Understanding China's MedTech industry: Key companies, drivers, challenges and opportunities
This article provides an overview of the MedTech Market worldwide and then explains MedTech in China. It focuses on four key therapeutic areas (including the three main causes of death killing millions of people each year). It explains the key companies, trends and opportunities of each therapeutic area. The article concludes with a description of the health care connectivity market and the need/ opportunity to better collaborate across the industry.
Worldwide MedTech market
Medtech sector in China with focus on some selected key therapeutic areas
In this article want to concentrate four therapy areas: Cardiovascular diseases, Orthopedic, Diabetes, Minimally invasive surgery. Cardiovascular disease is the largest market and has the strongest projected growth rate.
Each market has key players and growth drivers
Key strategies adopted by MNCs in China: MedTech companies are pursuing localization strategy and establishing R&D centers, especially in case of CVD devices. In diabetes, they are partnering with government, hospitals and also pursuing acquisition strategy to grow in the market. For Orthopedics and minimally invasive surgery, companies are entering into strategic partnerships with local players, acquiring local companies and establish training centers that provides advanced training to surgeons.
Pro home-grown medtechindustry policy1: In order to elevate medtech production locally, “Made in China 2025” initiative (launched in 2015 by the China state council) establishes the target of including domestically produced components in medical devices to be 60% by 2020 and 80% by 2025.
Examination of 4 key therapeutic areas: Cardiovascular diseases, Orthopedic, Diabetes, Minimally invasive surgery
Cardiovascular
Cardiovascular is arguably the number one cause of death among the Chinese population with 44.6% in rural areas and 42.5% in urban areas in China in 2014. Cancer is second main cause of death with 22.2% and 26.1%. Respiratory diseases are third cause of death with 12% and 12.3%.
Around 40% of the cardiovascular surgeries in China are congenital heart disease-related, followed by valvular surgeries (28%) and coronary artery bypass grafting (19%).
The demand for cardiovascular devices is anticipated to rise due to growing demand in corresponding cardiovascular surgeries.
Orthopedic
An aging population is driving increases in the orthopedics implant market
Diabetes
Global players are partnering with government and hospitals to provide enhanced diabetes care in China. They are also pursuing acquisitions to grow in the market
There is growing competition from MNCs and homegrown companies alike in the diabetes care market in China. The market is expected to have increased competition from established companies, such as Dexcom, and start-ups including Glucovation, Sinocare who are currently focused on developing low-cost devices for diabetes patients in China.
Minimally Invasive Solutions
Current Stake of Health Care Connectivity
The connected care ecosystem has fragmented and data has proliferated across both consumer channels as well as traditional enterprise settings.
Golden objective is to better serve the patient and promote better health & well-being. Many different organizations can help support the patient journey through numerous value propositions.
Other important journeys to support include physicians, hospitals, and other stakeholders.
If you are a MedTech company or service clients/ customers in the Health care industry, feel free to reach out to me for a conversation. You may reach me personally at [email protected]
Legal disclaimer: This article (like any other of my articles) reflects only my personal views and does not claim to represent my current employer or any other client I have engaged with throughout the years. The article is meant to further discussion only and does not present an offer or advice from a legal perspective.