Ophthalmic BD Strategy Guide: Value Alignment and Synergy Breakthrough for Buyers and Sellers [Roundtable Session VII]

The ophthalmology industry is currently experiencing a resonance of policy, technology, and capital, with transaction activity continuing to heat up. On the policy front, eye health planning is driving the decentralization of medical resources, while insurance policies are favoring innovative technologies, providing institutional safeguards for the trading of innovative assets. On the technology front, AI-assisted diagnosis, synthetic data applications, and innovations in high-end diagnostic and therapeutic devices are continuously emerging. On the capital front, domestic and international giants and investment institutions are actively strengthening their product pipelines and expanding market layouts through mergers and acquisitions.

In this context,The core issue for buyers and sellers is no longer simple transactions, but rather how to achieve value alignment, strategic synergy, and sustained value creation.Recently, the 7th session of the “China Innovative Healthcare Asset Lounge” Transaction Roundtable, hosted by VCBeat, convened investors and corporate representatives around the theme “Practical Ophthalmology Transactions: Value Alignment and Synergistic Breakthroughs for Buyers and Sellers.” By dissecting M&A logic and business development (BD) strategies through real-world cases, the event provided the industry with a highly practical “guide to breaking through.”

As China’s ophthalmology industry accelerates through both global competition and industrial consolidation, the demands of buyers and sellers are undergoing significant changes. The overall trend is no longer the one-dimensional logic of “those with capital buy, those lacking capital sell,” but is gradually evolving into a more professional, bidirectional selection process that emphasizes deeper synergy:Buyers are no longer focused solely on scale expansion; instead, they seek strategic assets that can strengthen gaps in pipelines, channels, or technologies. Sellers are also unwilling to simply “sell projects,” placing greater emphasis on who can truly drive innovation and bring products to the global market.

The buyer’s demand primarily stems from “synergy” on the industry side. Zhao Chunsheng, Investment Director at Autek China, stated that the company has fully transitioned from a single-product enterprise centered on orthokeratology (OK) lenses to a “comprehensive optometry ecosystem platform.” Since its listing, the company has simultaneously upgraded both its product offerings and medical services: on the product front, it continues to deploy high-value-added comprehensive optometry products, strengthening strategic synergy in key categories through independent R&D, collaborative R&D, incubation, investment and M&A, and business development (BD); on the medical services front, it continues to expand its network of ophthalmic hospitals and Autek Optometry & Eye Health chain stores. According to the latest disclosed third-quarter report, revenue from the company’s medical service terminals accounted for 57.7%. The company is also exploring opportunities in consumer healthcare sectors such as pediatric rehabilitation, women’s health, and aesthetic medicine, with the core focus being“Product + Service” synergy builds an ecological closed loop, breaking through the growth ceiling.

If Autek China represents a comprehensive “horizontal + vertical” expansion, He Eye focuses on deep integration and M&A in upstream technology sectors. Zhang Zheng, Investment Director of He Eye Industry, believes thatA single product is insufficient to sustain long-term growth; competitiveness must be achieved through a portfolio-based product line.Therefore, He Eye is more inclined to invest in and acquire companies with high technological barriers or established distribution networks. Its future focus spans from upstream core materials and specialized medical devices to digital imaging products. Meanwhile, He Eye is accelerating its layout in regenerative medicine, particularly by accumulating real-world data within Japan’s filing-based clinical system for iPSC-based therapies, thereby paving the way for global registration of its future pipeline. This pace of mergers, acquisitions, and investments essentially aims to build the next-generation technological foundation for its integrated medical-educational-industrial-research ecosystem.

From the perspective of innovative drug development, BoKang ShiYun occupies a dual role as both buyer and seller. Xia Wei, Vice President of Pharmaceutical Affairs at BoKang ShiYun, explained that as a buyer, the company considers four key criteria when selecting cross-border partners: global regulatory registration capabilities, channel coverage, market education capabilities, and willingness to make long-term investments. However, in overseas business development (BD) activities, they must adopt a seller’s perspective to face international competition with higher standards. Xia Wei emphasized that global BD is a systematic engineering endeavor based on compliance, reimbursement, patents, and commercialization systems. Those who can provide more definitive pathways in regulatory registration and reimbursement will gain the initiative in future international competition.

In response to the strategic acquisition imperatives of the aforementioned buyers, innovative pharmaceutical and medical device companies, acting as sellers, have drawn upon their own practical experiences to reveal a more authentic dimension of industry logic.

From the perspective of Weimou Bio, an innovative drug company, R&D itself is not the endpoint of a project; what truly determines the success or failure of business development (BD) is the buyer.Capability to successfully bring products to marketShen Wang, founder of Weimou Bio, emphasized that the key to innovative drugs lies in addressing clinical needs and delivering differentiated value. Buyers must possess a professional business development (BD) team, regulatory registration expertise, and market education capabilities to truly facilitate product commercialization. For sellers, the value of a transaction extends far beyond its price; they seek genuine partners capable of jointly advancing clinical development, reimbursement pathways, and market access strategies.

Tupai Medical, a player in the medical device sector, has also expressed similar views. Wang Yingqi, Co-founder and CEO of Tupai Medical, pointed out that Chinese medical device companies are facing two directions:Diagnostic Equipment: Focus on Global Expansion; Surgical Equipment: Focus on Domestic Substitution. In the process of global expansion, the industrial synergy of buyers appears particularly critical. Taking Topcon as an example, achieving CE certification in Europe and entering the top three in market share was not due to a single technological advantage, but rather a localized partner system built three years in advance. Therefore, during the pre-IPO financing stage, they place greater emphasis on whether buyers can collaboratively build an industry ecosystem with them, including deep collaboration with upstream supply chains, AI empowerment, and end-user clinical needs, rather than simplifying cooperative relationships into mere capital investment.

From the gap-filling logic of three types of buyers to the implementation demands of two types of sellers, these perspectives collectively outline new trends in China’s ophthalmology M&A market: transactions are no longer merely capital operations, but a comprehensive consideration of capabilities, ecosystem, and long-term value.

Asset transactions in the ophthalmology industry have entered a phase where “methodology matters more than narratives.” Whether it involves cross-border acquisitions, domestic terminal M&A, or cross-regional business development and overseas commercialization, all successful cases exhibit the same structural patterns:The quality of a transaction is not determined by the terms themselves, but rather by the ability to conduct effective matching and assessment prior to the deal, and to translate paper agreements into executable integration, measurable clinical value, and sustainable commercial outcomes post-transaction.。

The initial challenges in cross-border acquisitions often stem from cultural differences. Zhang Zheng pointed out that while legal terms and valuation are important, what truly determines success or failure is cultural understanding, communication styles, and organizational integration capabilities. The smooth acquisition of He Eye in Japan was due to the founding team’s certain level of understanding of Japanese culture. Zhang Zheng emphasized: “Professional institutions can help fill gaps in contractual terms, but the tacit understanding between cultures and founders cannot be replaced.” Only by establishing long-term communication mechanisms before the transaction, respecting the other party’s management traditions, and building a “psychological contract” can integration avoid rapid disintegration due to ideological conflicts. Therefore,The most critical prerequisite for cross-border acquisitions is not negotiating terms, but establishing sustainable cultural interfaces and a foundation of trust.

If cross-border acquisitions test cultural competence, then domestic terminal M&A tests the closed-loop capability of “whether channels can feed back into products, and whether products can drive channel growth.” Zhao Chunsheng explained that Autek China’s M&A strategy does not pursue short-term performance, but rather focuses on controlling national optometry terminal resources, enabling synchronized growth of its product, service, and channel systems. Specifically, at the terminal level, the company is building a nationwide chain network of Autek Optometry and Eye Health stores, continuously expanding into third- and fourth-tier cities; at the product level, it introduces high-margin new products through mergers, acquisitions, and equity investments, forming a rolling growth model of “channel lock-in + product bundling.” Thus, it can be seen thatIndustrial synergy emphasizesResource integration and ecosystem expansion, rather than single transaction metrics.

In contrast, cross-border business development (BD) is an entirely different engineering discipline. Xia Wei deconstructs cross-border BD into three fundamental underlying threads:Regulatory Disparities, Cross-Border Data Flows, and Interest StructuresIn terms of R&D, Bokang Shiyun conducts global clinical trials in accordance with U.S. FDA standards, achieving mutual recognition of data between China and the United States to avoid redundant testing. In data management, it adopts a “localization first, cross-border transfer second” approach, implements tiered control over sensitive data, and pre-establishes data repatriation mechanisms through agreements to ensure compliant data flows. Regarding benefit distribution, it clearly defines the scope of rights and interests, while balancing incentives and risk control through tiered revenue-sharing and buyback clauses. This design maximizes value for the enterprise, partners, and investors, thereby enabling sustainable collaboration.

In the medical device sector, a consensus is emerging:Valuation is determined not by technology, but by the verifiability of commercialization.. Tupai Medical’s trajectory demonstrates that technological leadership is merely an “entry ticket.” Wang Yingqi points out that what truly drives valuation premiums in overseas markets is the ability to showcase orders, channel depth, and product iteration pace. By establishing local distributor networks years in advance, solidifying after-sales service systems, and achieving genuine market growth within a short period following CE certification, medical device companies can clearly articulate their long-term value to capital markets. In other words, the underlying logic of financing for medical device firms hinges not only on “how strong the technology is,” but also on “whether the commercial pathway is clear, the pace is controllable, and the product portfolio strategy is sustainable in the long run.”

In the field of innovative drugs, this emphasis on certainty and systematic design is amplified. Shen Wang pointed out,Innovative Drug Companies Must Present Verifiable Certainty to InvestorsWeimou Biologics adopts a development strategy of “one molecule covering multiple indications (single-molecule, multi-pipeline),” which significantly reduces marginal costs by sharing CMC, toxicology, and partial mechanisms, while allowing the success of a single indication to amplify the overall pipeline value. Furthermore, the “dual-pathway validation” strategy in China and the United States enables the validation of universal efficacy in China and the validation of innovative value and pricing power in the US, ensuring that the company advances steadily in high-risk sectors rather than relying on acquisition.

From cultural integration and the dual-wheel strategy of channels and products, to cross-border regulation, data systems, and commercial validation, all operations must be transformed into genuine asset value through institutionalized synergy. As a financial advisor, Kaicheng Capital has been responsible for the investment and M&A of dozens of ophthalmology projects, including TopEye Medical and Weimou Bio. From an investment banking perspective, Zou Guowen, founder of Kaicheng Capital, points out that the fundamental driving force behind enterprises engaging in investment, M&A, and business development (BD) lies inAchieving Optimal Resource Allocation and Value Maximization Through Cross-Role Collaboration and Arbitrage, thereby embarking on a growth path that integrates business operations with capital. This synergy involves not only economies of scale and cost optimization, but also horizontal and vertical mergers and acquisitions to increase market share, secure key resources, deploy upstream technologies, ensure supply chain security, and acquire core talent.

However, without institutionalized design, collaboration risks becoming merely formalistic. Zou Guowen emphasizes three key points: First, chart a clear integration path and formulate a detailed “100-Day Plan” to ensure complementary strengths between both parties; Second, promote deep cultural integration to genuinely unite both sides as “one family,” thereby avoiding ideological conflicts; Third, establish long-term incentive and binding mechanisms through transaction structure design to align interests and motivate the acquired party to continuously create value. It is this multidimensional synergy—spanning strategy, institutions, and execution—that enables ophthalmic enterprises to achieve sustainable growth in global business development (BD) and mergers and acquisitions (M&A).

Regarding the ophthalmic market over the next 1–3 years, panelists generally agree that only by integrating consolidation, business development (BD), and a long-term strategic mindset can companies steadily advance in a complex international environment and achieve true global competitiveness.

“The hyper-competition in the medical device industry has reached a stage where consolidation is imperative.” Zhang Zheng, who entered the field through the medical device sector, pointed out that the market ceiling for medical devices is limited, and companies must enhance their market share and competitiveness through horizontal integration and acquisitions. Although domestic competition is fierce, achieving economies of scale through centralized consolidation can enable more effective competition with international giants.

In the field of innovative drugs, Xia Wei proposed four evaluation dimensions based on corporate product pipelines and market potential: regulatory window periods, market payment inflection points, technical support, and market capacity. He pointed out that the anterior segment disease sector, such as pterygium, still has significant growth space, and business development (BD) and cross-border transactions are important ways to unlock the value of drug pipelines. Meanwhile, he cautioned stakeholders to pay attention to financing bottlenecks, pipeline spin-off strategies, and Pre-IPO opportunities, emphasizing that companies must precisely align their clinical data with commercial strategies to ensure the efficiency of investment and resource allocation.

Shen Wang emphasized that the integration of clinical practice and commercialization is key to the successful market launch of innovative products and the establishment of competitive advantage. He argued that innovative drugs or medical devices must effectively address unmet clinical needs and clearly define their differentiated advantages; otherwise, it will be difficult for them to break through in China’s highly competitive market. The success of business development (BD) relies not only on the capabilities of internal teams but also on leveraging experienced external BD professionals for managed services and resource matchmaking.

Zhao Chunsheng pointed out that investment logic and industrial logic must proceed in parallel. Valuation discrepancies in the capital market, whether involving listed companies acquiring unlisted ones or domestic and international valuation arbitrage, create opportunities for mergers and acquisitions (M&A) and business development (BD). However, true value realization depends on post-merger synergy, including cultural integration, management alignment, and strategic fit. Mr. Zhao noted that many transactions in the market remain superficial due to insufficient integration, emphasizing that only through effective post-merger integration to achieve complementary advantages can a win-win situation be driven for both innovation and capital.

Regarding the global expansion of medical devices, Wang Yingqi proposed a segmented approach. Investment in medical devices should not only focus on registration certificates and technical specifications but also delve into frontline clinical settings to observe the actual performance of products. Although the diagnostic equipment market is highly competitive, it holds significant potential for international expansion; there remains room for strategic positioning in the surgical equipment sector. He emphasized that by building an industrial ecosystem and integrating early- to mid-stage projects, upstream and downstream enterprises, and shareholder resources, sustained innovation momentum and a virtuous industry cycle can be achieved.

Looking ahead, the ophthalmology sector holds promising prospects. Driven by population aging and shifting visual habits, China’s ophthalmic industry is following a clear trajectory—characterized by internal consolidation of medical devices, business development (BD) for pharmaceuticals to expand overseas, and collaborative ecosystem growth among all stakeholders—toward a future marked by greater international competitiveness and innovative vitality.

Roundtable Topic: Breaking Through the Ten-Billion Barrier! Deep-Diving into the Logic and Investment Value of Radiopharmaceutical Deals!

Inviting key representatives from Guotong New Drug, Jinghe Biologics, Quark Medical, Cold Fir Capital, Yifeng Capital, and Xinghua Dingli to discuss new trends in radiopharmaceutical transactions!

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