On 28 May, 2015, Shanghai Fosun Pharmaceutical (Group) Co.,Ltd. (“Fosun Pharma”) and Guahao(Hangzhou)Technology Co., Ltd. (“Guahao.com”), two leading companies respectively in China’s pharmaceutical industry and Internet-based medical industry, signed a strategic cooperation agreement. Both parties will make the best of their superior recourses, and carry out in-depth collaboration in aspects including technology, platform, market and media, so as to establish a tightly integrated O2O alignment.

Fosun Pharma is a leading listed company in China’s pharmaceutical industry, while Guahao.com, which has developed into the largest Internet-based medical platform, is a medical service registration and healthcare information platform approved by the National Health and Family Planning Commission of the People’s Republic of China. The two leading companies’ forming of a tightly integrated O2O alignment may reconstruct the internet-based medical industry in the future.

From the details of the strategic cooperation, both parties will focus on four major sectors, respectively are “pharmaceutical e-commerce, medical services, commercial insurance cooperation, and investment cooperation”, to carry out long-term and sustained strategic cooperation. Wherein, pharmaceutical e-commerce and medical services are the key sectors in the cooperation.

In fact, the two companies have cooperated for a long time. Early in the end of 2014, Fosun Pharma transferred the majority ownership of jxdyf.com (金象网), a leading website in China’s internet-based medical industry, to Guahao.com. Both parties partnered up to manage the operation of jxdyf.com (金象网). While this time, the cooperation in the medical e-business still takes jxdyf.com (金象网) as a carrier to jointly accelerate the website to enter the capital market. Fosun Pharma will make the best of its, as well as its member enterprises’ advantages in drug distribution and supply system as well as delivery system to provide resources in pharmaceutical field for jxdyf.com (金象网) continually.

In the meantime, Guahao.com, holding massive resources of buyers and users, will introduce enormous resources of doctors and patients for jxdyf.com (金象网). According to Guahao.com’ s data, as of 31 March, 2015, Guahao.com’ s service covered 24 provinces and cities with 52.77 million patients with real-name authentication; 160 million people made appointment request in 2014. Based on the internet-based medical platform with the largest user scale, the future development in medical e-business of jxdyf.com (金象网) implies huge potential.

“The strategic cooperation between Guahao.com and Fosun Pharma will enormously expand jxdyf.com (金象网)’s internet-based e-business.” Said Liao Yuanjie, Founder, Chairman and CEO of Guahao.com. Liao stated that Guahao.com accurately understands users’ needs and holds users’ medical and healthcare big data, which enables needs to motivate supply, so as to achieve C2B. “The cooperation between Guahao.com and Fosun Pharma is like the electrical polarity, which combines ‘Medicals, Pharmaceuticals and Insurance’ perfectly.”

In addition to medical e-business, internet-based medical service is also the cooperation focus of the two leading companies. As agreed by both parties, Fosun Pharma will introduce its doctor resources to Guahao.com’ s We Doctor Group, with top experts being introduced as expert panels. Taking its platform advantage, Guahao.com will provide services including branding, patients matching according to diseases patients adopt, treatment transfer according to diseases patients adopt, patients management and medical record management for expert panels among Fosun Pharma’s hospital resources.

Fosun Pharma established the Internet Business Development Department this year, focusing on the combination of internet-based medical business innovation and current business. Chairman of Fosun Pharma Chen Qiyu stated that the cooperation complies with the nation’s healthcare reform and the development trend of Internet+, meeting the demand of the Company’s Internet business strategic layout and development. The development of “Insurance, Medicals and Pharmaceuticals” industry chain and the launch of new model of internet-based medical business will improve patients’ service experience, genuinely realize the patient- and doctor-oriented goal, and provide better products and services for the society.

“Over the past 5 years, Guahao.com have successfully accomplished three major goals. First, transferring registration process outside hospitals; second, optimizing doctors’ working time; and third, establishing consumption chain of medical treatment, pharmaceuticals and insurance.” Liao Yuanjie stated that Guahao.com coincides with Fosun Pharma on establishing the “Medicals, Pharmaceuticals and Insurance” industry chain. In addition to nurture medical e-business based on jxdyf.com (金象网) as a cooperative carrier, Guahao.com will bring more resources of both patients and experts to Fosun Pharma’s medical service business, as well as detailed and reliable health data and direct payment opportunities of commercial insurance for Fosun Group’s health insurance business.

It is reported that, in August 2014, Guahao.com obtained US$106.5 million for financing from Tencent, with Kinzon Capital under Fosun Pharma as one of the investors. The strategic cooperation between Guahao.com and Foson Pharma can be regarded not only as the continuation of both parties’ collaboration, but also as a new start of the co-development of internet-based medical business.