Healthy Way Weekly Internet Healthcare Highlights (20150615)

Events and Perspectives

Last week, the internet healthcare sector saw a succession of high-profile events. These included the “5th China Healthcare Industry Investment and M&A Conference” hosted by Zero2IPO, the “11th China Health Industry Summit Forum” initiated by CEIBS, and Alibaba Cloud’s “2015 CHINC (China Hospital Information Network Conference).” For details on the key insights shared at these conferences, please refer to “After So Many Conferences, How Do Industry Leaders Really View Internet Healthcare? (The Most Comprehensive Insights)”。

Let’s take another look at the major events in internet healthcare that occurred last week.

First up, Alibaba has made another new move.

Last week,Alibaba Cloud Officially Announces the Launch of Its Healthcare Cloud at the “2015 China Hospital Information Network Conference”, providing professional cloud computing solutions for enterprises developing innovative applications in the healthcare and medical industry. Meanwhile, Alibaba Cloud will initially offer preferential policies, including a million-yuan cloud fund and free promotional support, to foster one hundred innovative medical enterprises.

The other two internet giants remained quiet this week, but the ambitions (or rather, stubbornness) of BAT in the internet healthcare sector are well known. Moreover, this “war” is set to become even more chaotic, as Old Zhou has once again inserted himself into the fray.

Last week,360 and Sinopharm Guohua, a subsidiary of China National Pharmaceutical Group (Sinopharm)It was announced that the two companies have signed a strategic cooperation framework agreement and will jointly invest to establish an e-commerce company,Building a New Pharmaceutical E-commerce Platform with Internet Thinking, thereby providing the public with affordable, convenient, and reliable one-stop online pharmaceutical shopping services. Both parties will address the challenges of difficult and costly access to medical care by starting from the pharmaceutical distribution end.

This collaboration aims to establish an online pharmaceutical sales platform with the most comprehensive product range, largest inventory, and highest safety standards. Sinopharm will provide the new company with the broadest possible resources and pharmaceutical categories to fully support the development of the e-commerce platform. Meanwhile, 360 Company will comprehensively assist in building the e-commerce transaction platform, ensuring its operational and transactional security. Additionally, 360 will provide a suite of technical support services—including search, cloud computing, big data, and mobile app development—as well as leverage its advantageous resources such as internet marketing capabilities and a vast customer base.

Last week, pharmaceutical companies were also quite active.

1. Medtronic will join forces with Samsung to develop diabetes management tools with enhanced mobility and integration.
At the 75th Annual Scientific Sessions of the American Diabetes Association held in Boston, Medtronic announced a collaboration with Samsung Electronics to develop an Android-based mobile health management platform for patients with diabetes and their healthcare providers. This partnership will yield an internet-enabled application that pairs Samsung devices with Medtronic’s MiniMed Connect platform, linking patients, insulin pumps, glucose monitoring systems, and healthcare service providers.

Analysis suggests that, both in the short and long term, this solution can significantly improve the lifestyle habits of patients with diabetes and reduce costly and dangerous complications associated with treatment.

In addition, according to VCBeat,SamsungRAPIDO, the fashion sports brand under the group,Last week, an outer garment named “Connected Wear” was launched., named the “Long-Distance Sensing Hoodie” in Chinese, is designed to help alleviate the longing of couples in long-distance relationships by promptly reflecting each other’s emotional states in real time, thereby making expressions of love more authentic and visible.

2. Hybio Pharmaceutical Invests in Baishengkang to Perfect the Mobile Healthcare Closed Loop
Last week, Hybio Pharmaceutical announced that it had recently signed a framework agreement with Baishengkang Health Technology (Beijing) and its controlling shareholder. The company plans to make a strategic investment of RMB 60 million to acquire a 30% equity stake in Baishengkang through a capital increase via subscription.

It is understood that Baishengkang focuses on establishing an intelligent backend system for mobile internet-based chronic disease management and offers a range of internet-based products. For Hybio Pharmaceutical, this collaboration represents a step toward perfecting its “drug + device + mobile internet” trinity chronic disease management platform and will continue to advance its “Internet Plus” strategy.

3. Novo Nordisk Launches Diabetes “Cocktail” Xultophy in the UK, Offering Both Glucose-Lowering and Weight-Loss Benefits
Diabetes giant Novo Nordisk recently announced the launch of its diabetes "cocktail" therapy, Xultophy (IDegLira), in the United Kingdom, marking the third European Union country to introduce the product following successful launches in Switzerland and Germany earlier this year. As the world’s first fixed-ratio combination of a long-acting insulin and a GLP-1 receptor agonist, Xultophy offers both glycemic control and weight-loss benefits, representing a significant breakthrough for patients with type 2 diabetes. Industry experts predict that Xultophy will become another blockbuster product for Novo Nordisk, with annual peak sales exceeding $1 billion.

Another highly publicized case is that,Ping An Pension Insurance Launches Its First Internet-Based Cancer Medical Insurance Product。

Recently, Ping An Pension & Insurance has taken another step forward in internet-based business models and product innovation by launching its first individual cancer medical insurance product sold exclusively via mobile and online channels. This industry-first cancer medical insurance policy, which requires no medical examination, features four key advantages: “High,” “Low,” “Easy,” and “Comprehensive.”“High” refers to high coverage limits and an extended eligible age range. The sum insured for outpatient and inpatient cancer treatment expenses can reach up to RMB 200,000. The maximum age for initial enrollment is 50 years, with renewal available up to age 85.“Low” indicates low premiums. For example, a 25-year-old male can obtain RMB 100,000 in coverage for just RMB 66 per year.“Comprehensive” means extensive coverage of cancer types and related expenses. Ping An’s Cancer Medical Insurance specifically includes coverage for carcinoma in situ and carcinoid tumors. Reimbursement is not limited to medications covered by social security insurance, with a maximum reimbursement rate of 100%.“Easy” signifies a simple and quick enrollment process. No medical examination is required; applicants can enroll and pay via mobile devices. Automatic renewal is also available, with no waiting period in the second year.

The concept of physician groups has gained global popularity. In China, in addition to the cohort led by Zhang Qiang as a benchmark, another group is also venturing into this space.Shanghai International Medical Center Launches Physician Partner Program。

Recently, at the “Precision Medicine Era Forum” held in Shanghai, Zhang Chengyu, President of Shanghai International Medical Center (SIMC), announced that SIMC would pilot a physician partnership model, aiming to create an “ideal realm for physicians” and deliver “patient-centered” medical services.

In an era defined by mass entrepreneurship and global innovation, what kind of “butterfly effect” will the physician partner model introduced by Shanghai International Medical Center have on advancing China’s healthcare system reform? Only time will tell.

Note: To facilitate the implementation of the tax-preferential policies for health insurance,China Insurance InformationThe Technology Management Co., Ltd. will collect and organize health insurance industry data, and implement centralized data management with the aim of building a big data platform for health insurance to provide services to insurance companies.

VCBeat Exclusive

Overview of Google's Internet Healthcare Strategy

How Strong Is Entrepreneurship in Medical Imaging? Look at the Top 11 Overseas Apps

30 Most Notable Healthcare Startups to Watch in 2015: Rip Road Teaches You to Be a “Smart Patient”

The 30 Most Notable Healthcare Startups to Watch in 2015: Proteus Digital Health’s Smart Pill for Easy Health Monitoring

VBInsight Think Tank Session No. 5 | Hear Top Investors Discuss Smart Hardware + Healthcare, and See How Cool Startups Solve Real Pain Points

VCBeat’s Startup Showcase is about to begin. You are welcome to showcase your projects, products, and dreams for free.

CB Insights: A Review of Funding Activity and Trends in the U.S. On-Demand Mobility Services Sector

“Glucose Manager” Receives RMB 60 Million Investment Intent from Hybio Pharmaceutical

“Haodaifu Online” Secures $60 Million in Series C Funding

Interpretation of Trending English Terms in Digital Health:HIE/E-referral

Data

The Lancet: Our Health Is Not Optimistic
A recent analysis of global health indicates that in 2013, only about 4% of the world’s population was free of any health problems. One-third of the population, approximately 2.3 billion people, suffered from at least five health conditions. Moreover, the situation is worsening rather than improving: according to the Global Burden of Disease Study, the proportion of healthy individuals worldwide has been declining year by year, with the prevalence of disease rising from 21% in 1990 to 31% in 2013. The growing elderly population also means that the number of people living with health problems will surge rapidly in the coming decades.

The Global Mobile Health Market Will Maintain Rapid Growth Over the Next Five Years
According to a report released by research firm Allied Market Research, the global mobile health market is projected to achieve a compound annual growth rate (CAGR) of 33.5% over the five-year period from 2015 to 2020. The market size was valued at $10.5 billion in 2014.

In terms of devices, blood pressure monitors will hold the largest market share, followed by blood glucose meters and electrocardiogram (ECG) monitors; these three device categories will account for 71% of the mobile health device market. Among them, blood glucose meters are experiencing the fastest growth, with a compound annual growth rate (CAGR) of 41%.

In the mobile health services sector, diagnostic, monitoring, and therapeutic services accounted for 74% of the market share last year.

By region, North America and Europe account for the majority of the global mobile health market share, contributing 67% of revenues last year. In the North American market, the United States is poised to maintain its leading position over the next five years.

The report indicates that the key drivers propelling the growth of the mobile health market include the expansion of mobile network coverage, the increasing prevalence of chronic diseases, and heightened health awareness among patient populations in emerging markets. Meanwhile, the report also highlights several barriers impeding market development, such as limited insurance coverage, regulatory uncertainties in certain regions, and low adoption rates of mobile health solutions among the elderly population.

New Technologies

Biomaterials Journal: Researchers Synthesize Functional Immune Organ Artificially for the First Time
Researchers from Cornell University have artificially synthesized a functional immune organ capable of secreting antibodies, which can be manipulated in the laboratory under completely ex vivo conditions. This marks the first-ever artificial synthesis of such an organ.

Japan Develops Bandage-Like Artificial Skin, Promising for Emergency Treatment of Burns
The National Agriculture and Food Research Organization (NARO), in collaboration with Saga University, has developed a bandage-type artificial skin. This high-strength film is composed of densely packed collagen fibers derived from porcine collagen. It helps prevent significant scarring after trauma and holds promise for emergency treatment of burns.

Capital