China's Medical Innovation Goes Global: New Opportunities in the Evolving Landscape of International Expansion [International Day of Cooperatives]
In 1992, the United Nations General Assembly adopted a resolution,Proclaimed the first Saturday of July 1995 as United Nations International Day of Cooperatives, and decided to designate this day annually asUnited Nations International Day of CooperationAmidst the global wave of new healthcare infrastructure development, economic globalization represents the trend of our times, and “going global” is a product of this era. Since the Belt and Road Initiative was proposed in 2013, the vessel of economic cooperation between China and participating countries has set sail. The term “going global,” imbued with a spirit of adventure and endless possibilities, has frequently entered the public spotlight. In the past two years, it has become a critical step in the strategic planning of numerous enterprises, as Chinese companies begin to expand abroad and deeply integrate into the global economic system.
In recent years, China's healthcare and pharmaceutical industry has flourished, with significant progress made in the innovation and application of medical technologies.Why Is Going Global Shifting from an “Optional” to a “Mandatory” Choice for Chinese Enterprises?
Intensifying Competitive Pressure and Shrinking Profit Margins in the Domestic Market
The “double involution” storm of pricing and products has swept across all Chinese pharmaceutical companies, with the prices of Chinese medical devices plunging by 66.1% following volume-based procurement. Identifying new revenue growth points has become the latest shared objective for the industry. In this context, global expansion has emerged as the go-to “painkiller.”
International Market Demand and Growth Potential
Healthcare expenditure in developed countries such as those in Europe and the United States far exceeds that in China. Robust demand for new drugs and innovative medical devices, coupled with broader international market needs and new growth opportunities, provides Chinese healthcare companies with an excellent opportunity for “international expansion.”
Brand Building and Internationalization Strategy
“From Local to Global”: Going global is an inevitable path for Chinese brands to scale up and strengthen. Showcasing the strength of Chinese products and the quality of their services in international markets serves as a powerful channel for building a robust brand image and enhancing competitiveness in the global marketplace.
Technological Innovation and Industrial Upgrading
With enhanced product competitiveness, many companies have largely fulfilled their mission of domestic substitution, bolstering their independent innovation and R&D capabilities; expanding overseas has thus become the natural next step.
In recent years, “Intelligent Manufacturing in China” has been developing at a rapid pace, with a continuous emergence of innovative medical products and technologies driving the vigorous growth of the healthcare industry. The global expansion of Chinese medical innovation is now in full swing! Data shows that in 2023, there were nearly 70 license-out deals for innovative drugs in China, with the total disclosed transaction value exceeding USD 35 billion, hitting a record high. The medical device sector is no less impressive: according to statistics, the overseas revenue of A-share listed medical device companies in China surged from RMB 25.7 billion in 2018 to RMB 108.1 billion in 2022, representing a compound annual growth rate (CAGR) of 43.2%.
This May, VCBeat held an event in Beijing.2024 VBEF Future Medicine and Healthcare Ecosystem ExpoThis edition of VBEF engaged partners from more than ten countries at the national level, spanning regions including Europe, North America, Australia, the Middle East, and Southeast Asia. It featured dedicated exhibition zones and hosted a series of forums, such as the “Special Matchmaking Session for Expanding into Indonesia” and the “Medical Device Global Expansion Forum & Global Selection Fair for Innovative Medical Products.” Furthermore, in advancing international expansion cooperation, Australia, Ireland, Singapore, the United Kingdom, Germany, and Catalonia (Spain) all showcased their respective overseas expansion services and support policies.
In 2024, VCBeat Will Officially Launch the China Healthcare Global Expansion Practice Camp, we will conduct an immersive overseas study tour and on-the-ground consulting session for medical enterprises with unique, innovative healthcare products that are interested in expanding their markets. The Overseas Practice Camp will travel toSouth Korea, Indonesia, Russia, Brazil, Japanand other overseas markets, providing one-stop solutions to address the pain points of market entry and effectively helping a wide range of medical enterprises match with corresponding resources.
!! South KoreaGlobal Expansion Practice Camp！！
Time: August 26-30, 2024
Partner: VentureBlick
Key Highlights:
Engage in substantive business matchmaking with South Korean buyers to access the latest commercial opportunities
Special Session on Medical Market Access Consulting in South KoreawithVB Connect Themed Event, companies can showcase and connect with high-quality potential partners for corporate display and engagement (Engaging with large distributors, South Korean companies, and multinational medical corporations, etc., supporting group or one-on-one conversations).
Industry-Scarce ResourcesGather Together, Gain Insights into the South Korean Market
VCBeatWe have invited distinguished experts and senior executives from regulatory bodies, benchmark hospitals, medical specialists, industry thought leaders, and major local partners in South Korea, thereby integrating scarce industry resources.
In-Depth Visits and Expert Dialogues: Broadening HorizonsOutlook
Site VisitKorea Medical Device Industry Association (KMDIA), Seoul National University, Kyung Hee Medical Center, and the medical technology innovation hub Seoul BioHub (or large South Korean medical companies such as IW)，Discussing Trends and Opportunities in South Korea’s Healthcare Sector with KMDIA, andHospital representatives in charge of external partnerships, procurement department heads, or experts in relevant fields will share case studies and engage in discussions for mutual learning.
!! Indonesia Market Entry Practice Camp !!
Date: August 18–23, 2024
Key Highlights:
Partner: VentureBlick
Clear Interpretation of Global Expansion Pathways and Strategies: Building a Bridge from Market Entry to Partnership
Category 3: Hospital Visits andProcurement Pathways and StrategiesClosed-Door Meeting
Session 2: Medical Device Sales in IndonesiaPolicy and Regulatory Analysis & Marketing StrategiesClosed-Door Meeting
1 company: locally produced in IndonesiaCorporate/Campus VisitsSymposium
Demand-driven,Comprehensive On-the-Ground Access to Overseas Expansion Resources
Government Departments and Official Organizations:Indonesian Ministry of Health officials;
Relevant persons in charge of Class A, B, and C public/private hospitals:Hospital presidents/heads of external cooperation and heads of procurement departments/relevant department experts from Herminal Group, Siloam Group, RSUD Karawang, Marinir Clianda, Rawa Lumbu, Kartika Kasih, and other hospitals;
Indonesian Enterprises and Professional Global Expansion Strategy Firms:Indonesian industrial parks and enterprises, local distributors, Lumina Procare Meditech.
Clarify the strategy for global expansion,In-Depth Analysis of the Indonesian Market
AnalysisProduct Category Requirements and Procurement Processes for Public, Private, and Community Hospitals,InterpretationKey Compliance Issues for Chinese Enterprises Expanding into Indonesia,DiscussionDemand and Business Models for Chinese Brands in the Indonesian Market,ShareGuide and Best Practices for Chinese Enterprises Investing in and Establishing Manufacturing Facilities in Indonesia; Processes and Characteristics of the Licensed Sales System.
Faced with the imperative of “going global,” Chinese healthcare enterprises must continue to evolve and present a new identity to the vast overseas markets!
If you are interested in expanding overseas,Welcome to add the VBEF Global Expansion Pitfall Avoidance Guide Resource Exchange and Liaison Consultant, obtain relevant materials to learn more about the latest insights on global expansion!
VCBeat looks forward to exploring the unknown with you and riding the waves!
