HealthyWay Inc. Submits IPO Prospectus Amid Surge in China's Digital Healthcare Sector

Events & Perspectives
Last week, the internet healthcare sector was abuzz with significant developments—whether headline-grabbing announcements or low-key yet impactful news.

The headline reads “The Putian Medical Group Challenges Baidu“The public feud” has dominated discussions in healthcare professionals’ social media circles. The China Health Association (Putian) has requested its member units to cease paid online promotional activities, reigniting scrutiny of Baidu’s controversial “medical advertising.” Just days prior, Baidu officially launched its “Morning Light Initiative” for its “Ask a Doctor” service, integrating 25 top-tier (Grade III Class A) hospitals—including Peking University First Hospital, Shanghai Tongji Hospital, and Peking University Cancer Hospital—to build the most authoritative online medical Q&A community. Additionally, a strategic partnership with Juyi160 has taken initial shape, with both parties agreeing to jointly promote the installation of free in-hospital Wi-Fi and indoor navigation systems at hospitals within their covered service areas. While the outcome of this high-profile dispute remains undecided, certain repercussions have already materialized. Since the 24th, Baidu’s stock price has fallen for three consecutive days, dropping over 5% to $205.44; however, as of press time, the share price has shown signs of recovery.

Compared to the collective boycott by the “Putian clique,” another story missed its chance to make headlines.Xinhua Pharmaceutical Quietly Launches Its Proprietary E-Commerce Platform, and provide online pharmacist consultations. VCBeat has found that there are currently two pharmacists available for consultation services, and in the Zibo urban area, they also offer home delivery within 24 hours.

Two other pieces of explosive positive news are: 1.A National-Level Medical Informatics Platform with Unified Standards and Interfaces Is Under Feasibility Study and Preparation, thereby enabling the interoperability and interconnectivity of medical data across regions on the platform, achieving integration with medical insurance systems, and controlling unreasonable pharmaceutical costs. 2.The Ministry of Science and Technology Convened the First National Expert Conference on Precision Medicine Strategy, establishing that China's Precision Medicine Initiative, with a total investment of 60 billion yuan, will be launched in the second half of 2015 or the following year; among this, the central government will provide 20 billion yuan, while enterprises and local governments will contribute a matching 40 billion yuan.

Finally, the health checkup industry’s key opinion leader that failed to achieve its goal of listing on the main boardMeinian Onehealth Healthcare Chose the Path of a Backdoor Listing, acquired Ciming Health Checkup in stages.

And Another Major Player in the Health Checkup IndustryiKang Group Released the Personalized “iKang Health Checkup Treasure” App Last Friday, tailoring exclusive health checkup plans for individual and corporate clients. Compared to the "Ciming Health Checkup Hospital Health Bao" app, "Tijianbao" recommends personalized screening items for lung cancer, breast cancer, and diabetes.

Attachment:Samsung Enters the Mobile Health and Medical Sector
Last week, at the Boao Forum for Asia, Samsung announced that it would accelerate the advent of the “digital health” era by collaborating with the IT industry and healthcare institutions to build its own health management system using IT tools. In the future, Samsung will also strengthen cooperation with insurance companies, pharmaceutical manufacturers, and hospitals to identify optimal solutions for reducing medical costs in the face of an aging society.

Healthcare Reform

"Measures for the Planning and Management of the National Health and Family Planning Commission (Trial)" Released:The Measures require that health and family planning development plans be aligned with national economic and social development plans, and generally be formulated every five years. Specialized plans should, in principle, be synchronized with health and family planning development plans; their timelines may also be determined based on actual needs, but shall generally not be less than three years. The development plans shall be led by the planning management department of the National Health and Family Planning Commission, while specialized plans shall be led by the corresponding operational departments of the Commission.

Implementation Opinions on Further Strengthening the Development of the Rural Doctor Workforce Released:The General Office of the State Council recently issued the “Implementation Opinions on Further Strengthening the Development of the Rural Doctor Workforce.” The Opinions require that, in line with economic and social development, subsidy standards for rural doctors from various channels be adjusted dynamically to gradually improve their compensation and benefits. Meanwhile, localities shall establish exit mechanisms for rural doctors based on local conditions.

Guangzhou: Starting Next Month, Reimbursement Will Be Denied If Only Large Hospitals Are Selected as Designated ProvidersEffective April 1, 2015, employed personnel applying for designated medical institution registration must first designate a community hospital before they can utilize the pooled medical insurance fund at Grade A tertiary hospitals. Otherwise, if only a Grade A tertiary hospital is designated without a community hospital, the individual will not be eligible for pooled medical insurance benefits. Insured persons must select a community hospital before they can complete the designation procedures for secondary and tertiary hospitals.

Promote cross-departmental business collaboration and the lawful, secure opening of big data:At its plenary meeting, the Leading Group for Cybersecurity and Informatization of the National Health and Family Planning Commission proposed that this year’s priorities would center on implementing the overall framework for population health informatization. Guided by needs and applications, supported by cutting-edge technologies, and underpinned by standards and security measures, China will accelerate the development of a population health information service system that provides universal coverage, spans the entire life course, and places equal emphasis on traditional Chinese medicine and Western medicine.

General Practice Services at Community Hospitals: Medical Insurance Reimbursement AvailableThe Hefei Municipal People’s Government issued the “Hefei City Pilot Program for Deepening Comprehensive Reform of the Medical and Health System,” which deploys reforms in multiple areas, including comprehensive reform of public hospitals, tiered diagnosis and treatment, and privately run medical institutions.

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Data

The Global Type 1 Diabetes Market Will Reach $13.6 Billion in 2023:According to GlobalData analysis, the global type 1 diabetes drug market reached $13.6 billion in 2023, up from just $6.6 billion in 2013, representing a compound annual growth rate (CAGR) of 7.6%.

The Connected Health/Fitness Device Services Market Is Expected to Reach $1.8 Billion in 2019:According to a report, the revenue of the health/fitness device connectivity services market was estimated at $320 million in 2015 and is projected to be six times that amount by 2019. Based on this, Juniper Networks Research forecasts that the market will reach $1.8 billion by 2019.

Global sales of digital devices are projected to reach 2.5 billion units in 2015:Gartner predicts that global combined sales of PCs, tablets, ultra-portable devices, and mobile phones will reach 2.5 billion units this year, a 2.8% increase from last year. Global mobile phone sales are expected to rise to 1.94 billion units this year, up 3.5% year-on-year, while global PC sales will decline due to price increases caused by exchange rate fluctuations.

Global Fitness Tracker Device Output Value Expected to Reach $5.4 Billion by 2019:According to a report by research firm Parks Associates, the global market value of smartphones connected to fitness tracking devices will increase from $2 billion in 2014 to $5.4 billion in 2019.

The Mobile Health Market Could Reach RMB 4.5 Billion in 2015:Sootoo Research Institute predicts that the development pace of the mobile medical health market will significantly accelerate in the coming years. The market size is projected to reach RMB 4.5 billion in 2015, grow substantially to RMB 8 billion in 2016, and further expand to RMB 13 billion in 2017.

Overseas

UK's NHS Launches Mental Health Services App:The UK’s National Health Service (NHS) has recently launched its first digital mental health service app, which features online tools and resources and has been proven to effectively promote mental well-being.

New Technologies

Capsule Capable of Detecting Intestinal Gas and Transmitting Data to Mobile Phones
Led by Kourosh Kalantar-zadeh, chief scientist at RMIT, a team has developed an ingestible capsule. The device houses gas sensors, a microprocessor, a battery, and a wireless high-frequency transmitter. After being swallowed by the patient, the capsule detects the concentrations of specific gases as it traverses the gastrointestinal tract and transmits the readings to devices such as smartphones. Ultimately, the capsule is excreted from the body.

Smart "Medicated Adhesive Plaster" with Built-in Sensors Facilitates Ebola Diagnosis
Johns Hopkins Laboratory has designed a novel biomedical suit and a wearable sensor called MultiSense Memory. The biomedical suit can be donned in just two minutes, features an integrated cooling system, and includes an anti-fog face mask. The MultiSense Memory sensor captures basic physiological data from patients, including heart rate, temperature, and oxygen saturation. More importantly, it enables physicians to monitor patients’ real-time data.

Australia Develops 3D-Printed Rehabilitation Devices with Embedded Sensors
A team of researchers at Curtin University in Australia has developed a 3D-printed rehabilitation device embedded with sensors using standard desktop 3D printers, which can help patients with joint injuries and mobility impairments recover more quickly.

Mayo Clinic and Gentag Partner to Develop Wireless Sensors for Treating Obesity and Diabetes
Mayo Clinic and Gentag Have Reached an Agreement on the Development of Wireless Wearable Biosensors, Utilizing Near-Field Communication (NFC) Technology to Help Combat Obesity and Diabetes. The System Will Assist Researchers in Monitoring Physical Activity and Treating Obesity and Related Conditions.

Capital