Tianjin Tongrentang Group Partners with Online Pharmacy Giant 111, Inc.

In a partnership combining one of China’s oldest names in pharmaceuticals with one of its newest, 111, Inc. (NASDAQ: YI) (“111” or the “Company”) is partnering with Tianjin Tongrentang Group. Co., Ltd. to deliver traditional Chinese medicine using big data and artificial intelligence, the drivers behind China’s largest online pharmaceutical retailer 111. Founded in 1669, Tianjin Tongrentang will use 111’s Internet healthcare platform for direct sourcing. The 111 platform provides online-offline channel integration, product promotion, big data customer analysis, brand awareness and patient education. The partnership will make it easier for patients and households to access the full range of Tianjin Tongrentang’s traditional Chinese medicine products and services.

The cooperation will leverage 111’s integrated online-offline healthcare platform and cover a wide range of Tianjin Tongrentang products, expanding the company’s addressable market for premium products as well as products developed exclusively for the 111 online platform.

Following China’s recent healthcare reforms, the separation of drug prescription and distribution has accelerated, and in particular, the expanded geographical coverage of “4+7 Centralized Urban Pharmaceutical Procurement Policy” has made online-offline retail channels outside hospitals the new focus of pharmaceutical manufacturers. The 111-Tianjin Tong Ren Tang partnership will bring the latter’s products to tier 3, 4 and 5 cities as well as expand coverage to include more pharmacies, private hospitals and clinics, and leverage 111’s nationwide supply chain and expertise in Internet technology.

Dr. Gang Yu, Co-Founder and Executive Chairman of 111, commented that Tianjin Tong Ren Tang is a time-honored brand with broad product offerings, and 111 will assist it in delivering its exclusive drugs and proprietary products to a wider market, benefiting more consumers, and that 111 looks forward to deploying its technologies to spur continued growth of this national and “centuries old” brand.

Zhang Yansen, Chairman of Tianjin Tongrentang, said that, as a time-honored brand, Tianjin Tongrentang has a business philosophy based on “integrity, product quality, and innovation”. He said that in recent years his company has embraced the Internet and exploited Internet platforms to continue business model innovation and to reduce middlemen in its distribution chain and provide easier access to its high-quality products and services.

SOURCE 111, Inc.