DiDi(US:DIDIY) Di Yi Cai Jing·2025-08-25 00:05Core Viewpoint - The online prescription drug market in China is experiencing significant growth, driven by the increasing acceptance of electronic prescriptions and the expansion of internet hospitals, with sales projected to reach between 35 billion to 40 billion yuan in 2024 [1][2]. Group 1: Market Dynamics - The market share of prescription drugs in the online retail sector has consistently outperformed over-the-counter drugs for five consecutive years, indicating a strong trend towards online pharmaceutical sales [1]. - The average price for electronic prescriptions has decreased to between 0.4 and 0.6 yuan, facilitating the growth of the online prescription drug market [1][2]. - Major platforms like Meituan, Ele.me, and Alibaba Health are integrating external suppliers to meet consumer demand for prescription services, creating a robust electronic prescription supply chain [1]. Group 2: Pricing and Payment Structure - E-commerce platforms pay external suppliers between 0.4 and 0.8 yuan per prescription, while these suppliers compensate doctors between 0.2 and 0.4 yuan based on various performance metrics [2][5]. - The low cost of electronic prescriptions has led to a significant increase in the volume of prescriptions issued, with leading platforms surpassing 20 million prescriptions annually [4]. Group 3: Industry Structure and Roles - The electronic prescription industry operates on a complex chain involving consumers, pharmacies, platforms, internet hospitals, and doctors, with each entity sharing in the revenue generated [6]. - Although doctors are involved in the prescription process, many prescriptions are generated with significant AI assistance, raising concerns about the thoroughness of patient evaluations [7][8]. Group 4: Regulatory Evolution - The regulatory landscape for electronic prescriptions has evolved from strict prohibitions to a more permissive framework, allowing for the online sale of prescription drugs under certain conditions [12][18]. - As of July 2023, over 350,000 institutions have connected to the medical insurance electronic prescription system, with a cumulative issuance of 63 million prescriptions, reflecting a significant shift in policy and market dynamics [10]. Group 5: Future Outlook - The online prescription drug market is expected to continue expanding as policies become more refined, the medical insurance settlement system becomes more interconnected, and technology in AI and internet hospitals matures [20].