[Health Road] VB Weekly Report on Internet Healthcare 20150216: Key Developments and Product Updates

Events and Perspectives

As the Spring Festival approaches, the internet healthcare sector shows no signs of taking a break.

Last week, what required extra attention was,China UnionPay,On February 13, announced a strategic partnership with Zhongshan Hospital Affiliated to Fudan University in Shanghai.Launch of "Modern Hospital" Services, patients can use mobile terminal apps to register and settle medical insurance payments in real time, simplifying the healthcare process. The landscape of mobile healthcare payment may be completely reshaped.

Meanwhile, Alibaba, leveraging its unique advantage with Alipay, is further seeking strong alliances with banks. Last weekAlibaba Health Signs Strategic Cooperation Agreement with CITIC Bank, both parties will leverage their respective leading advantages in financial services and healthcare to jointly build and promote an online-to-offline (O2O) pharmaceutical e-commerce platform, collaboratively explore cooperation in areas such as medical institutions and health insurance, and achieve sharing of big data on pharmaceutical information, medical resources, and customer resources.

Unlike Alibaba, headquartered in Hangzhou, and Tencent, based in Shenzhen, Baidu, with its headquarters in Beijing, appears to be more adept at leveraging resources in the capital within the internet healthcare sector. Last weekBaidu Announces Joint Launch with the National Health and Family Planning Commission of the First Authoritative Publicity Platform for the New Healthcare Reform. It is reported that the platform integrates multiple advantageous resources under Baidu, aiming to present the complex content of the new healthcare reform to the general public in a simple and clear manner. Meanwhile, it is also China’s first authoritative platform for promoting the new healthcare reform.

which secured substantial funding last yearNeusoft is currently collaborating with Greentown on a residential community development project in Hangzhou., establishing electronic health records for every property owner in the residential community. According to VCBeat, 30 such community medical centers are scheduled to be completed by the end of 2015. The RMB 1 billion in financing secured by Neusoft two months ago will also be allocated to these initiatives.

Also expanded through cooperation,Baiyunshan, Huangzhongyao, and HaoyaoshiLast week, they signed their first strategic cooperation agreement for the “Cloud Channel” to lay out sales channels for Baiyunshan Tiema products and further deepen collaboration with pharmaceutical e-commerce platforms. It is understood that the “Cloud Channel” strategic plan for Baiyunshan Tiema products encompasses three directions: cloud channel infrastructure, cloud terminal management, and cloud service distributors.

Also last week,Chunyu Doctorannouncing the leveraging of its “strong ties” and “long-term relationships” with users,Creating a New Model of Pharmaceutical E-Commerce Based on Service. Breaking away from the traditional traffic-centric e-commerce model, Chunyu will launch its Series D financing round and plans to conduct an initial public offering (IPO) in 2017. VCBeat has published an article analyzing this strategy.The Evolution of Chunyu: Logic, Challenges, and Future of Service E-commerce。

Previously, the industry explored the feasibility of an employer-paid business model for internet healthcare within the Chinese context regarding the question of who should bear the costs. Now, new pioneers have emerged in this area. The world’s fourth-largest insurance brokerage firmJardine Insurance Brokers Group Merges with Hanshen Yisen, a Leading Domestic Medical and Health Services Company, the merged entity will integrate all of Hanshen’s businesses and Jardine Insurance Brokers’ employee benefits brokerage operations in China.

Beyond the insurance industry, players in the real economy are also accelerating their strategic deployments.Yunsheng Industrial Plans to Raise Additional Funds for Acquisition Last WeekFocused on the manufacturing of digital medical devices and the provision of informatization solutionsBeijing Medicus100% equity interest in the Technology Co., Ltd., transitioning toward healthcare informatization.

Renhe Group’s Flagship Launch"Dingdang Medicine Delivery"also last weekUnveiling the Mystery, aiming to build an internet-based information service platform for traditional pharmacies. After users place orders through the app, professional pharmacists will provide timely and safe medication guidance, while professional delivery personnel from the pharmacy will ensureFree 28-minute medication delivery within the 24/7 service area of the core zone。

One of the Overseas Highlights in Internet Healthcare Last Week:Google and Mayo Clinic Join Forces to Collaborate on Healthcare Information SearchGoogle has adjusted medical keywords for 400 common conditions to provide users with more practical search results. This medical information appears in the Knowledge Graph panel alongside Google’s regular search results, enabling users to access specific details about symptoms, treatments, and other aspects of a given condition.

BlackBerry’s Internet Healthcare Strategy Makes Further Progress, will jointly release with NantHealth the new generation of highly secure health data gateway (secure healthhub) HBox, which is expected to significantly improve the patient diagnosis and treatment process.

In terms of products and business models, most companies are also seeking new growth drivers.

For example, foreign medical device companiesDexCom is developing a blood glucose monitoring app, the app can display readings from a diabetes glucose meter embedded in the Apple Watch, positioning the device to establish an early foothold in the healthcare sector.

LG also launched a virtual reality hardware product last week., this is basically a plastic version of Google's Cardboard VR, named "VR for G3." The device is merely a plastic mold with lenses, relying on the virtual reality experience tools built into the G3 smartphone. Currently, the G3 supports only a limited number of VR applications and games, which can be purchased from Google's Play Store.

OverseasAUX Group signed merger and acquisition contracts with more than a dozen hospitals in one go before the Chinese New Year.. In line with Aux Group’s strategic deployment for developing its healthcare industry, the company aims to acquire control of 150 hospitals over the next five years through trusteeship, acquisitions, joint ventures, partnerships, and greenfield projects.

Attached:France to Vigorously Develop Medical Tourism, with Visa Simplification for Foreign Patients Expected; MedShape’s 3D-Printed Titanium Foot and Ankle Plates Receive FDA Approval;

Healthcare Reform

The National Health and Family Planning Commission Prioritizes the Development of Community-Based Home Care Integrating Medical and Elderly Care Services:Ma Xiaowei, Deputy Director of the National Health and Family Planning Commission, revealed at today’s regular State Council policy briefing that the next step will focus on developing a community-based home care model integrating medical and elderly care services.

The National Health and Family Planning Commission Will Standardize the Reimbursement Mechanism for Medical Treatment Outside the Province:Ma Xiaowei, Deputy Director of the National Health and Family Planning Commission, stated at a regular press briefing held by the State Council Information Office that efforts will be made to advance the informatization of the New Rural Cooperative Medical Scheme (NRCMS) and standardize reimbursement policies for medical treatment received outside one’s home province.

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Data

Android Wear Device Sales Exceeded 720,000 Units in 2014:A study by research firm Canalys found that Android Wear device sales exceeded 720,000 units in 2014. Among these, Motorola was regarded as the manufacturer with a clear leading advantage, and its launch of the Moto 360 received positive reviews.

In 2014, mergers and acquisitions in the biopharmaceutical industry were booming, with a total value reaching $200 billion:The HBM report shows that in 2014, the upfront payments for mergers and acquisitions (M&A) among European and American biopharmaceutical companies reached $8.18 billion, nearly double the figure for 2013. Although this did not surpass the level seen in 2009, it marked a five-year high. In the first quarter of 2009, three industry giants—Wyeth, Genentech, and Schering-Plough—were acquired by Pfizer, Roche, and Merck, respectively, with total transaction values exceeding $150 billion. This unprecedented surge remains an all-time peak in M&A activity, unmatched before or since.

China's Health Insurance Accounts for Only 8% of Total Premiums, Compared to 40% in the U.S.:The China Insurance Regulatory Commission stated that there is still a significant gap between China’s health insurance industry and the growing healthcare security needs of the public. This is mainly reflected in the small scale of health insurance premiums; for instance, health insurance accounts for only 8% of total premiums in China, compared to 40% in the United States. In addition, per capita health insurance premiums remain low, and the proportion of health insurance in total healthcare expenditures is also relatively low.

New Technologies

PLOS ONE: Japan Develops Rapid Influenza Virus Detection Device
A research team at the Tokyo Metropolitan Institute of Medical Science reported that they have developed a simple testing device capable of rapidly diagnosing influenza within 12 hours of symptom onset, with sensitivity several times higher than that of existing similar devices.

Proceedings of the National Academy of Sciences: Scientists Invent “Smart Insulin” That Works Only When Blood Sugar Levels Rise!
Scientists have invented a “smart insulin” that promises to revolutionize diabetes management. Unlike traditional insulin, this “smart insulin” does not require daily blood glucose testing and repeated injections to maintain blood sugar levels. After injection, it circulates in the body and becomes active only when needed—specifically, when blood glucose levels rise. The treatment has shown efficacy in animal trials, and scientists are planning to initiate human clinical trials as soon as possible. Experts caution that several more years of research will be required before it can be approved for therapeutic use.

New Device That "Listens" Through the Tongue Set to Disrupt the Hearing Aid Market
Hearing Device Developed by Colorado Researchers Bypasses the Ear. The technology relies on a Bluetooth-enabled headset to detect sounds and transmit electrical pulses to a capacitor with encapsulated electrodes; users press the device against their tongue to perceive sound.

3D Printing Technology Creates New Low-Cost Skull Replacement Implants
A team of biomedical engineers based at the University of Sydney has developed a new, low-cost method for manufacturing bone replacement implants for severely damaged skulls. In collaboration with the Sydney Neurosurgery Group, they have pioneered a novel 3D-printing technology that enables doctors to obtain patient-specific implants within days, rather than the weeks previously required.

Capital

Matrix Partners China’s Hu Haiqing:Our investments in the healthcare sector all share a common characteristic: platform-based companies.

Chen Penghui, Sequoia China:We invest in both platform-based mobile health enterprises and vertically focused innovative companies. Platform-based companies are still in a rapid growth phase, and there are also numerous investment opportunities in vertical sectors.

Wang Hua of Sinovation Ventures:In 2015, medical education was still in the Symbian era.