(Yicai Global) Dec. 13 -- Chinese online healthcare platforms Medlinker and Doctorwork recently merged, creating a USD5 billion company, ahead of new regulations in China aimed at tightening up on the sector. The merger is one of the largest of its kind in the country in recent years.

The move will enable the combined business to increase its total number of registered doctors in future and it provides an offline service pivot for Medlinker’s online business, Yicai Global learned yesterday from a source close to the Beijing-based company.

The merged platform, which keeps the Medlinker name, has more than 1.4 million doctors and over 70 physical outlets, covering 16 first- and second-tier cities.

On Oct. 17, the National Health Commission released for feedback draft regulations covering the internet medicine sector that greatly raise the bar. Firms that lack a doctor base and give diagnosis, treatment and prescriptions by means of artificial intelligence face being cracked down on.

Medlinker founder Wang Shirui, who has been chief executive officer at both companies, is the new firm’s CEO, while Doctorwork’s former president Martin Shen is vice president in charge of the Doctorwork business unit, Yicai Global learned.

Founded in 2014, Medlinker focuses on online diagnosis and treatment. Sino Biopharmaceutical invested CNY514 million in the company last year, raising its valuation to USD4 billion. Tencent Holdings, Sequoia China, and China Electronics’ healthcare data-focused fund are also shareholders.

Doctorwork was set up in Shanghai in 2013 with a business model that favors in-person consultations. Tencent and Sequoia China also invested in the firm, whose valuation exceeded USD1 billion after its last fundraiser in 2019.

China had over 1,600 internet hospitals as of June, according to statistics from the NHC. The online sale of prescription drugs, previously seen as off-limits, is conditionally available and eligible online medical care can be included in medical insurance coverage.

Editor: Futura Costaglione