Weekly Highlights of Internet Healthcare: Major Players Enter the Market as Baidu Partners with HealthyWay

Events & Perspectives

After venturing into cross-industry sectors such as football, mineral water, dairy, and grain and oil, Evergrande’s chairman Xu Jiayin has once again set his sights on the booming internet healthcare industry.

Last week, the listed company under EvergrandeEvergrande Health Partners with Southern Medical University to Establish Evergrande-Southern Health Management Center in Guangzhou, While Its First Internet Community Hospital Officially Launches.It is reported that Evergrande Internet Community Hospital has already attracted 1,200 top-tier doctors and professors worldwide to join its network, providing medical and health management services such as disease prevention, private physician care, remote consultations, online healthcare, and physical examinations.

In fact, in February of this year, Evergrande Real Estate acquired New Media for HK$950 million and later renamed it Evergrande Health. According to VCBeat, Evergrande Health will cover four major business areas: internet community hospitals, new international hospitals, medical aesthetics and anti-aging, and the elderly care industry.

Besides real estate tycoons, other recent cross-industry entrants include Huaping Shares and BOE.

AVCONLast week's announcement, itsWith Yibao Hulian MedicalInformation Technology (Beijing) Co., Ltd. signed the "Framework Agreement on Strategic Cooperation for the Medical Insurance 123 Mobile App,"Both parties intend to establish, via a doctor-patient communication platform, secure, rational, high-quality, and efficient physician services and personal services for the public.Under the agreement, Huaping Shares intends to invest RMB 30 million to subscribe for RMB 1 million of the target company’s newly increased registered capital, accounting for 9.091% of the target company’s total registered capital after the completion of the capital increase. According to VCBeat, Yibao Hulian has taken the lead in successfully developing the “Yibao 123” mobile app in China with the support of the Ministry of Human Resources and Social Security. Its main features include medical insurance account inquiries, convenient public services, interpretation of medical insurance settlement statements, medical insurance care services, public evaluation of physicians, and mobile handling of insurance-related affairs.

Another is a global leading provider of semiconductor display technologies, products, and services.BOE Technology GroupBOE Co., Ltd. last weekAnnouncement: Proposed Acquisition of 100% Equity Interest in Mingde Investment Co., Ltd. for RMB 250 Million Using Own Funds, designating it as the investment and development platform for BOE’s Smart Healthcare Services business, and increasing its registered capital to RMB 3 billion.Primarily used to support the development of Beijing Mingde Hospital, under Mingde Investment, and to facilitate subsequent preparations for the digital hospital.

On the same day, BOE also announcedSigned a Strategic Cooperation Memorandum with Dignity Health, One of the Largest Healthcare Service Providers in the United States, the parties plan to launch comprehensive strategic cooperation to jointly develop the Chinese market, with Dignity Health providing support for BOE’s existing and newly built hospitals.

Compared with the approaches of Evergrande, Warburg Pincus, and BOE, Baidu has already established a deep presence in internet healthcare.

Last week,Baidu and Health Road (China) Launch the “Healthy China, Baidu Direct Access” Project at the 13th China·Strait Project Achievement FairLeveraging Baidu’s domestic leadership in traffic, technology, and data, as well as the “Direct Connect” service’s capabilities in breaking through search barriers and enabling instant access upon search (“anytime, anywhere, direct access to what you need”), this project establishes a unified regional entry point for health services. It helps medical institutions fully mobilize their services, providing patients with functionalities such as medical visit information inquiry, access to medical services (including appointment registration, referrals, waiting notifications, payment, and report retrieval across the entire care journey), and doctor-patient interaction (e.g., physician consultations). This comprehensive approach meets the need to connect individuals with healthcare and medical services.

On the day,Baidu also signed a strategic cooperation framework agreement with Shanghai First Maternity and Infant Hospital.. By leveraging the combined strengths of Shanghai First Maternity and Infant Hospital’s existing medical technology resources and unique scenario-based advantages, together with Baidu’s leading capabilities in information technology and services, we will jointly explore the establishment of new O2O service models and innovative operational models in the healthcare sector.

andShanghai First Maternity and Infant Hospital Officially Launched the Mobile Healthcare Innovation Center Last Week. The Center has two core functions: first, to collaboratively develop mobile health products in the field of maternal and child health, providing patients with a convenient, efficient, and innovative healthcare experience; second, to evaluate existing mobile health products in this sector, select the most suitable ones for hospital implementation, and recommend them to peers. In the future, it will become an open innovation hub dedicated to the maternal and infant health industry.

New developments have emerged in the field of genetics. Last week,Sinopharm and Daan Gene Partner to Enter the Genetic Field。

Sinopharm and Daan Gene Have Officially Launched “Sinopharm Gene Technology Co., Ltd.” The company comprises a R&D center for genetic testing reagents, a GMP-compliant production center for genetic testing, and a distribution center for genetic testing reagents and instruments. It operates as a third-party independent medical genetic testing laboratory accredited by ISO 15189 and the College of American Pathologists (CAP). According to VCBeat, Sinopharm Gene will offer non-invasive prenatal genetic testing services for Down syndrome (T21), Edwards syndrome (T18), and Patau syndrome (T13). The company is committed to the research, development, production, and sales management of next-generation sequencing systems. With its headquarters in Changzhou, it plans to establish more than 20 chain third-party independent medical laboratories and regional clinical testing centers across China.

In the field of smart hardware, last week,Intel Announces Acquisition of Canadian Sports Smart Glasses Manufacturer ReconPrior to this, in March 2014, Intel acquired Basis Science, a smart wristband manufacturer. Last December, Intel announced a multi-year partnership with eyewear giant Luxottica in the smart glasses market. Although signs indicate that demand for products such as smartwatches and smart glasses has been less than satisfactory, Intel’s interest in wearable computing devices remains undiminished.

There is another piece of news:Renji Healthcare Plans to Spend RMB 440 Million to Acquire Mainland China’s Internet Medical Services。

Last week, China Renji Medical announced that it had entered into a non-binding memorandum of understanding with the seller and guarantor regarding the potential acquisition of the Target Group, which is primarily engaged in China in providing internet-based medical diagnosis/consultation services; research and development of internet medical systems; and the design and development of equipment related to internet medical service applications. The proposed consideration for the potential acquisition will not exceed RMB 440 million.

Also attached: 1. Last week, health wearable device manufacturersFitbit Officially IPOs on the NYSE, highly sought after by the market,With a market valuation of $6.5 billion, it secured $732 million in financing, becoming the largest venture capital exit in the wearables sector.

2.The First Neurosurgeon Group, Huiyu Medical, Is in Its Series A Financing Round。

Healthcare Reform

The State Council issued the "Guiding Opinions on Improving the Centralized Procurement of Drugs in Public Hospitals":According to the guidelines, improving centralized drug procurement in public hospitals is a crucial component and key link in deepening healthcare system reform. It holds significant importance for accelerating public hospital reform, standardizing pharmaceutical distribution order, and establishing a sound drug supply assurance system based on the National Essential Medicines System.

The General Office of the State Council Issued the "Several Policy Measures on Promoting the Accelerated Development of Socially Run Medical Institutions":The Measures primarily encompass four key areas. First, further relaxing market access requirements. This involves streamlining and standardizing approval procedures for medical institutions, publicly disclosing regional healthcare resource planning, reducing operational approval restrictions, and controlling the scale of public hospitals. Second, broadening investment and financing channels. This includes strengthening fiscal support, diversifying funding sources, and optimizing financing policies. Third, promoting the flow and sharing of resources. This entails fostering the co-construction and sharing of large-scale medical equipment, advancing multi-site practice for physicians, and strengthening professional collaboration. Fourth, optimizing the development environment. This involves implementing tax policies for medical institutions, including privately run healthcare facilities in the designated network of medical insurance providers, enhancing clinical standards and academic standing, standardizing fee-charging policies, improving regulatory mechanisms, and creating a favorable atmosphere.

The Measures specify that relevant departments shall promptly formulate or improve supporting measures, while leaving room for localities to conduct differentiated and diversified reform explorations. Localities shall develop specific work plans based on actual conditions and refine policy measures. A tracking mechanism for key tasks and a regular supervision system shall be established to ensure tangible results in accelerating the development of privately run medical institutions.

Implementation Guidelines for the "Guiding Opinions on Centralized Drug Procurement in Public Hospitals" Issued by the National Health and Family Planning Commission:The National Health and Family Planning Commission has officially issued the “Guiding Opinions on Implementing and Improving Centralized Drug Procurement in Public Hospitals,” which further elaborates on the State Council’s previously issued guidance. The document explicitly requires that the time interval from acceptance of drug delivery to payment by hospitals shall not exceed 30 days. In light of the current characteristics of mobile healthcare and internet-based informatization, it clearly proposes leveraging modern information technologies such as the internet and big data to continuously expand and upgrade the services and regulatory functions of procurement platforms, enhance the intelligence level of these platforms, and adapt to new features and requirements such as electronic contract signing, online payment and settlement, and web-based electronic transactions. These measures aim to create favorable conditions for direct settlement of drug payments between hospitals and pharmaceutical manufacturers, as well as for the settlement of distribution fees between manufacturers and distributors.

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Data

The pharmaceutical market size will exceed 2.2 trillion yuan in 2019
At the 73rd National Pharmaceutical Trade Fair, data from the "Blue Book of China's Health Industry (2015 Edition)," compiled by the China Pharmaceutical Industry Information Center, showed that from January to March 2015, the value-added output of pharmaceutical industrial enterprises above designated size in China increased by 11.1% year-on-year, a decline of 1.7 percentage points compared to the same period last year. The main business revenue of pharmaceutical enterprises above designated size reached RMB 581.937 billion, a year-on-year increase of 9.63%, which was 4.18 percentage points lower than the same period last year. However, driven by multiple favorable factors such as population aging, enhanced capacity to bear disease costs, and heightened health awareness, China’s pharmaceutical market is expected to maintain double-digit growth, with its market size projected to exceed RMB 2.2 trillion by 2019.

The global smart healthcare market size will reach $225.54 billion by 2022.
According to a survey by market research firm Grand View Research, the global smart healthcare market size is projected to reach $225.54 billion by 2022. Among the driving forces, the rapid advancement of medical information technology is a key factor fueling this growth.

Global Biotech Industry Becomes a “Hotspot,” with Market Capitalization Surpassing $1 Trillion for the First Time
According to the 29th Annual Biotechnology Industry Report released by Ernst & Young, the global biotechnology industry achieved record-breaking performance in 2014, nearly surpassing all financial benchmarks including revenue, profitability, and financing scale. Net income surged by 231% to reach $14.9 billion for the year. R&D expenditures by U.S. and European companies on new product development increased by 20%, while total financing for these companies reached $54.3 billion, with 94 new U.S. and European enterprises conducting initial public offerings (IPOs). Strong performance indicators, coupled with several high-profile successful products and a robust growth trend in new drug approvals, helped drive the industry’s total market capitalization above the $1 trillion mark for the first time.

In 2014, the wearable device market advertising was dominated by Fitbit, Garmin, and Samsung.
According to Kantar Media, wearable fitness device manufacturer Fitbit spent $21.6 million on advertising last year, ranking first in the wearable fitness device market. Garmin and Samsung followed closely behind, with $18.7 million and $11.6 million, respectively.

Canta Media stated that the key to Fitbit’s success lies in sharing achievements. A significant portion of Fitbit’s data is driven by user engagement, including their statistics and shared accomplishments, such as app trophies and badges. While most mainstream fitness tracker brands offer app-based rewards and features for competing with family and friends, Fitbit evidently holds greater appeal in this regard.

New Technologies

U.S. Scientists Achieve First-Ever Circadian Clock Transplant, Potentially Aiding Cancer Treatment
A team of scientists led by Dr. Pamela Silver, a synthetic biologist at Harvard University in the United States, has transplanted circadian rhythm circuits into a common bacterium that naturally lacks such rhythms, leveraging the circadian mechanisms discovered in cyanobacteria.

Japanese Experts: iPS Cell Technology May Make Rejuvenation No Longer a Dream
A research team at the University of Tsukuba in Japan recently announced that induced pluripotent stem cell (iPS) technology can effectively restore the function of skin cells, whose various capabilities decline with age.

Australian Scientists Develop Patch-Based Sensor
Researchers at RMIT University in Melbourne have developed a flexible wearable sensor. This device, no larger than a nicotine patch, can be applied to the skin to detect ultraviolet (UV) radiation and hazardous gases. According to researcher Philipp Gutruf, the team was able to fabricate an elastic electronic sensor patch less than 1 millimeter thick using common materials, such as zinc oxide—a key ingredient in sunscreen.

This Wearable Device May Save People Suffering from Urinary Incontinence
Lir Scientific has developed a new wearable device called Brightly. Brightly features a built-in biosensor that noninvasively monitors bladder distension. It sends alerts to the user’s smartphone via Bluetooth, providing advance notice when it is time to urinate.

BMC Cancer: New Technology Aids in Breast Cancer Diagnosis Through Urine Testing
Researchers from the University of Freiburg have developed a novel technology that aids in the detection of breast cancer by analyzing urine samples. This method determines the levels of microRNAs, molecules that regulate cellular metabolism and are typically dysregulated in cancer cells. By identifying the composition of microRNAs in urine, researchers have achieved a diagnostic accuracy rate of 91% for breast cancer using this technique.

Canadian Researchers Discover New Method for Detecting Cancer Biomarkers in Blood
According to the latest issue of Nature Chemistry, Canadian researchers have discovered a new method for detecting cancer biomarkers in human blood: using peptide nucleic acid clamps and nano-microelectronic chips to detect cell-free nucleic acids.

Japan Develops New Method for Cancer Detection Using a Single Drop of Blood
A research team from institutions including Showa University Koto Toyosu Hospital in Japan recently announced the development of a novel method for cancer diagnosis using only a single drop of blood. This approach primarily detects cancer by capturing light emitted by cancer-related substances in the blood. The procedure is simple, requiring just one drop of blood, and yields results within three minutes. The research team aims to achieve clinical application within one year.

“Silk Ink” Can Create Medical Gloves That Detect Bacteria
A joint research team led by biomedical engineers at Tufts University in the United States has developed a “silk ink” containing enzymes, antibiotics, antibodies, nanoparticles, and growth factors. This innovation enables the fabrication of medical products such as smart bandages and bacteria-sensing gloves, transforming inkjet printing into a new, more effective tool for applications in therapy, regenerative medicine, and biosensing. The findings were published online in advance in the journal Advanced Materials.

I. Imaging Technology Makes Brain Tumor Resection Safer and More Effective
A new study from Johns Hopkins University in the United States shows that an imaging technique called optical coherence tomography (OCT) can accurately identify tumor tissue in the brains of brain cancer patients in real time, enabling surgeons to remove brain tumors more safely and effectively.

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