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111, Inc. Featured at 38th Annual JP Morgan Healthcare Conference

111, Inc. Featured at 38th Annual JP Morgan Healthcare Conference

by prnasia

January 18, 2020

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Junling Liu, co-founder, Chairman, and Chief Executive Officer of 111, Inc. (NASDAQ: YI) a leading integrated online and offline healthcare platform, gave an address entitled "Driving Transformation in China's Healthcare and Pharmaceutical Industry" at the 38^th Annual JP Morgan Healthcare Conference (the "Conference").

The JP Morgan Healthcare Conference, from January 14-18, 2020, in San Francisco, is regarded as one of the world's most important forums on the global healthcare sector from an investment perspective, sharing insights on emerging industry and investment trends. This year, participants joined from more than 450 public and private companies, with 9,000 attendees including industry leaders, investors and analysts.

At the conference, Chairman Liu represented China's online pharmaceutical and healthcare industry. His presentation focused on the evolving landscape and huge growth potential of China's online pharmaceutical and healthcare industry, supported by new national health sector reforms.

Chairman Liu said: "Healthcare is one of the largest and fastest growing industries in China, and is at a historical turning point. China's population is aging rapidly. By 2020, more than 245 million people will be over 60. Chronic diseases associated with aging are also rising. In 2019, there were more than 300 million patients with chronic diseases. At the same time, incomes are rising steeply, with sustained economic growth leading to higher disposable incomes. The national average for disposable income per capita was reported as US$4,000 in 2018, with urban disposable income per capita as high as US$5,858. These and other factors are leading to growth expectations in the healthcare industry at an annual rate of 12% over the next five years."^{[1],[2],[3],[4]}

Since 2019, China has launched a number of policies aimed at boosting the online pharmaceuticals and healthcare industry. These include the Centralized Drug Procurement Policy, initially introduced in 11 pilot cities (the "4+7" Policy) which will expand to more provinces and regions. China has also included online medical services in its basic medical insurance, and the new Drug Administration Law allows online sales of prescription drugs under certain conditions.

Meanwhile, the industry still faces various pain points, including high fragmentation, low operational efficiency, and lack of transparency. 111's new omni-channel e-commerce platform strategy has been designated to help pharmaceutical companies commercialize the innovative drugs that will dominate the future healthcare market as the "4+7" policy expands geographically. By leveraging its proprietary integrated online and offline healthcare platform, 111 will deliver value adding to pharmaceutical manufacturers and enable them to expand coverage beyond their current distribution channels - i.e., major hospitals in 1st and 2nd tier cities, large pharmacy chains and medical representatives, to include additional pharmacies, clinics, private hospitals, community hospitals, hospitals in 3rd to 6th tier cities and patients.

111 has also introduced a new life-cycle patient management solution, which provides the patients with consultation, medication guidance, chronic disease management and online prescription drugs refills, in an effort to improve medication adherence rates.

Chairman Liu added: "We are confident that within the next three years, 111 will cover over 400,000 pharmacies, clinics and hospitals, serve over 100 million patients directly and indirectly, and establish strategic partnerships with more than 1,000 leading pharmaceutical companies. Against the backdrop of a favorable policy environment, in the latest version of our T2B2C strategy we are building an omni-channel e-commerce platform. Going forward, 111 will remain committed to its mission of 'Technology for Better Healthcare', leveraging our innovative business model and technological expertise to upgrade and transform the industry value chain. We will work to create a more efficient and transparent healthcare ecosystem serving the demands of the domestic Chinese market."

^[1] Health China Acti...