Medtech Summit in Shanghai Touts Fertile Investment Opportunities

June 13, 2012 – The 2012 China Medical Device Industry Development and Investment CEO Summit held on 9 June 2012 in Shanghai brought together various stakeholders including government officials, medical device manufacturers and investors to discuss the state of the industry and further promote its development. CMDM Associate Editor Helen Zhang was in attendance and shares some of the highlights.

Pudong, the district of Shanghai that sprouted across from the Bund in the 1990s, is home to a burgeoning biomedical industry. More than 500 life-science companies, generating revenue of RMB 28.4 billion (€3.5 billion), are located there. In 2011, the medical device industry in the Pudong district grew by 46%.

Domestic national growth won’t reach those stratospheric heights, but it is doing quite well, nonetheless. Propelled by increased urbanisation, an ageing population, growing public awareness of healthcare issues, rising consumer spending and government support, the medical device industry is forecast to grow at a 20% compound annual growth rate for years to come, according to Chen Kaixian, Chairman of the Shanghai Science and Technology Association.

Multinational corporations control the lion’ s share of the market, noted Hua Yutao, director of China Biology Technology Development Center. Seventy percent of high-end medical devices are imported. Only about 2000 companies in China produce Class III devices.

The cardiovascular sector will achieve annual growth of 19% and be valued at RMB 420 billion (€53 billion) by 2016, according to Liu Dao Zhi, Senior Vice President, Emerging Business, Microport Shanghai Co., Ltd. In 2011, 332,992 percutaneous coronary therapy (PCT) procedures were carried out and 42,986 pacemakers were implanted in China, he added. Zhang Ruiyan, director of the Department of Cardiology in Shanghai Ruijin Hospital, noted that the comparatively high rate of cardiovascular disease will continue to increase as the population ages. PCT and minimally invasive surgery will become the mainstream technologies in this field. Noted Hu Xubo, Partner, Qiming Ventures: “It’s the ideal time to invest . . . at present, there are no leading investor brands in cardiology. We predict that special-purpose funds will do well. Over the next five years, there are more opportunities than risks.”

Another sector showing tremendous promise is medical imaging. The annual compound growth rate is forecast to surpass 15% over the next five years. Ma Qiyuan, CEO, Time Medical: “The 12th five-year plan stipulates that there are 7100 hospitals at the county level in China, only 800 of which have MRI equipment. Japan has 36 installations per million population, the United State has 31, and China only has 2.5,” said Ma Qiyua. The imaging sector faces a historic opportunity. “In five to 10 years, leading companies in China will be able to compete with foreign players,” predicted Xia Fenghua, President, Shanghai Siemens Medical Device Co., Ltd.
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Norbert Sparrow
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