Closed-Loop “Internet + Medical + Pharmaceutical + Insurance” Ecosystem Leader MediTrust Health Completes B Series Funding; Internet Giants Help to Build New Medical and Healthcare Infrastructure
On 5 March, MediTrust Health officially announced the completion of its series B funding exercise worth RMB 1 billion, following the company’s previous strategic funding exercise backed by China Life Reinsurance Company Ltd. in March 2020.
This funding exercise was backed by joint lead investors Ant Technology Group Co. (“Ant Group”), the Shanghai Biomedical Fund and Sinovation Ventures, co-investors Huaxing Growth Capital and Northern Light Venture Capital, and continued support from series A funding lead investors BioTrack Capital and existing shareholders Marathon Venture Partners and SAIF Partners. Upon completion of this round’s funding, MediTrust Health obtained support from medical, health insurance and Internet platform shareholders, forming a cross-perspective capital consensus.
MediTrust Health CEO Zhang Xiaodong said, “As the founder of the ‘Internet + Medical + Pharmaceutical + Insurance’ ecosystem, this round’s funding will further consolidate MediTrust Health’s competitive advantages in the field of cross-border payments, enabling the mapping out of key services for innovative medical payments as we continue to expand innovative service offerings in vast and diversified fields such as the digitization and industrialization of web-based medical offerings. In the future, MediTrust Health will continue to leverage the strengths and resources of its various shareholders, using its role as a payment service provider to sufficiently consolidate various industry aspects and link up the entire medical ecosystem through empowering pharmaceutical companies, pharmacies and insurance companies. MediTrust Health also aims to fortify its absolute leader advantage in the closed-loop ‘Internet + Medical + Pharmaceutical + Insurance’ ecosystem driven by the company’s role as a payment service provider while helping build new web-based infrastructure for pharmaceutical and healthcare industries.”
The RMB 1 billion funding obtained by MediTrust Health stands testament to the investors’ recognition of the company’s unique “Internet + Medical + Pharmaceutical + Insurance” ecosystem service model. The involvement of the Ant Group will assist MediTrust Health in its expansion into the areas of web-based medical products and service boundaries while expediting the digitization of web-based medical offerings. Meanwhile, the group of strategic investors of which Shanghai Biomedical Fund is a part of will consolidate industry resources to provide continuous support for market-based operations.
As one of the lead investors in this round’s funding exercise, Ant Group’s vice-president Ji Gang said, “MediTrust Health is anchored as a provider of innovative payment services. On the consumer-end, they gather data on the needs of self-paying patients. Meanwhile, on the provider-end, they ensure effective integration and connection among pharmaceutical companies, pharmacies, insurance companies and hospitals. This then forms a commercial closed-loop ‘medical, pharmaceutical and insurance’ ecosystem. As a strategic investor, we recognize the strategic value that has been harnessed by the company in the area of innovative payment services. We will also continue to support the company’s rapid development and jointly work towards resolving medical payment-related issues and providing better medical security for users.”
Shanghai Biomedical Fund CEO Liu Dawei said, “In tandem with the release of new dividends in the ‘Internet + Medical + Pharmaceutical + Insurance’ incremental market, we continue to be optimistic about MediTrust Health’s position as a pioneer and leader in this field. We value MediTrust Health’s Massive target areas, clear value proposition, strong business growth and excellent management team. We hope that MediTrust Health will be able to maintain its spirit of innovation and work hand-in-hand with us to create value in the medical field and promote good health among citizens through innovative medical payment solutions.”
Sinovation Ventures’ Chairman and CEO Dr. Kai-Fu Lee expressed confidence in this round’s funding exercise, saying, “MediTrust Health has become the largest pharmaceutical and insurance partner and payment service provider in the field of health insurance. It has successively launched a number of innovative services such as high-value pharmaceutical financial installment services and efficacy insurance. Currently, MediTrust Health has a significant advantage in the closed loop ‘medical, pharmaceutical and insurance’ chain.”
MediTrust Health, which was established in August 2017, is the leading brand in China for innovative medical payment services. Ever since the establishment of the company, MediTrust Health has been committed to promoting the thorough integration of financial tools and the medical sector by linking up patients, pharmaceutical companies and commercial insurance companies through its innovative medical payment methods powered by Internet+ technologies. These efforts realize its corporate vision of “Guaranteed healthcare for everyone and fuss-free payments”. Currently, MediTrust Health has built a diversified service system encompassing patient services, commercial insurance services and pharmaceutical company services.
It is noteworthy that Care2pay, its subsidiary medical payment and patient benefits platform which provides patients with Internet and medical management services, is the most influential integrated pharmaceutical benefits brand in China. Through innovative payments, innovative retail and innovative services, Care2paycreates an in-depth value chain between chronic diseases and specialty drugs which involves pharmaceutical companies, pharmacies and commercial insurance companies. The said platform solves long-standing issues such as difficulties in purchasing drugs, high drug prices and the lack of guaranteed efficacy while enabling pharmaceutical companies to reach precise customer groups and perform efficient conversions. Currently, Care2payhas established partnerships with over 50 pharmaceutical companies to offer the most comprehensive coverage of high-priced specialty drugs for cancer and chronic diseases. Care2pay’s business network covers the most DTP pharmacies in China in over 400 cities, serving over a million patients and helping patients save over RMB 1 billion in medical costs on a yearly basis.
Due to the effects of the pandemic in 2020, the Chinese health insurance industry maintained continuous and rapid growth while the integration of “pharmaceutical and insurance” components have become a new development trend in the health insurance industry. As of today, using the field of oncology specialty drugs as a starting point, MediTrust Health has successively launched over 50 types of drug insurance plans with commercial insurance companies. On this basis, it has developed more comprehensive innovative health insurance products covering drugs, equipment and innovative therapies to offer protection for tens of millions of healthy people and families.
Furthermore, MediTrust Health has helped build a multi-level medical insurance system in China, having successively launched its Urban Supplementary Medical Insurance Schemes in several cities and with insurance companies since end-2019. MediTrust Health’s Urban Insurance business is first in terms of the number of cities covered and cumulative number of policies sold which offer patients practical forms of medical security. Relying on the continuous drug supply capabilities and stable risk control capabilities of the company’s major shareholders Shanghai Pharmaceuticals and China Life Reinsurance Company (“China Re Life”), MediTrust Health has played the role of “connecting the dots together” through innovative methods and high-quality and high-efficiency measures to improve local citizens' access to medicines and alleviate the financial burden incurred from medical expenses. China Re Life General Manager Tian Meipan said, “Leveraging our innovative practices of industry integration represented by the consolidation of product and pharmaceutical components and our advantage in the field of big data risk control, we hope to assist MediTrust Health in its continuous quest to optimize and upgrade its ‘Internet + Medical + Pharmaceutical + Insurance’ ecosystem in the process of creating commercial value. Through cooperating with multiple parties, we aim to promote further synergy between the health insurance and web-based medical industries and drive the development of these industries.”
MediTrust Health has also set up a web-based hospital subsidiary known as iCare internet hospital (also known as “Hainan MediTrust Web-Based Hospital”) which was approved for operations in November 2020. The web-based hospital is the first-of-its-kind independently established in the Hainan Boao Lecheng international medical tourism pilot zone. In the future, the web-based hospital in Boao Lecheng will harness the inherent advantages of Internet digitization and smart technologies to link up new drugs, new therapies and new devices around the world to serve domestic patients. This move is also set to further expand the construction of medical service infrastructure, in keeping with MediTrust Health’s leading position in the areas of pharmaceutical and commercial insurance.
Kevin Chen, the Founding Partner of BioTrack Capital which made an additional investment in this round’s funding exercise, said, “We really approve of the MediTrust team and founder, and we are optimistic about the huge market potential that the ‘race track’ of health insurance offers. As MediTrust’s A Series lead investor, BioTrack Capital’s participation in subsequent funding exercises of MediTrust is primarily due to the iterative innovation that the company has performed on the commercial model and its industry forerunner status in terms of its extensive and diversified product range. We also hope that MediTrust’s products can benefit tens of millions of patients in China.”
Upon the completion of this round’s funding exercise, MediTrust Health will leverage the strengths and resources of its shareholders and partners which will be instrumental in upgrading its key competitive edge in web-based medical care, medication management services, health insurance and other fields. This exercise will also help incorporate web-based functionalities into the closed-loop “Internet + Medical + Pharmaceutical + Insurance” ecosystem services and facilitate the development of new digitized medical and healthcare infrastructure and China's value-based medical care sector.