Core Insights - The online prescription drug market is experiencing significant growth, with sales projected to reach between 35 billion to 40 billion yuan in 2024 [1] - Prescription drugs have maintained a leading market share in the online drug sales sector for five consecutive years, outpacing over-the-counter drugs [2] - The growth of the online prescription drug market is supported by the increasing use of electronic prescriptions issued by internet hospitals [3] Market Dynamics - The average price of electronic prescriptions has decreased to between 0.4 to 0.6 yuan, contributing to the market's expansion [3] - Major platforms have reported an annual issuance of over 20 million prescriptions, with the total number of electronic prescriptions reaching hundreds of millions [6] - The electronic prescription industry is estimated to be nearing a scale of 1 billion yuan [6] Industry Structure - The electronic prescription process involves multiple stakeholders, including consumers, pharmacies, platforms, internet hospitals, and doctors, creating a complex supply chain [10] - Pharmacies pay an annual fee and a small review fee for each prescription issued, while platforms charge between 0.4 to 0.8 yuan for each prescription from third-party providers [8][9] - Doctors receive minimal compensation for each prescription, often around 0.4 yuan, and the process is increasingly dominated by AI, raising concerns about the thoroughness of prescription reviews [11] Regulatory Environment - The evolution of electronic prescription policies has transformed the medical market, with over 350,000 institutions connected to the medical insurance electronic prescription system as of July this year [16] - The shift in regulatory focus has moved from strict prohibition to a more balanced approach, allowing for the online sale of prescription drugs under certain conditions [20][21] - The regulatory landscape continues to evolve, with future standards expected to enhance safety and compliance in the electronic prescription process [22][23]