Health Road Files IPO Prospectus, Highlighted in VB Internet Healthcare Weekly Report 20150309

Events & Perspectives

For the internet healthcare community this week, the biggest highlight is undoubtedlyHealthcare-related content in the Government Work Report delivered by Premier Li Keqiang at the Two SessionsVCBeat has summarized the following five key points: 1. Improve the basic medical insurance for urban and rural residents, raising the fiscal subsidy standard from 320 yuan to 380 yuan per person per year; basically achieve direct settlement of residents' medical expenses within provinces, and steadily promote the cross-provincial direct settlement of medical expenses for retirees. 2. Abolish government pricing for the vast majority of pharmaceuticals and delegate the pricing authority for a batch of basic public service fees. 3. Expand the pilot program for critical illness insurance for urban and rural residents to all provinces, with universal health insurance coverage exceeding 95%. 4. Increase the per capita subsidy standard for basic public health services from 35 yuan to 40 yuan, with the entire increment used to pay for basic public health services provided by village doctors, facilitating hundreds of millions of farmers in accessing medical care locally and nearby. 5. Encourage physicians to practice at multiple sites, particularly at the grassroots level, and promote the development of privately run medical institutions.A Review of Healthcare Reform in the Past Five Years）

At the Two Sessions, the participation of commercial health insurance in healthcare reform has also drawn significant attention. Both Cigna & CMB and the insurance industry believe that as market mechanisms are introduced into healthcare reform and commercial insurance becomes involved in basic medical insurance, leveraging favorable policies under the new normal, the commercial insurance sector—particularly the health insurance industry—will usher in its best period for development opportunities.

Meanwhile, the healthcare reform proposals put forward by leading internet entrepreneurs became a focal point of the conference.Baidu’s Robin Li Suggests Fully Opening Hospital Appointment Slots, and Proposes Establishing the “China Brain” Initiative, driving the leapfrog development of artificial intelligence. On the surface, these two proposals appear to be unrelated; however, a closer examination of Baidu’s trajectory over the past two years—from its “Cloud Strategy” in 2012, to “Light Apps” in 2013, and “Direct Connect” in 2014, culminating in the newly announced strategy of “Baidu Connecting People with Services”—reveals its ambition to leverage technology to drive innovative connectivity for people.

Although Governor Ma of BAT is neither a deputy to the National People's Congress nor a member of the Chinese People's Political Consultative Conference, he is still contributing to the nation. His strategic investments in the healthcare sector have been ongoing. Recently, Ali Health launched version 2.0 of its app, which adds features such as drug safety verification, online consultations with renowned physicians, appointment registration and additional slot booking, and electronic prescriptions, among others."Ask a Doctor" Platform, Jointly Created by Alibaba Health and Sina's "Love to Ask Doctors", patients can describe their condition to doctors directly in text and image format from home, receiving further medical guidance.

Meanwhile, Chunyu Doctor is also laying out its home healthcare services; unlike Alibaba, which offers consultations in text and image formats,Chunyu logs in on smart TVs., users can watch health programs produced by Chunyu on smart TVs via the Chunyu Family Doctor service, inquire about health issues, make telephone consultations, and search for nearby pharmacies and hospitals with a single click. According to VCBeat, the company is also accelerating the development of its video consultation feature, which is expected to launch this spring. At that time, users will be able to conduct video calls with professional doctors through their home smart TVs to discuss health-related concerns. Furthermore, last week’s partnership with Haier Smart Air Circle not only significantly expanded Chunyu’s medical resources but also helped promote the platform-based development of Haier.

In addition to the medical layout for home-based scenarios mentioned above,Dr. AlmondReconfigured the layout to extend communication time. Launched last week“Patient Education Center” ModuleBy cleverly leveraging the convenience of mobile internet, the time for doctor-patient consultations is "indirectly extended." Doctors can send pre-consultation instructions and preoperative reminders to patients in advance. After the consultation or treatment, postoperative instructions and rehabilitation precautions are sent directly to patients' mobile phones with a single click. This approach not only improves doctors' work efficiency but also allows patients to experience more attentive medical services.

Regarding new products,“Yunban Maternal and Infant” Health Management Platform Piloted at Shenzhen Maternity & Child Healthcare Hospital, officially launched to the public. Pregnant women can obtain free gestational age charts at hospital outpatient triage desks. After scanning the QR code to download the “Yunban Maternal and Infant” app, they can consult provincial and municipal maternal and child health experts online for free, accessing professional advice, prenatal care information, and more.

Overseas, the World’s Leading Cloud Solution Provider for Life Sciences Clinical ResearchMedidata Announces Strategic Partnership with Garmin International Inc., a Subsidiary of Garmin Ltd., by integrating Garmin’s vívofit fitness tracker with the Medidata Clinical Cloud, enables Medidata’s life sciences customers to leverage mobile health (mHealth) devices to enhance patient engagement, data quality, and operational efficiency in clinical trials.

Attached:Kangmei Pharmaceutical Approved as a Pilot Unit for the National Administration of Traditional Chinese Medicine’s Informatization Medical Service PlatformThe platform has successfully completed its pilot validation for hospital deployment, establishing an end-to-end digital healthcare service model that covers appointment scheduling, smart waiting, point-of-care payment, access to test results, insurance settlement, follow-up visits, and health consultations. This proven model is ready for replication across other hospitals and meets the foundational requirements for full-scale operational rollout.

Healthcare Reform

Interpretation of the National Health and Family Planning Commission’s Guidance on Immediate Reimbursement for Cross-Provincial Medical Treatment:The National Health and Family Planning Commission and the Ministry of Finance jointly issued the “Guiding Opinions on Doing a Good Job in the Verification and Reimbursement of Medical Expenses for Cross-Province Medical Treatment under the New Rural Cooperative Medical Scheme” (hereinafter referred to as the “Guiding Opinions”). The “Opinions” pointed out that the pilot scope for cross-province medical expense reimbursement should be expanded year by year from 2015 to 2020, and direct reimbursement for cross-province medical treatment should be implemented in designated medical institutions with the necessary conditions by 2020.

Draft Implementation Plan for Digital Diagnosis and Treatment Open for Public Comment:The Ministry of Science and Technology’s website has released the Implementation Plan for the Key Special Project on Research and Development of Digital Diagnostic and Therapeutic Equipment (Draft for Comments). The plan proposes to focus on ten major strategic products—multimodal molecular imaging, new magnetic resonance imaging (MRI) systems, new computed tomography (CT) imaging, low-dose X-ray imaging, next-generation ultrasound imaging, hybrid endoscopes, new microscopic imaging technologies, large-scale radiotherapy equipment, surgical robots, and active implantable medical devices—to promote the “digitalization, networking, and intelligentization” of the medical device industry.

The air pollution prevention and control industry has broad prospects for development:The Ministry of Science and Technology, in conjunction with relevant departments, has launched pilot work for the key special project on “Air Pollution Prevention and Control” under the National Key R&D Program. The draft for public comment proposes to coordinate research on air quality monitoring, forecasting, and early warning; improve air quality monitoring technologies and quality control standards; and establish a unified platform for scientific and technological information release. It also calls for strengthened research on the formation mechanisms and dispersion patterns of secondary fine particulate matter in haze in key regions, factors influencing the formation of haze and photochemical smog, and source apportionment methods, thereby providing a scientific basis for air pollution governance.

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Data

The Compound Annual Growth Rate (CAGR) of the Global Sports and Fitness Wearable Device Market in 2019 Will Be 29%:According to the forecast in TechNavio’s report, “Global Market for Fitness/Sports Wearable Devices and Services,” the compound annual growth rate (CAGR) of the global smart fitness and sports wearable device market from 2014 to 2019 is projected to be 25.4%, while the CAGR of the smart fitness and health services market during the same period is expected to reach 29.9%.

The market size of China's mobile healthcare industry in 2015 was RMB 4.88 billion:According to the “2015 China Mobile Health Market Research” report released by Analysys International, the number of mobile internet users in China was projected to reach 780 million in 2015 and rise to 860 million by 2017. The market size of China’s mobile health sector amounted to RMB 4.88 billion in 2015 and was expected to exceed RMB 20 billion by 2017, with a significant rebound in market growth rate anticipated in 2016. Between 2015 and 2017, the forecasted transaction volume for China’s internet healthcare market indicated a decline in the proportion of online healthcare transactions, accompanied by a rise in mobile healthcare transactions.

9% of consumers may purchase smart devices in the next year:Accenture has released a report on consumer experiences with smart devices, pointing out that the general public’s acceptance of such devices remains low. For instance, only 6% of consumers currently own wearable health devices. While 9% of consumers may consider purchasing these devices within the next year, over the next five years, up to 39% of consumers are expected to buy such products.

New Technologies

Journal “Oncotarget”: Graphene Oxide—A New Anti-Cancer Therapy
Scientists at the University of Manchester have discovered a novel approach to cancer treatment: using graphene to selectively kill tumor stem cells without damaging other healthy cells. This new method could enable non-toxic therapies for certain types of cancer.

Geneticists Begin Conducting Online DNA Testing via the Internet
An alliance of geneticists and computer programmers, calling itself the World Genomics and Health Alliance, is developing a protocol for exchanging DNA information across the internet. One of the organization’s initial demonstration projects is a simple search engine. This engine can sift through tens of thousands of human genomic DNA sequences stored at nine locations, including Google’s server farms and the University of Leicester in the UK. According to the organization, the search engine serves as the switch for the DNA network, ultimately linking millions of genes together.

Capital