HealthyWay Files for IPO Amid Expansion of Digital Healthcare Services

Events & Perspectives

Recently, the medical sector has been dominating headlines, thanks toBaidu and the Putian System's“The Great Battle.” More than half a month has passed since the “confrontation” began on March 25.“The War” Has Finally Subsided. From collective boycotts to malicious threats and finally ceasing confrontation, the series of actions by the Putian network appears to have had no impact whatsoever on Baidu’s strategic layout in the healthcare sector.

According to VCBeat, Baidu isTo Launch in AprilSimilar to Apple HealthKitHealth Management Platform “Baidu Health Assistant”. Meanwhile, the widely circulated earlier reports that Baidu would launch its “Yao Zhida” (Medicine Direct) product in Hangzhou on the 12th proved unfounded, as the company took no action on that day. Regardless of how it adjusts its pace, it is evident that Baidu positions itself as a platform integrator.

Another hotline message is,“The DXY-affiliated” clinic began recruiting medical staff last week.. It also announced that the clinic has entered the specific implementation phase of pre-opening preparations, and more large chain operators will accelerate their schedules. According to the announcement, there are still several months before the first clinic goes live; if media reports are accurate, it will launch in Hangzhou first.

Another topic that received significant media attention in the healthcare sector last week wasWanda, following the proposed fundraising of RMB 3.5 billion to invest in four “cloud projects” for internet healthcare, it is now splurging again.Partnering with a century-old UK hospital serving the Royal Family, investing RMB 10 billion to build a comprehensive medical service complex in Chengdu, anchored by a world-class international hospital as its core project.. Why choose Chengdu? Mr. Wang said, “It’s simply for enjoyable leisure. Investing here is as good as investing anywhere else.” How capricious!

Alright, let’s stop the wild speculation and get back to reality. Here are two acquisition updates: (1) Last week,iKang Healthcare Group Acquires 70% Stake in WA Zhenjing Medical, a Provider of High-End Medical Services, strengthen cooperation in personalized in-depth health checkups and high-end anti-aging. (II)Bristol Myers Squibb Announces $1.25 Billion Acquisition of U.S. Private Biotechnology Company。

Healthcare Reform

Heilongjiang Comprehensively Builds Mobile Hospitals, Upgrading the Appointment and Diagnosis Platform:The Health and Family Planning Commission of Heilongjiang Province and the Administration of Traditional Chinese Medicine jointly issued a notice stating that, starting from 2015, the province will comprehensively build a “Mobile Hospital” (a full-process service platform covering pre-consultation, during-consultation, and post-consultation phases) on the basis of its existing appointment-based diagnosis and treatment service platform, to further address the “three long waits and one short consultation” problem—namely, long waiting times for registration, long waiting times for consultation, long waiting times for payment, and short consultation times.

Hubei Province Further Decentralizes Approval Authority for the Establishment of Medical Institutions:The “Measures for the Administration of Establishment, Practice Registration, and Licensing of Medical Institutions in Hubei Province,” revised by the Hubei Provincial Health and Family Planning Commission, have recently come into force. These Measures provide clear provisions on the approval of establishment, practice registration, modification registration, verification and cancellation, as well as supervision and administration of medical institutions across the province, and further decentralize the authority for approving the establishment of medical institutions.

National Health and Family Planning Commission Leads Special Campaign to Crack Down on Illegal Activities Such as Surrogacy:Twelve departments, including the National Health and Family Planning Commission, the Publicity Department of the CPC Central Committee, and the Office of the Central Leading Group for Comprehensive Management of Social Security, jointly convened a national teleconference in Beijing to launch a special campaign against surrogacy. The meeting mandated investigations and penalties against medical institutions, healthcare professionals, and social intermediary agencies engaged in surrogacy activities; it also required the cleanup and punishment of internet platforms, television and radio broadcasts, newspapers, and magazines that promote or provide surrogacy services. Furthermore, oversight was strengthened over the application of human assisted reproductive technology services, as well as the circulation and sales of related medical devices and pharmaceuticals. The special campaign, scheduled from April through the end of December this year, is divided into three phases: intensive rectification, special supervision and inspection, and summary and consolidation.

Striving for Every Household to Have a Private Doctor by 2020:In early April, the National Health and Family Planning Commission convened a national conference on rural primary healthcare in Wuhan, Hubei Province. Li Bin, Director of the National Health and Family Planning Commission, proposed strengthening the workforce of village doctors and striving to ensure that by 2020, every household has a qualified family doctor, every resident has an electronic health record and a smart health card, thereby achieving universal access to basic medical and health services.

Hu Province will gradually expand the scope of designated hospitals for cross-regional medical expense networked settlement:The Hunan Provincial Department of Human Resources and Social Security has issued a directive requiring medical insurance agencies at all levels to gradually expand the network of designated hospitals for cross-regional medical care with direct settlement services, striving to achieve the year-end target of having 3–4 such hospitals at the municipal/prefectural level and 1–2 at the county/district level.

Public Hospitals’ Revenue and Expenditure to Be Included in Budget Management; Direct Linking of Medical Staff Income to Departmental Revenue Is Prohibited:The National Health and Family Planning Commission issued the "Interim Provisions on the Budget and Final Accounts Reporting System for Public Hospitals." The Interim Provisions stipulate that hospitals shall implement comprehensive budget management, scientifically forecast hospital revenues, and shall not decompose hospital revenue targets to individual departments. Furthermore, it is strictly prohibited to directly link the income of medical personnel with the revenue of their respective departments.

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Data
The global clinical chemistry analyzer market will reach $48.84 billion in 2019:Markets and Markets, a U.S.-based market research and consulting firm, has recently released a market report. The report indicates that the global market size for life science and chemical instruments is projected to reach $48.84 billion in 2019, with a compound annual growth rate (CAGR) of 6.9% from 2014 to 2019.

Antibiotic Misuse in China to Cause Millions of Deaths by 2050:Jim O’Neill, former Chairman of Goldman Sachs Asset Management and economist, stated that by 2050, China will see 1 million deaths annually from antibiotic-resistant “superbugs,” with economic losses reaching as high as $20 trillion.

The global market for HER2-negative breast cancer treatment will reach $6.1 billion in 2023:GlobalData has released a new research report on HER2-negative breast cancer. The report indicates that the global market for HER2-negative breast cancer treatments will experience rapid growth at a compound annual growth rate (CAGR) of 15.5% over the next decade, reaching $6.12 billion by 2023, up from $1.45 billion in 2013. This growth will primarily occur across eight major markets, including the United States, Japan, China, and the five major European Union countries (the United Kingdom, France, Germany, Spain, and Italy).

The global colorectal cancer (CRC) treatment market will reach $9.4 billion in 2020:According to the latest research report released by GBI Research, a globally renowned market research firm, the global colorectal cancer (CRC) treatment market is expected to maintain modest and stable growth from 2014 to 2020, reaching $9.4 billion by 2020, with a compound annual growth rate (CAGR) of 1.8% during the forecast period. The report indicates that this growth will primarily occur in eight major developed countries, including the United States, Japan, Canada, and the five major European Union countries (the United Kingdom, France, Germany, Spain, and Italy).

Younger Age and Higher Income Correlate with Greater Willingness to Invest in Health:The “2014 Survey Report on Medical Care and Health Status of Shanghai Residents,” jointly released by the Social Survey Center of the Shanghai Academy of Social Sciences and the Institute of Sociology of the Shanghai Academy of Social Sciences, shows that 80% of residents report good health status, and 90% approve of the city’s medical services. The data also indicate that residents with higher incomes are more inclined to seek care at large hospitals.

Per Capita Healthcare Expenditure Growth Far Outpaces GDP:A report released by Fudan University shows that from 1991 to 2013, the average annual growth rate of per capita medical expenses in China was 17.49%. If the current policy environment remains unchanged, the annual growth rate of per capita medical expenses in China is projected to be between 14.33% and 18.24% in 2015, significantly higher than the nominal growth rate of China’s per capita GDP in 2013, which stood at 8.97%. If the current policy environment remains unchanged, it is estimated that by 2020, China’s medical expenses will continue to maintain an average annual growth rate of 12.08%–18.16%, a pace significantly exceeding that of socioeconomic development and exacerbating existing social problems.

The ovarian cancer (OC) treatment market in the Asia-Pacific region is expected to maintain steady growth over the next six years:According to a research report released by the globally renowned market research firm GBI Research, the ovarian cancer (OC) treatment market in the Asia-Pacific (APAC) region is projected to grow steadily at a compound annual growth rate (CAGR) of 5.1% over the next six years (2014–2020), reaching USD 417.6 million by 2020. The market was valued at USD 294.3 million in 2013.

30% of Healthcare Workers Dissatisfied with Communication Technology:According to the latest data released by the U.S.-based Harris Poll, approximately 30% of 955 healthcare professionals expressed dissatisfaction with the secure communication technologies they use. Among those dissatisfied, 68% attributed their discontent to different teams within their organizations using disparate technologies, while 55% cited that not all team members have access to the same technology.

China accounts for 20% of global mobile internet advertising expenditure:According to eMarketer’s latest forecasts, China’s mobile internet advertising expenditure will continue to see robust growth this year. Spending on mobile display and search ads will reach $13.98 billion, nearly double the $7.38 billion recorded in 2014, accounting for 45% of the country’s total digital ad spending. Including SMS advertising, China’s total mobile ad expenditure will hit $14.77 billion, representing an 80% year-on-year increase. eMarketer predicts that if all ad formats are included, mobile advertising will account for 20.7% of total media ad spending in China in 2015, with its share rising to 45.4% by 2019. In 2016, China’s mobile ad spending is projected to surpass television ad spending for the first time.

Global PC Shipments in Q1 2015: 71.1 Million Units, a 5.2% Year-on-Year Decline:Market research firm Gartner’s newly released report indicates that global personal computer shipments fell by 5.2% in the first quarter, dropping to 71.1 million units.

2014 Global 3D Printing Market: Total Sales Reached $3.3 Billion, a 34% Increase:Renowned market research firm Canalys released its 2014 Global 3D Printing Market Research Report. The report stated that approximately 133,000 3D printers were shipped worldwide in 2014, representing a significant 68% increase compared to 2013. However, the shipment volume of 3D printers was not the only rising figure; the total global sales revenue for 3D printers, materials, and services surged to $3.3 billion in 2014, marking a 34% growth over 2013.

Overseas

Starting in 2018, the United States will enforce mandatory certification standards for electronic health records.
The Centers for Medicare & Medicaid Services (CMS) announced the release of the long-awaited Stage 3 Meaningful Use guidelines for electronic health records (EHRs). On the same day, the Office of the National Coordinator for Health Information Technology (ONC) issued the 2015 Edition EHR certification criteria. Under these criteria, hospitals had the option to comply prior to 2017, but compliance became mandatory for all hospitals starting in 2018. The ONC stated that it is ready to accept public comments on both documents. The new guidelines include several changes related to patient provisions. For instance, one provision allows the use of application programming interfaces (APIs) for patient portals, enabling patients and their designated representatives to securely transmit and access their data.

New Technologies

Separating Cancer Cells from Blood Using Sound: Low-Cost Disposable Chips
A team of engineers has developed a low-cost method using disposable chips to isolate cancer cells from circulating blood via acoustic separation. This advancement could enable physicians to more easily diagnose cancer, predict disease progression, and treat cancer patients in the future.

Oregon State University Develops Optical Nanosensors Capable of Identifying Spoiled Food
Researchers at Oregon State University have developed an optical nanosensor that is highly sensitive to odor molecules. The sensor incorporates a metal-organic thin film that captures odor molecules, and then amplifies the captured chemical signals using low-cost plasmonic nanocrystals. It can not only detect carbon dioxide, one of the most common gases in the environment, but also exhibits high sensitivity to many other chemical substances, significantly reducing the cost and time required for substance detection.

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