China Medicine On-Line Raises $8 Million

China Medicine On-Line Ltd., a Chinese provider of telemedicine services, has raised $8 million from the Infinity I-China Fund, a venture vehicle managed by Israel-based Infinity Equity.

 

PRESS RELEASE

Infinity Equity announced today that the Infinity I-China Fund is investing $8 million in China Medicine On-Line Ltd., a telemedicine services provider in China. According to the terms of the agreement, the allocation of funds will be made in two phases of $4 million each.

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China Medicine On-Line is the leading national integrated healthcare network in China. The company supplies a panic button service to more than eighty thousand customers, mainly 65+ years and older, in Shanghai and Nanjing. Customers may use the button, which is situated in their homes, for any circumstance, which they consider urgent. The button is connected to a call center where trained professionals are available 24/7 to guide, support and assist customers through any given situation, health related or otherwise. Plans are already under way to expand the availability of services to reach up to one million customers, of all ages, in 10 additional cities in China, during the course of the next five years.

 

“We are delighted to partner with Infinity Equity, which we consider not only a prime investor but also a valuable partner from which to source cutting edge Israeli medical devices to add to our robust platform. What we have been providing to the public with the panic button is a thriving and important service in China, especially considering that approximately 19% of China's 1.3B people are over the age of 60, and, this number is growing quickly,” said Mr. Ren Hai Bi, CEO and founder of China Medicine On-Line.

 

The China Medicine On-Line platform, which is licensed and approved by the Chinese government, is able to support a wide variety of medical device accessories. It is planned to enhance the platform with complementary, portable medical products, developed in Israel and already selling in the market. These could include a portable ECG, a respiratory unit, a blood pressure machine, and other monitoring medical devices. The upgraded system would be purposed to provide call center personnel with a customer's real time vital signs. This would enable crisis counselors to determine the true nature of a situation and advise the customer appropriately.

 

“This is the first medical oriented investment by the I-China Fund and one that we believe will have a significant impact. Israel is a leader in telemedicine; and China Medicine On-Line is a pioneer which leads this sector in China. Infinity's support of China Medicine On-Line, on top of its direct merit, is meant to serve as a bridge for Israeli technology companies interested in expanding into the Chinese market. The investment is also congruent with the Chinese government's documented Five Year Plan to improve the quality of life and the basic healthcare system servicing the Chinese population,” said Dr. Bella Ohana, Life Science Director at Infinity Equity.

“We conservatively estimate the market for the panic button service at nearly $700M and the market for future consultation services at more than $1B. We believe today's investment will not only render significant positive ramifications for the future of telemedicine in China but also turn an impressive return on investment for all participants,” said Mr. Ariel Poppel, CFO of Infinity Equity.

About Infinity Equity

Infinity Equity, founded by Clal Industries and Investments Ltd. from the IDB group, is one of the leading Israeli-related funds managing more than US$600 million and a portfolio of 45 companies. Since June 2005, Infinity has had 14 successful exits. Infinity has a highly experienced international team spanning the globe with offices in Tel-Aviv, China mainland, Hong Kong and New York. Infinity Equity is currently focused on the activities of the I-China Fund, which serves as a bridge for Israeli-Chinese business initiatives. For additional information about Infinity Equity please visit www.infinity-equity.com. To schedule an interview, please contact Media Liaison Marjie Hadad at marjie@netvision.net.il or call +972-54-536-5220.

 

About China Medicine On-Line

China Medicine On-Line, Ltd. (CMO) was incorporated in 1997 in Hong Kong SAR, PRC with its entire operations within the People's Republic of China through its owned subsidiaries – Shanghai Homecare & Healthcare Services Co., Ltd. and Nanjing Homecare & Healthcare Services Co., Ltd. CMO is established to build up a nation-wide integrated network to provide tele-homecare and tele-healthcare (2HCare) services through its dedicated call centers. The company also has plans to leverage its platforms to provide value added services and hi-tech medical products for further business growth.