Weekly Highlights of Internet Healthcare: May 25, 2015

Events and Perspectives

Last week, Tencent led the investment in U.S. healthcare company Tissue Analytics, while Huawei and Chunyu made strategic moves in health big data. And there’s more... please read on.

First,Tencent, overseasInvested in Tissue Analytics, a company primarily focused on remote chronic wound care.Users need only take a photo of the wound using their smartphone camera, and the system will automatically measure various wound parameters, such as surface area, length, and width, quantify the healing progress, and provide remote chronic wound care solutions. The total investment amounted to $750,000. Additionally, DreamIt Health and angel investors from Pennsylvania’s healthcare sector also participated in this funding round.

Last week,Chunyu Doctor and University of Chinese Academy of Sciences Establish Health Big Data LaboratoryAccording to VCBeat, this collaboration will open Chunyu’s data interfaces to the laboratory, enabling the Big Data Laboratory to develop health stream data models. The project will focus on data modeling for 20 common diseases among the Chinese population, defining standards for data collection and transmission. By leveraging machine learning algorithms, the system will provide automated health warnings for these 20 conditions; if any indicator shows an abnormality, users will receive health status alerts via the internet. Additionally, Zhang Rui, founder of Chunyu Doctor, announced other objectives for the laboratory, including utilizing health consumption behavior data to enhance the cost-effectiveness of medication and treatment for users through data analysis and accumulation, thereby reducing medical insurance claim rates.

Huawei is also delving into big data. Last week,Huawei and the First Affiliated Hospital of Zhengzhou University Establish Joint Innovation Center for Telemedicine and Medical Big Data. Both parties will jointly create a demonstration base for telemedicine with global industry influence, build a complete telemedicine industrial chain, and promote the development of telemedicine in China and even worldwide.

While major tech giants have continuously shifted and expanded their internet healthcare initiatives, Jack Ma has remained focused on deeply cultivating the online healthcare sector.

Last week,Yunfeng Capital Invests Nearly RMB 100 Million in Series A Financing for Hengsheng Yuntai, the Subsidiary Under Hundsun Technologies’ Online Healthcare BusinessThis round of investment serves two purposes for Hengsheng Yuntai: first, to support the development of mobile healthcare products for hospitals; and second, to provide health-conscious individuals with a one-stop internet-based healthcare service covering pre-consultation, during-consultation, post-consultation, and daily health management. For Jack Ma, behind Yunfeng Capital, this represents another strategic move in Alibaba’s online healthcare sector. Although Hengsheng Yuntai was officially registered in March 2015, its products have since covered 21 provinces, autonomous regions, and municipalities across China. The company has signed agreements with more than ten provincial and prefecture-level regional platforms and over 300 large and medium-sized hospitals, serving nearly 200 million users nationwide.

Overseas News: Recent Internet Seed Funds and Startup IncubatorsRock Health has identified the digital health companies most likely to file for an IPO next, including: digital medicine manufacturer Proteus Health, wearable device developer Jawbone, and free electronic health record providers Practice Fusion and Health Catalyst.

Another piece of news is that, according to foreign media reports,L'Oréal to Partner with Biotech Company Organovo for 3D Skin Printing, for use in experimental sample research. According to VCBeat, similar skin-printing technologies were once considered a means to accelerate the healing of facial injuries.

Finally, here is some good news to help you unwind. Baymax, the protagonist from *Big Hero 6*, has made his public debut—and he is of Chinese origin. He is developed byChina's Third-Party Health Service Platform: Yi JiankangSpanning four years,A Robotic Doctor Developed: Duomei Xiaoyi, just like “Da Bai,” it can simulate real doctor consultations and also chat casually with users. When users are in a bad mood, Xiao Yi will give them a “bear hug,” and is available 24/7. According to VCBeat, Duomei Xiao Yi can also open its API interfaces and has already been integrated into Ali Health’s intelligent consultation module.

Healthcare Reform

Beijing’s Public Hospitals to Phase Out Public Institution Staffing Quotas:Beijing Releases "Opinions on Innovating the Management of Public Institutions and Accelerating Classified Reform"Going forward, existing public institutions in Beijing, such as higher education institutions and public hospitals, will retain their status as public institutions but will explore exclusion from the bianzhi (staffing quota) management system. Current personnel within the bianzhi system will be subject to real-name registration, and staffing quotas will be gradually reclaimed through natural attrition.

Jiangsu to Scrap Government Pricing on Drugs Starting Next Month:The Jiangsu Provincial Price Bureau announced that, effective June 1 this year, government pricing will be abolished for all drugs except narcotic drugs and Class I psychotropic substances. For these exempted categories, the National Development and Reform Commission (NDRC) will continue to impose maximum ex-factory and maximum retail prices. Prices for all other drugs will henceforth be determined by market forces through various mechanisms.

The State Council released "Made in China 2025," with biopharmaceuticals and high-performance medical devices designated as key priority areas:The State Council issued "Made in China 2025," which clarifies the development path for China's manufacturing industry to transition from "large to strong" and serves as the action plan for the first decade of implementing the strategy to build a manufacturing powerhouse. The notice proposes nine strategic tasks and priorities, including enhancing national manufacturing innovation capabilities and promoting the deep integration of informatization and industrialization, with a focus on ten key areas such as high-end CNC machine tools and robotics, aerospace equipment, biopharmaceuticals, and high-performance medical devices.

The General Office of the State Council Issued the "Guiding Opinions on the Pilot Reform of Comprehensive Urban Public Hospitals":The General Office of the State Council publicly released the "Guiding Opinions on Pilot Comprehensive Reforms of Urban Public Hospitals," proposing that by 2017, pilot comprehensive reforms of urban public hospitals would be fully rolled out. All public hospitals in pilot cities would advance the separation of pharmaceutical services from medical services, eliminate drug markups (with the exception of traditional Chinese medicine decoction pieces), and dismantle the profit-driven mechanisms of public hospitals.

VCBeat Exclusive

Overview of Alibaba's Internet Healthcare Layout

Overview of IBM’s Internet Healthcare Strategy

Cross-Border M&A in Internet Healthcare Reaches a Fever Pitch

30 Most Noteworthy Healthcare Startups to Watch in 2015: NeuroTrack Predicts Alzheimer’s Disease 3 to 6 Years in Advance

30 Most Promising Healthcare Startups to Watch in 2015: Medicast—Summon a Doctor for a House Call with Just a Tap on Your Mobile App

Smoking Cessation Has Entered the Mobile Era—Did You Know?

Silicon Valley Bank: 2014 Healthcare Industry Review and 2015 Investment and Exit Forecast

What Is Hindering the Shift of Drug Development Toward Internet Healthcare?

Artery Interview |tosee: A Smoking Cessation Tool for the New Era

Interpretation of Trending English Terms in Internet Healthcare:PHP/epill

Data

In China, the dental caries prevalence rate among children is as high as 66%, while the treatment rate remains below 3%:Professor Deng Hui of Peking University School and Hospital of Stomatology recently stated that the dental caries prevalence among children in China is as high as 66%, falling far short of the World Health Organization’s 2020 target of reducing childhood caries prevalence to zero. Moreover, the treatment rate is less than 3%, and the toothbrushing rate stands at only 19%. According to Professor Deng, China faces a severe shortage of pediatric dentists, with an average of one pediatric dentist for every 36,000 children. In contrast, developed countries and regions such as the United States and Europe typically have one pediatric dentist per community.

Over 26 Million Depression Patients in China, Only 10% Receive Pharmacological Treatment:Liu Dan, a clinical supervisor at the Student Psychological Counseling Center of Tsinghua University, stated that there are currently over 26 million people with depression in China, but only 10% receive pharmacological treatment. According to her, the prevalence of depression in China is approximately 3% to 5%, among whom about 10% to 15% are at risk of suicide. The recognition rate for depression in hospitals at the prefecture level and above across China is less than 20%, and fewer than 10% of existing patients receive relevant pharmacological treatment. Globally, the number of individuals with depression is increasing at an annual rate of 1%, and severe depression carries a 30% mortality risk. The success rate for depression treatment is approximately 70% to 80%. However, the relapse rate reaches 75% among patients who discontinue treatment after symptom remission.

Grip Strength Is a Better Predictor of Mortality Than Systolic Blood Pressure:According to an analysis of a study by PURE involving nearly 140,000 patients across more than ten countries, every 5-kilogram decrease in grip strength was associated with a 16% increased risk of all-cause mortality, and a 7% and 9% increased risk of myocardial infarction and stroke, respectively.

Male Users Emerge as the Main Force, with Post-80s Generation Showing the Strongest Preference for “Watches”:According to the "Report on Apple Watch User Behavior in China," male users dominate the domestic Apple Watch user base, accounting for 67%, while female users make up 33%. In terms of age distribution, Apple Watch users are primarily concentrated between the ages of 25 and 40. The post-80s generation, currently in their prime working years, naturally forms the core group, representing 45%. They are closely followed by the post-90s generation, which accounts for 34%, demonstrating significant influence. The post-70s generation comprises 12%, while the post-00s generation makes up only 8%.

Global shipments of wearable smart patches are expected to reach 12.3 million units in 2020:According to research firm Tractica, global shipments of clinical and non-clinical smart wearable patches (smart patches, tattoos, and small devices attached to the skin) are projected to reach 12.3 million units in 2020, with a total value of approximately $3.3 billion, compared to just 67,000 units shipped last year.

Older Adults Who Exercise 3 Hours a Week May Live 5 Years Longer:A study conducted by Oslo University Hospital on 5,700 Norwegian adults aged 68–77 found that both light and vigorous physical activity can extend lifespan. Individuals who engaged in three hours of exercise per week lived approximately five years longer than those with a sedentary lifestyle. The researchers issued a gentle warning to seniors who are reluctant to exercise, urging them to increase their physical activity levels.

Blood Pressure Control Rate Among Medication-Taking Population in Shanghai Is Only 40%:The latest data from the Shanghai Institute of Hypertension in 2015 shows that the hypertension control rate among the Shanghai population is low, with only about 40% of those taking antihypertensive medications achieving blood pressure control. Currently, Shanghai sees an annual increase of 200,000 elderly individuals, over 50% of whom suffer from hypertension.

Beijing Has 4.19 Million Smokers, with Over 10 Million People Exposed to Secondhand Smoke:A survey reveals that Beijing has 4.19 million smokers, with an adult smoking rate of 23.4% and an average daily consumption of 14.6 cigarettes per smoker. Over 10 million people in the city are exposed to secondhand smoke, with bars, nightclubs, and restaurants being the most severely affected areas. Although more than 33% of smokers plan to or have attempted to quit, only 14.9% have succeeded. The success rate for women quitting smoking is nearly twice that of men.

2% of women’s health apps are developed by healthcare professionals:According to a study published in Obstetrics & Gynecology, 20% of apps can help women track their physiological health, approximately 23% of apps allow users to personalize tracking of irregular menstrual cycles, and only 2% of women’s health apps are developed by medical professionals. Among nearly 100 iOS apps focused on tracking women’s physiological health, only a few have been recommended by experts in women’s health.

The Global Telemedicine Market Will Reach $21 Billion by 2020:A recent report jointly released by McKesson, Philips Healthcare, GE Healthcare, and Cerner Dominating indicates that the global telemedicine market (including hardware, software, and services) was valued at $17.8 billion in 2014, with a projected compound annual growth rate (CAGR) of 18.4% from 2014 to 2020, reaching a market size of $21 billion.

Overseas

The UK Implements a Seven-Day Healthcare System:British Prime Minister David Cameron, who has just been re-elected, announced recently that the government will increase annual funding for the National Health Service (NHS) by £8 billion by 2020. The NHS will also expand its services from five days a week to seven, establishing a fully operational seven-day-a-week system to ensure patients can access medical care anytime and anywhere.

New Technologies

Nature Methods: Capturing Circulating Tumor Cells Using Microchips

The international academic journal *Nature Methods* published the latest research progress by American scientists, who have developed a microchip capable of capturing populations of circulating tumor cells (CTCs) from blood. This advancement is of great significance for studying the role of CTCs in tumor development and metastasis.

New Technology Transforms Smartphones into DNA-Scanning Microscopes
The research group led by Aydogan Ozcan at the Howard Hughes Medical Institute, University of California, Los Angeles (UCLA), has developed a new technology that enables smartphones to function as DNA-scanning fluorescence microscopes. This system consists of an optical accessory for smartphones—a small 3D-printed box containing components such as lenses, filters, mounts, and laser diodes—capable of measuring the size of DNA molecules, which are 50,000 times thinner than a human hair, and performing DNA imaging. After isolation, the target DNA is first labeled with fluorescent markers. A Windows application on the smartphone scans the DNA molecules and transmits the data to a remote server located in the research group’s laboratory, where the measurement of DNA molecule size is completed. The entire data processing procedure can be finished within 10 seconds.

Electrically Charged Band-Aids
The University of Manchester in the UK is trialing an electrical stimulation technology applied to “smart bandages,” which can effectively accelerate wound healing. Controlled trial results show that participants who received electrical pulses exhibited significantly reduced wound sizes after two weeks.

Sweden Develops Revolutionary Pain Relief Device
Researchers at Linköping University in Sweden have developed a remarkable device—the organic ion transistor. It delivers the body’s unique, natural pain-relieving chemical signals, intercepting them in the spinal cord before they reach the brain.

EPJD: High-Tech Empowers Cancer Treatment
A recent study published in the international journal The European Physical Journal D reports that foreign researchers have demonstrated that carbon-based nanoparticles can be used to sensitize cancerous tumors to proton radiotherapy and induce the targeted destruction of cancer cells.

Japan Develops New Paper-Based Battery That Generates Electricity from Urine, Expected to Serve as Both Sensor and Power Source
A research team at Tokyo University of Science in Japan has developed a paper-based battery capable of generating electricity from sugars found in urine, with the potential to function as both a sensor and a power source. The paper battery is fabricated by impregnating paper with enzymes; when these enzymes break down sugars in urine, electrons are released. These electrons are then collected by silver particle wiring printed on the paper, thereby generating electricity.

Headphone-Style Devices Can Treat Tinnitus and Alleviate Patient Suffering
A device called Mutebutton can help the brain shut off the noise of tinnitus with just 30 minutes of daily use. The system includes headphones and a lollipop-shaped device placed on the tongue, which delivers synchronized stimulation to the tongue in tandem with soothing music and natural sounds. The headphones are connected to a signal generator about the size of a smartphone. Clinical trial results have shown that it can reduce tinnitus volume by 40%.

Electronic Skin Turns the Entire Body into a Computer
Professor John Rogers of the University of Illinois at Urbana-Champaign has developed a flexible microsensor known as the “Biostamp.” When applied to the user’s temple, the Biostamp enables real-time tracking of brainwaves and transmits them as data signals.

Shape Memory Alloy Wires Power Prosthetic Arms
Engineers at Saarland University have developed an artificial arm made from shape-memory materials, capable of effortlessly picking up a single leaf. This technology promises significant advancements for the manufacturing industry of flexible, lightweight robotic arms and the production of novel prosthetics. The muscle fibers of this artificial arm are composed of ultra-fine nickel-titanium alloy wires, enabling contraction and flexion.

Capital