization of “Me-Too” Products

30 Most Notable Healthcare Startups to Watch in 2015: Kurbo, the Healthy Weight-Loss Expert for Overweight Children

Kangxun 360: Why Are We Giving Away Blood Glucose Meters for Free?

Yixin Technology: The First Internet Healthcare Company Invested by SoftBank China

The True Revolution in Internet Healthcare Will Come from Physicians Who Break Through Their Own Limits

Interpretation of Hot English Terms in Internet Healthcare:GPO/GP

Data

Medical Video Consultation Services to Reach 158.4 Million Visits in 2020:According to data from market research firm Tractica, the number of medical video consultations and inquiries in 2014 was 19.7 million, a figure projected to grow to 158.4 million by 2020. Physicians primarily use video for consultations with other physicians, while patients utilize it to consult their own doctors regarding medical conditions. Currently, 75% of medical video usage is for clinical consultations; however, Tractica predicts that the volume of non-clinical consultations and inquiries conducted via medical video will surge in the coming years. By 2019, the number of medical video interactions in non-clinical settings is expected to surpass those for clinical consultations.

Self-Monitoring Health Device Market to Reach $18.8 Billion in 2019:BCC Research reports that the global market for self-monitoring health technologies was valued at $1.1 billion in 2013, reached $3.2 billion in 2014, and is projected to reach $18.8 billion by 2019.

According to BCC Research, self-monitoring health technologies are defined as products that enable consumers to monitor their own health. Devices in this category include wristbands, smartwatches, and smartphone apps, with smartphones serving as hubs that collect data from health monitoring devices as well as from their own built-in sensors. BCC also identifies hub products such as Apple’s HealthKit platform and Google Fit.

Digital Health to Save the U.S. $200 Billion in Chronic Disease Costs:Goldman Sachs released a report stating that the current landscape of heart disease, asthma, and diabetes provides the most fertile ground for digital health, as adjustments in data and treatment models have been proven to improve patient outcomes, reduce adverse events, and lower healthcare costs. The firm predicts that, in the near future, the digitization of healthcare will save the United States $305 billion in medical costs. Of this amount, $200 billion will stem from the chronic disease management market, primarily due to reduced redundant expenditures driven by digitalization. Furthermore, Goldman Sachs indicated in the report that short-term revenue in the digital healthcare market could reach $324 billion.

Global digital health market financing reached $2.8 billion in the first half of this year:StartUp Health, an internet healthcare startup accelerator, recently released its Global Internet Healthcare Investment and Financing Report for the first half of 2015. The report points out that investment trends in the digital health sector once again indicate a maturing market. While the overall investment volume in digital health during the first half of this year was comparable to that of the same period in 2014, there was a significant increase in the number of deals involving later-stage startups.

The global home healthcare market is projected to reach $355.3 billion in 2020:According to the latest research report released by U.S. market research firm Grand View Research (GVR), the global home healthcare market is projected to reach $355.3 billion by 2020, with a compound annual growth rate (CAGR) of approximately 7.8% from 2014 to 2020.

The Self-Monitoring Health Device Market Will Reach $18.8 Billion in 2019:BCC Research reports that the global market for self-monitoring health technologies (products that enable consumers to monitor their own health) was valued at $1.1 billion in 2013, reached $3.2 billion in 2014, and is projected to reach $18.8 billion by 2019.

Total Market Value of 3D Printing in the Medical Field to Reach $4 Billion:According to a research report by the UK market research firm Visiongain, the total value of the 3D printing market in the healthcare sector is projected to reach $4 billion in 2018. (Applications of 3D printing in the medical field include personalized surgical implants, scaffolding, and tissue regeneration.)

New Technologies

Swimming Microrobots
Daegu Gyeongbuk Institute of Science and Technology (DGIST) in South Korea, in collaboration with ten other research institutions worldwide, has jointly developed a “swimming microrobot.” This robot can navigate through human blood and identify target sites (drug delivery areas). It can also be controlled externally, allowing it to move freely within the bloodstream. Its primary component is inorganic biodegradable beads, which do not trigger an immune response in the human body. Its size and surface properties can be adjusted to accurately address various types of arterial occlusion.

Helping Mothers Determine If Stored Breast Milk Has Expired
Mommy’s Watches is a device that resembles a watch without a dial, designed to be fitted onto baby bottles containing breast milk. With this device, new mothers, fathers, or other caregivers can assess whether the breast milk is safe for infant consumption.

Panasonic Launches Wearable Robot to Help Reduce Lower Back Strain
According to The Nikkei, Panasonic will launch “Assist Suite,” a wearable robot designed to assist with tasks such as loading and unloading heavy items, primarily targeting customers including logistics companies and construction firms.

Reportedly, Panasonic is set to launch the “Assist Suite AWN-03,” a robotic device designed to alleviate lower back strain. Powered by motors that support the user’s upper body, this robot reduces the load on the lower back by approximately 15 kilograms during object lifting and carrying. Constructed with carbon fiber components, it weighs only 6 kilograms and can operate for up to 8 hours on a full charge. The robot is priced at around 1 million yen (approximately RMB 50,300), while Panasonic is also considering offering it for rent at roughly 50,000 yen (approximately RMB 2,500) per month.

Capital