The Joint Venture taps into China’s growing demand for online healthcare solutions
IDS Medical Systems Group Limited (“idsMED Group”) and We Doctor Holdings Limited (“WeDoctor”) today signed an agreement to form “idsMED WeDoctor China Ltd” (the “Company”), creating China’s first smart medical supply chain solutions and procurement company.
idsMED WeDoctor China Ltd and the government of Changting County in Fujian Province also today signed a strategic cooperation agreement to drive the establishment of an innovative medical devices platform in Ting Zhou, China.
The platform is designed to create new channels for medical devices and consumables to conduct technology transfers, license applications, company establishment, as well as investment and capital market coordination. The platform aims to support and attract both domestic and international medical device providers into Changting.
idsMED Group, a member of the Fung Group, is Asia’s leading and largest integrated medical supply chain solutions company with a comprehensive distribution and value-add service network across Asia.
WeDoctor, China’s leading technology-enabled medical and healthcare solutions platform backed by Tencent, provides seamless online and offline healthcare services as well as integration of general practitioners and specialist doctors. It uses big data, artificial intelligence and other sophisticated technologies to deliver cutting-edge healthcare support services to over 2,700 hospitals, 240,000 doctors and 160 million platform users in China.
The two parties, leveraging on their complementary strengths, innovative resources and networks, will seek to connect medical manufacturers and service providers with hospitals and care institutions in China to procure medical devices, consumables and services centrally. The Company aims to transform the currently fragmented, multi-layered and relationship-driven medical device and consumables distribution system in China, to significantly reduce costs and increase the efficiency and effectiveness of the medical supply chain.
The joint venture, owned 51% by WeDoctor and 49% by idsMED Group, will further enhance its value proposition by managing and optimizing the entire medical supply chain. Additionally, it will set up Medical Education and Training Academies across China to deliver and promote medical products and clinical education as well as accredited medical training courses and education seminars for doctors and nurses and the medical community.
Speaking at the signing ceremony today, Jerry Liao, Chairman & CEO of WeDoctor said, “The healthcare sector in China is a flourishing market going through rapid change and unprecedented reform. This cooperation is an important initiative of WeDoctor to contribute towards improving the supply chain efficiency of China’s medical service system. I am tremendously excited at the huge prospects of our partnership with idsMED Group to provide China’s vast population with more accessible, more affordable and better-quality healthcare services.”
Ben Chang, Chief Executive Officer & Founding Partner of idsMED Group, added, “This joint venture provides significant strategic value to the medical industry and immense socio-economic benefits to the people of China. WeDoctor is the perfect partner for us to develop and implement a smart, neutral online platform to provide a transparent, open and value-base procurement system. Together we have the unique opportunity to simplify and modernize the medical device and consumables distribution model in China and make healthcare even more affordable to the people on the Chinese mainland.”
Victor Fung, Chairman of Fung Group, concluded, “The Fung Group has been building its healthcare business in Southeast Asia through idsMED since 2011. Today, we are delighted to see the expansion of this business into China with our new partnership with WeDoctor where we see enormous potential.”
According to the China Medical Devices Report Q3 2018 by BMI Research, a research firm under Fitch Ratings, online solutions are expected to play a crucial part in the growth of China’s healthcare industry, with medical device market set to grow from US$21.5 billion in 2017 to US$39 billion in 2022.
A signing ceremony was held today in Hong Kong with Victor Fung, Group Chairman of Fung Group, Liao Shenhong, Party Committee Secretary of Changting County, Ben Chang, Chief Executive Officer and Founding Partner of the idsMED Group, Jerry Liao, Chairman and CEO of WeDoctor, as well as executives from smart healthcare solutions providers RealDoctor Co., Ltd and Zhejiang WeDoctor Centrillion Technology Co., Ltd in attendance.