Weekly Highlights of Internet Healthcare: HealthyWay Weekly Digest (20150504)

Events & Perspectives

Weekly Report Reminder: The May Day holiday has ended. It’s time for all workers to return to their posts and strive for excellence! Let’s take a look back at last week’s “passion and speed” in the internet healthcare sector.

First, the tech giantsApple，Connected to HealthKit and the medical records of Cedars-Sinai Medical Center in Los Angeles. Patients can sync their personal health data with hospital electronic medical records via the HealthKit app, enabling direct online communication with physicians, who will use the data collected by HealthKit as a reference for clinical decision-making and medication management.

Recently,Signed cooperation agreements with International Business Machines Corporation (IBM) and Japan Post, leveraging Apple’s mobile smart devices and IBM’s application and data analytics technologies toPersonal Positioning and Monitoring for the Elderly, to strengthen and expand its existing lifestyle services for the elderly. For Apple, this move aims, on one hand, to capture the hearts of the “silver-haired” internet users, and on the other, to indirectly revitalize the sluggish iPad market.

Let’s take another look at the healthcare initiatives of BAT.

Last week,BaiduMaking frequent moves in the mobile health sector. Following the strategic partnership with Beijing 301 Hospital, within a single day it againSigned phased strategic cooperation agreements with three top-tier hospitals: Huashan Hospital of Fudan University in Shanghai, Shanghai First Maternity and Infant Health Hospital, and China-Japan Friendship Hospital in Beijing.Baidu Health will assist hospitals in establishing comprehensive platforms for patient data acquisition and medical big data analytics. Leveraging the vast volume and precise computational capabilities of Baidu’s big data, this initiative supports clinical medical research, aggregates high-quality medical resources, and substantially enhances the medical expertise and services provided by hospitals and physicians. Furthermore, Baidu Doctor has disclosed a partnership with Stanford Hospital, enabling users to access global healthcare services.

TencentIt also finalized two major strategic partnerships last week.

First,With Bank of BeijingSigned a strategic cooperation agreement. Under the agreement, Bank of Beijing will provide Tencent with an indicative credit facility of RMB 10 billion, andBusiness cooperation will be carried out in areas such as the Jingyitong project, third-party payment, group cash management, and retail finance.Among these initiatives, the Jingyitong project—a real-name IC medical card with an e-wallet function, jointly launched by the Beijing Municipal Health and Family Planning Commission, the Beijing Hospitals Administration, and Bank of Beijing—served as the focal point of this collaboration. During the partnership, Jingyitong launched a WeChat Official Account, marking its first integration with a third-party payment platform. Patients can now use WeChat on their mobile devices to pay for registration, laboratory tests, medications, and other fees, enabling them to complete payments, receive treatment reminders, and access navigation guidance within healthcare facilities without leaving home.

Next isWith BiolightPursuant to the agreement between both parties, Baolite will be responsible for the research and development, production, and operation of the cloud platform for smart wearable health and medical products. Tencent will provide technical support on its IoT platform for Baolite’s smart wearable health and medical products, enabling access to the IoT platform with a unique corresponding platform account (including but not limited to QQ accounts), thereby facilitating big data mining and development. Users of the company’s smart products can leverage the IoT platform to achieve data connectivity, statistical interaction, and other IoT functionalities.

Furthermore, Baolite and Tencent will leverage their respective market and marketing resources to jointly drive business development, including but not limited to promotions on their respective e-commerce platforms, media releases, and the launch and promotion of joint marketing campaigns. Notably, the two parties will also jointly introduce “Internet + Healthcare” related products at appropriate times, despite the National Health and Family Planning Commission’s recent announcement regarding the standardization of internet-based medical services.

Likewise, it has not been able to stop the march into internet healthcare.Kangmei Pharmaceutical, announced in a public notice last week that it wouldInvesting RMB 1 Billion in Internet Healthcare ProjectsAccording to the announcement, Kangmei Pharmaceutical has signed a Strategic Cooperation Framework Agreement on the Medical and Health Services Industry with the People's Government of Yulin City, Guangxi Zhuang Autonomous Region. The two parties have reached an agreement on in-depth cooperation regarding Kangmei Pharmaceutical’s strategic investment in Yulin’s medical and health industry. The investment projects include a hospital project with a total investment of no less than RMB 800 million and an internet-based medical and health service platform project with a total investment of no less than RMB 200 million.

While everyone was busy with online project development,Spring Rain DoctorExpanded its business to offline channels. Recently, at the 2015 Mobile Internet Conference, Zhang Rui, CEO of Chunyu Doctor, revealed plansOpened 25 offline clinics nationwide on May 7.According to VCBeat, these 25 outlets are named Chunyu Clinics. Chunyu Doctor stated that this initiative aims to better serve users by addressing the 30% of health issues that are difficult to resolve online through offline clinics, while solving the remaining 70% of user queries via its online app.

Note: A seed fund dedicated to internet healthcare Rock HealthRecentlyAnnouncing Three New Investments: psychiatric hospital Cheng Medical Services, 1DocWay, data analytics company Arsenal Health, and wearable device company Caeden.

Healthcare Reform

Establish a population health informatization system by 2020:At the recently held “7th West Lake Forum on Health Services,” relevant officials from the Department of Planning and Information of the National Health and Family Planning Commission (NHFPC) interpreted the key elements of the overall framework for China’s population health informatization. Initiatives such as “launching pilot demonstrations for medical broadband, the Medical Internet of Things (IoMT), and ‘Internet+’ health and medical services,” as well as “exploring internet-based health and medical services,” were all included in the framework. By 2020, the NHFPC aims to establish a systematic framework for China’s population health informatization, encompassing: a nationally interconnected population health information service system that achieves comprehensive coverage through a single health network, universal application of a resident health card, and unified integration of health information resources; a nationwide health and medical information service mechanism featuring full population coverage, lifelong care, equal emphasis on Traditional Chinese Medicine (TCM) and Western medicine, and round-the-clock operation; and a legal and regulatory framework for the analysis and application of big data in health and medicine, supporting business integration, cross-departmental collaboration, social services, and evidence-based decision-making. Furthermore, policies and regulations governing health information consumption will be formulated to develop personalized medical services, innovate smart healthcare business models and operational mechanisms, and achieve an integrated approach to prevention, treatment, rehabilitation, and health management.

Investment in the Elderly Care Service Industry to Receive Support from Development Finance:The Ministry of Civil Affairs and the China Development Bank jointly issued the “Implementation Opinions on Leveraging Development Finance to Support the Construction of a Social Elderly Care Service System,” aiming to harness the catalytic role of development finance in attracting private capital into the construction of the social elderly care service system.

Shenzhen's Reform of the Recurrent Subsidy Model for Public Medical Institutions:The Shenzhen Municipal Finance Commission, in conjunction with the Shenzhen Municipal Health and Family Planning Commission and the Shenzhen Hospital Administration Center, issued the "Detailed Implementation Rules for Subsidies on Basic Medical Services Provided by Public Medical Institutions under the Jurisdiction of Shenzhen Municipality (Interim)." The rules specify that, starting from 2014, fiscal subsidies will be provided to municipal public medical institutions for outpatient and inpatient diagnostic and treatment services rendered within the government-guided price standards. These subsidies will be determined based on factors such as service volume, quality, and patient satisfaction, adopting a model of "funding based on specific tasks" and "purchasing services." The new subsidy mechanism primarily embodies the following characteristics: First, strengthening guidance and transforming mechanisms. Second, implementing categorized subsidies to support specialized disciplines. Third, optimizing structures and promoting tiered diagnosis and treatment.

VCBeat Exclusive

Global Pharmaceutical Giants: They Are Aggressively Entering the Internet Healthcare Accelerator Space

How to Make Mental Health Mobile?

Trend Analysis: Can 3D Printing Revolutionize Traditional Healthcare?

More IPOs and M&As Drive Significant Growth in Healthcare VC Exits

30 Most Notable Healthcare Startups to Watch in 2015: Abiogenix—Developing the uBox Smart Pillbox to Remind Patients to Take Medication on Time

Health Apps Raised $220 Million in Q1 2015

What Are the Differences in Focus Between Apple’s ResearchKit and Google’s Baseline Study?

Five Key Reasons Why Pharmaceutical Companies Should Leverage Mobile Apps

Hot Terms in Internet Healthcare:Targeted therapies/Coordinated Care

Data

By the end of 2016, the number of smartwatch users in the United States was nearly on par with that of fitness tracker users:According to forecasts by the U.S. market research firm NPD Group, smartwatch users will account for 9% of the U.S. adult population (aged 18 and older) by the fourth quarter of 2016, nearly on par with fitness tracker users. By the end of 2016, the number of fitness tracker users is projected to reach a peak of 32 million.

Q1 2015: Health Apps Raise $220 Million in Funding:According to the latest report from Mercom Capital, in the first quarter of 2015, apps that help manage chronic diseases and other conditions accounted for $220 million across 35 deals.

Over 30% of U.S. infants are exposed to mobile devices from birth:According to a research report presented at the annual meeting of pediatricians held in San Diego, one-third of infants in the United States are exposed to mobile devices such as smartphones and tablets from birth. Among one-year-olds, one in seven spends at least one hour per day on these devices. The survey revealed that 15% of children under the age of one have used apps, and 24% have made calls on smartphones. The proportion of children who begin using apps peaks at age two, reaching 36%. Meanwhile, 36% of children start playing video games at age two. The study also found that 14% of one-year-olds use mobile devices for at least one hour daily; this proportion rises to 26% for two-year-olds and 38% for four-year-olds. Only 30% of surveyed parents reported having discussed their children’s screen time and use of other media with their pediatricians.

The Global Rheumatoid Arthritis Treatment Market Will Reach $19.3 Billion in 2023:GlobalData, a renowned global market research firm, released a research report stating that the global rheumatoid arthritis (RA) treatment market will grow steadily at a compound annual growth rate (CAGR) of 2.1% over the next decade (2013–2023), reaching $19.3 billion by 2023, up from $15.6 billion in 2013. Among the top 10 pharmaceutical markets worldwide, the United States is the largest RA treatment market, accounting for as high as 67% of the global market share in 2013. By the end of 2023, although the U.S. market share will decline slightly to 65%, the country will maintain its leading position in the global RA treatment market.

The Asian medical device market is expected to accelerate its expansion:According to a forecast report released by market research firm Research and Markets, which analyzed business trends among the top 100 medical device companies in Asia, the medical device market in the Asia-Pacific region (excluding Japan) is poised for substantial growth in the coming years, with the biomedical device segment expected to expand by more than 10%. The forecast indicates that the Asian medical device market will reach $15 billion in 2017.

New Technologies

Portable Electronic Urine Collector Debuts
Chengdu Xin’ao Guan Medical Device Co., Ltd. has developed a new intelligent electronic urine collector (fully named Portable Electronic Urine Collector). This product is only palm-sized, portable, and can automatically collect urine at any time.

US Company Develops HemoLink, a Novel Needle-Free Blood Glucose Monitor
U.S.-based Tasso has developed a blood-sampling device about the size of a ping-pong ball, called HemoLink. Patients can operate the device at home by simply placing it on the skin of the upper arm or lower abdomen. Within two minutes, HemoLink automatically completes the blood collection.

CDC Develops Small Wearable Vaccine Patch to Combat Measles
The U.S. Centers for Disease Control and Prevention (CDC) and the Georgia Institute of Technology are collaborating to develop a small, wearable microneedle patch that could have a profound impact on existing vaccination practices. This patch eliminates the public health risks associated with traditional subcutaneous needle injections.

Capital

Xiong Weiming of Huachuang Capital: The E-commerce Transformation of Medical Services Is a Major Opportunity for the Internet Healthcare IndustryThe separation of pharmaceuticals from medical services will drive the marketization of many healthcare services. If these services become marketized, they can also be digitized for e-commerce, leveraging new channels to compel traditional services to go online, thereby making many previously inaccessible or inconvenient medical consumables readily available.