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Yaoshibang

Health Tech & Medtech · Guangzhou, China · Founded 2015 · IPO 2023

Yaoshibang operates as a digital, business-to-business platform within China's out-of-hospital pharmaceutical industry. The company was established in 2015 by founder Zhang Buzhen, who brought extensive experience from the internet technology sector, previously serving as CTO at the real estate portal Soufang.com. This background in technology, rather than medicine, informed the company's approach to digitally transform a traditionally fragmented and offline industry. The firm's core business is to connect and empower participants across the pharmaceutical value chain, linking upstream entities like drug manufacturers and distributors with downstream clients, which primarily include pharmacies, private clinics, and community health centers. By the end of 2022, its network had grown to include approximately 354,000 pharmacies and 173,000 grassroots medical institutions. This extensive reach has established it as a significant player in China's out-of-hospital digital pharmaceutical services, holding a market share of 21% in 2022. Yaoshibang's revenue is generated through a dual business model combining a self-operated (direct sales) business and a third-party platform. The self-operated segment involves purchasing pharmaceutical products and selling them directly to clients, which constitutes the majority of its revenue. The platform business, on the other hand, facilitates transactions between registered third-party sellers and buyers, from which Yaoshibang earns a commission based on a percentage of the sales value. In addition to its core trading functions, the company offers a suite of other services, including SaaS solutions for inventory management, medical testing services for primary healthcare institutions, and pharmacist training programs. A significant milestone in the company's history was its successful initial public offering on the Hong Kong Stock Exchange on June 28, 2023. This followed a journey of securing multiple funding rounds from notable investors, including Baidu and Fosun Group, which enabled rapid scaling and technological enhancement. Keywords: pharmaceutical distribution, B2B e-commerce, digital health, supply chain management, out-of-hospital market, healthcare technology, pharmacy services, medical supplies, SaaS, China