Ali Health promises revamped medicine-tracking system

Undeterred by China's decision to abandon its medicine tracking platform, Alibaba subsidiary Ali Health has developed a new version of the software. 

Ali Health plans to debut the new platform within a month, according to a report from electronics industry consultancy Marbridge which cites the company's vice president Wang Peiyu, saying it will be based on specifications specified by the China Food and Drug Administration (CFDA).

In February, the Chinese government issued a notice seeking feedback on its medicines traceability system, suggesting it may amend unpopular barcoding requirements including the use of serial numbers supplied by central government. It opened a comment period on the proposals, which closed on March 23.

Ali Health's Product Identification, Authentication and Tracking System (PIATS) had been mandated by the CFDA for drug tracking but was subsequently relegated to voluntary status after the agency was sued by pharma companies, who claimed it was restrictive and gave an unfair advantage to the company.

Ali Health operates an online pharmacy service, taking prescriptions for medicines and distributing them in addition to operating health insurance, appointment booking and medical information services. The CFDA lawsuit was filed by Yontinhe Group, another pharmacy chain, and sought to open up the drug-tracking space to other providers.

The transition to Ali Health's new platform will be free for companies that have previously signed up for the system, and all users will be exempt from tracking fees for the first three years, says Marbridge, adding that Ali Health will only collect fees for "technical support concerning data storage or interface interchanges."

Alibaba's subsidiary has also said that it will make the service free for use by the public and will develop an app to allow patients to verify their medicines using a smartphone.