On September 24th, 111 Inc (YI.US), a Chinese Internet medicine and health leader, held in Shanghai the "inclusive Digital Link Technology"-the 2019 third China Internet Medicine and Health Summit and 111 Inc Partnership Conference. Dr. Yu Gang, co-founder and executive chairman of 111 Inc, pointed out that in the next 10 years, the pharmaceutical and health industry will surpass real estate and automobile to become the largest industry in China. Digital technology is the main driving force for the rapid development of this industry.

At the conference, Liu Junling, co-founder, chairman and CEO of 111 Inc, also pointed out that 111 Inc, as a technology company, uses digital technology to organically connect patients with drugs and medical services. "at present, 111 Inc has created an ecosystem, including pharmaceutical companies, pharmaceutical distributors, drugstores, hospitals, doctors, insurance, and we empower all the participants in the ecosystem."

In fact, with the promotion of medical policies such as the continuous increase of online science and technology and the normalization of national volume procurement, it not only brings challenges to the commercialization of drugs in the new era, but also brings great opportunities. In this context, the innovation of 111 Inc platform has also attracted more and more cooperation and attention from pharmaceutical companies and institutions.

This conference is also a closely watched pharmaceutical industry summit, attracting nearly 600 guests from well-known pharmaceutical companies, medical industry, pharmacies, investment institutions and government leaders at home and abroad. At the same time, on the day of the meeting, seven well-known enterprises, including Novartis, Bayer Pharmaceutical, Huluwa Pharmaceutical, Xiangxue Pharmaceutical, Agilent, Pharmaceutical Union Health, and Zhiye Health, signed a strategic contract or launched the project with 111 Inc.

From the above-mentioned signing cooperation direction, it mainly includes omni-channel drug commercialization cooperation, strategic cooperation of ecologically linked resources of all parties, and direct cooperation of innovative drug patients. In the eyes of people in the industry, 111 Inc is building a closed-loop ecosystem of medicine, medicine, insurance and patient management through digitization, especially the strategy of omni-channel drug commercialization platform launched by 111 Inc, which is promoting more and more innovative drugs of pharmaceutical companies to achieve nationwide commercialization and broad market coverage.

Internet science and technology empowerment

"Medical and health is a race track that is always sunny and never sets, and it is also the fastest growing industry in China. In the past five years and even in the next five years, the entire medical and health industry will continue to grow at a growth rate of not less than 12%. In other words, within ten years, the medical and health industry will surpass the real estate industry and surpass the automobile industry to become the largest industry in China." Yu just pointed out at the above-mentioned meeting.

At the same time, Yu Gang also pointed out that China's pharmaceutical industry is also the most fragmented, the least efficient, and the industry with the most pain points. For example, there are 480000 pharmacies, half of which are monomer pharmacies, and the largest chain stores account for no more than 2% of the market. Due to the lack and imbalance of medical resources, it is difficult for patients to see a doctor and expensive to buy medicine.

However, with the development of science and technology, the inefficiency and opacity of circulation are being changed. Science and technology empowerment is creating great value for the future of this industry, and this is also the final impact of the Internet on the pharmaceutical and health industry.

Yu Gang believes that in the future, there will be three irreversible trends in the field of medicine and health, that is, the population will continue to be aging, and the proportion of China's population over 65 will double in the next 30 years; the policy is irreversible, and prescription drugs will certainly be released online. Online health insurance must be opened in all regions, and it will be digitized in the future. With the continuous development and irreversible change of technology, the Internet era has been updated to the intelligent era. Big data can gain a deeper insight into customers, understand their portraits and behavior, and provide personalized service and precision marketing for all patients.

It is worth noting that with the continuous changes of national policies such as national health insurance negotiations and normalization of volume procurement, great changes are taking place in the pharmaceutical industry, and the traditional marketing and business models will be impacted.

"for example, zero plus, two-vote system, drug proportion and so on have all had a profound impact on the industry. But at the same time, challenges and opportunities coexist, especially for digital links, such as prescription drug outflow, broad market, direct doctor-patient access, and so on. " Liu Junling pointed out.

Cai Jiangnan, founder and executive director of Shanghai Chuangqi Health Development Institute, held a round-table dialogue on "Digitalization: the Future of Development and change in the Medical and Health Industry". Novartis AG (China) President Zhang Ying, Eli Lilly and Co China President and General Manager Ji Liwen, Ai Kunwei Asia Pacific President Lui Zihou, and Abbott Laboratories Pharmaceutical Business China General Manager Jin Fangqian also discussed the development and reform of the pharmaceutical industry under the digital background. it is agreed that digitization will better help enterprises improve efficiency and performance.

In fact, under the above background and the three irreversible trends in the field of medicine and health in the future, Internet medicine and health has also ushered in an unprecedented opportunity for development, which also helps the transformation of traditional medicine companies and provides more convenience for patients.

For example, the characteristics of rapid penetration of Internet medicine can enable the needs of pharmaceutical companies to quickly infiltrate into the vast market. This public health incident highlights the role and value of Internet medicine and health, and helps offline hospitals reduce pressure. Help patients reduce cross-infection, and create a variety of convenience.

In the round-table conversation "Digital Technology empowerment-opportunities and challenges for the commercialization of innovative drugs", Wanxin, founder and CEO Zhang Yuan, Alex CEO Mou Yanping, Pfizer Inc Biopharmaceutical Group China Oncology and rare Diseases Business General Manager Li Jinhui, 111 Inc Co-founder, Chairman and CEO Liu Junling, 111 Inc Chief Innovation Officer Guo Anfeng also discussed the opportunities and challenges faced by the commercialization of innovative drugs.

"Internet technology has great advantages. One network covers the whole country, no geographical restrictions, 7 × 24-hour service, unlimited shelves, real-time data can track customers, provide personalized services for customers, and very importantly, avoid cross-infection. 111 Inc provides cloud pharmacy, cloud clinic, cloud inventory, cloud CRM and other services for pharmacies, we can share more than 300,000 kinds of medicines with pharmacies. Wearable equipment, real-time monitoring of vital signs of patients, real-time remind patients of exercise, medical treatment, medication and so on. " Yu Gang gave further examples.

However, Yu Gang also stressed that offline medicine purchase is also indispensable, because it has its own advantages, such as doctor-patient interaction, X-ray, blood sampling, CT, ultrasound, and so on. Offline drug purchase is also available immediately, so it must be organic integration online and offline in the future. In fact, this is also an important reason why 111 Inc and 280000 domestic drugstores have reached an integrated cooperation online and offline.

It is understood that 111 Inc was listed on NASDAQ in September 2018 and has been growing at a rate of about 100 percent for seven quarters. This is due to the fact that 111 Inc has built the largest network of virtual drugstores in China and even in the world. Prescription drugs account for more than 70%, reflecting 111 Inc's professionalism.

According to public data, as of June 30, 2020, 111 Inc had set up a network covering 280000 pharmacies across the country, accounting for more than 50% of the total number of pharmacies in China, with the coverage of pharmacies in tier 3-6 cities exceeding 63%.

As a leading Internet pharmaceutical health enterprise listed on US stocks, 111 Inc has seized the strategic opportunity of drug commercialization in the new era, continuously enhanced intelligent supply chain technology, established China's largest online and offline integrated pharmaceutical health platform, built omni-channel drug commercialization capability, and empowered the industry through cloud solutions, and has become the preferred partner for pharmaceutical companies to open up a broad market for pharmaceutical health.

Wei Zhe, founder and chairman of Jiayu Fund, also stressed in his keynote speech at the above-mentioned conference that medical channels should be digitally transformed from the outside to the inside.

During the conference, 111 Inc formally signed a strategic cooperation agreement with Guangzhou Xiangxue Pharmaceutical Co., Ltd. (referred to as "Xiangxue Pharmaceutical"). The two sides will deepen cooperation in the field of "Internet + Pharmaceutical". Realize the value sharing of industrial chain innovation and digital exploration in the field of traditional Chinese medicine.

According to the agreement, 111 Inc will become the omni-channel business partner of Xiangxue Pharmaceutical, through the integration of intelligent supply chain, big data, digital marketing, cloud service and other technologies, help Xiangxue Pharmaceutical's rich traditional Chinese medicine products expand and infiltrate into the broader online and offline market in a more efficient way.

In addition, 111 Inc also signed a strategic cooperation framework agreement with Agilent Technology (China) Co., Ltd. (hereinafter referred to as Agilent). The two sides will carry out in-depth cooperation in the areas of commercialization of omni-channel products, online and offline service capabilities, access to end customer resources and integration of business development teams.

This time, 111 Inc and Agilent will empower each other, integrate the advantages of oncology doctor-patient management platform and intelligent supply chain, jointly expand hospitals and third-party laboratory terminals in a transparent and efficient way, and jointly produce patient education content. actively explore online and offline drugstore end-to-end linkage of patient education, and further improve the health level of patients.

Explore the whole life cycle management plan of patients

In fact, through digital links, enterprises that cooperate with 111 Inc also show a "triple jump" situation. For example, more than two years ago, only with more than 60 pharmaceutical companies, a year ago and more than 120, now there are 259 pharmaceutical companies, forming a strategic cooperation.

In addition, 111 Inc also provides omni-channel commercial services for a large number of pharmaceutical companies, and has made great efforts in digitizing this kind of service to patients.

"what we hope to create is a digital professional management platform, and our mission is to use digital technology to organically connect patients with drugs and medical services." 111 Inc is also working with pharmaceutical companies to explore patient life cycle management, Liu Junling said.

According to the outline of the 2030 Strategic Plan for healthy China, in order to cope with the accelerated aging of the population and the changes in the disease spectrum, it is necessary to vigorously improve the convenience of consumers to purchase drugs and constantly optimize health services, which puts forward strategic guidance and direction for the development of the Internet medicine and health industry.

By jointly building high-quality digital patient education content and services, the two sides will achieve efficient communication and links among patients, doctors (pharmacists) and pharmaceutical companies, and greatly improve the efficiency of medical services. improve the quality of life of patients, especially cardiovascular / oncology and other chronic diseases, and effectively promote the construction of a patient-centered health management service system.

Wang Lei, AstraZeneca PLC's global executive vice president, international business and president of China, pointed out in a keynote speech on "multinational pharmaceutical companies exploring new opportunities for development under the new situation" that pharmaceutical companies cannot serve patients directly, and 111 Inc can act as a data bridge to help AstraZeneca PLC manage tumor patients.

At the above conference, Novartis AG (China) and 111 Inc jointly announced the "Yinju Future-Psoriasis Disease Management" project, which will actively explore a new mode of cooperation in the field of "Internet + psoriasis".

Zhang Ying, president of Novartis AG (China), said that the public health incident has further accelerated the development of the Internet medicine and health industry, which can not only improve the accessibility of drugs, but also provide great convenience for patients to obtain medical services.

It just seems that it is difficult to see a doctor and expensive to buy medicine has always been a pain point for Chinese patients. 111 Inc's mission is to use digital technology to organically connect patients with drugs and medical services. The cooperation and exploration with Novartis in the field of "Internet + psoriasis" can not only meet the needs of patients, but also in line with the future development trend of the industry.

In addition, 111 Inc also signed a strategic agreement with Bayer Pharmaceutical and Health Care Co., Ltd. (referred to as "Bayer Pharmaceutical"). In particular, we will achieve in-depth cooperation in the fields of commercialization of innovative drugs, professional management of chronic diseases, and patient education, so as to jointly open up a broad blue ocean of the Internet medicine and health market.

According to the agreement, Bayer Pharmaceutical's rich innovative drugs, original drug research and other resources will rely on 111 Inc's omni-channel drug commercialization platform to increase coverage in the broad market of line 3 to 6. 111 Inc will also rely on his rich sales network to help Bayer Pharmaceuticals strengthen retail channel management capacity, improve patient access rate, and further promote the healthy development of the retail market.

Zhang Jingchuan, senior director of national retail management of Bayer's prescription drugs division, said that the cooperation between the two sides has given full play to their unique advantages in the medical and pharmaceutical fields, greatly improved drug accessibility, and brought better disease solutions to patients, achieving a win-win effect of 1: 1 > 2.

In the future, 111 Inc will join with more industrial chain partners to continuously deepen the commercialization of omni-channel drugs, explore patient life cycle management solutions, and create a patient-centered and doctor-oriented, full-process digital and intelligent medical health management service platform to make greater efforts to implement the mission of organically connecting patients with drugs and medical services with digital science and technology.