MedRhein Files for IPO: Enabling Chinese IVD Companies' Expansion into German-Speaking Markets with Full-Service Solutions
In early 2020, the COVID-19 pandemic erupted, and Chinese anti-pandemic products quickly gained prominence on the international stage, becoming a cornerstone in the fight against the epidemic in countries and regions such as the United States and the European Union.
Among the many overseas destinations for in vitro diagnostics (IVD) companies, the German-speaking region represents a vast market. Comprising Germany, Austria, parts of Switzerland, and northern Italy, this region wields considerable influence across Europe. In particular, Germany holds a leading position within the European Union and exerts strong influence in shaping numerous policies and standards.
Based on 2021 data regarding Chinese exports, the top three European destinations for China’s in vitro diagnostic (IVD) products were Germany, the United Kingdom, and Austria, with export values of $3.8 billion, $3.2 billion, and $700 million, respectively. The German-speaking region has become a popular market for Chinese IVD companies expanding overseas; at the MEDICA trade fair held in November 2022, more than 125 Chinese IVD companies traveled to Germany to exhibit.
MedRhein focuses on the German-speaking region and is a full-process service provider that empowers medical device companies to expand into this market through digital solutions. By leveraging data analytics, the company efficiently identifies market demands in the German-speaking region and assists domestic enterprises with product compliance, warehousing and logistics transportation, localized packaging, and market sales. To date, MedRhein has partnered with over 50 domestic IVD (In Vitro Diagnostics) companies.
Recently, VCBeat held a dialogue with Zhao Yong, CEO of Midea Yin, to explore how Chinese IVD companies can break through in global expansion and how Midea Yin has established critical overseas pathways spanning market access, distribution channels, and logistics.
Zhao Yong candidly stated, “After years of R&D and technological iteration, Chinese IVD companies have made significant progress in R&D innovation, product quality, product diversity, and supply chain capabilities, but they still lack sufficient capacity for global expansion.”Pain points in global expansion are evident across all aspects, including market access regulations, product portfolios, clinical trials, sales channels, localized packaging, and after-sales service.”
First, product category selection must align with differentiated overseas demand. Second, under the IVDR regulation, the threshold for EU CE certification has been raised, and policies governing clinical trial data collection, post-market surveillance, and market access for reimbursement are complex. Third, product localization faces multiple challenges, including establishing sales channels, providing local technical support services, and building market reputation, all of which require the support of a professional international team.
Of particular importance are cultural differences.For instance, Europe places a high premium on privacy; personal data must not be disclosed to any third party. Companies must prioritize privacy protection, or their brands will suffer significant negative repercussions. Furthermore, Europe is a multicultural society where Christian, Muslim, and other cultures coexist, requiring businesses to accommodate the characteristics of diverse cultural backgrounds.
It is understood that even leading domestic enterprises experience significant cultural and operational dissonance upon entering the European market. Meiyi Yin aims to help IVD companies address their weaknesses in global expansion.Currently, Meidi Yin has streamlined key processes including product market access, sales, and logistics. It has obtained laboratory accreditation, medical device distribution licenses, and special permits for logistics, transportation, and warehousing. With comprehensive qualifications spanning from laboratory services to the import, wholesale, and distribution of medical devices, Meidi Yin is well-positioned to facilitate the successful market entry of IVD companies in German-speaking regions.
Zhao Yong stated, “Following the outbreak of the COVID-19 pandemic in 2020, the German-speaking regions faced a severe shortage of epidemic prevention resources. As a major manufacturing power, China held significant advantages in the supply of anti-epidemic materials. At that time, numerous German clients contacted us, hoping we would introduce more Chinese anti-epidemic products to the German-speaking markets to meet the surging demand. Consequently, CTG, a local German trading company, seized this opportunity and established the new brand Meideyin in 2020.”
Meideyin Company is located in Hanover, the capital of Lower Saxony, Germany.
IVD companies cannot expect immediate results from international expansion; instead, long-term investment and accumulation are required to achieve substantial success. IVD enterprises and overseas service providers must establish deeply integrated partnerships based on mutual trust to jointly explore markets. Therefore, companies must exercise extreme caution when selecting overseas service providers.
CTG, the parent company of MedInn, was established in 1993 and is an expert in cross-border exports of medical products between China and Europe. Leveraging CTG’s decades of extensive experience in German-speaking regions and MedInn’s own strengths, it has rapidly established a comprehensive pathway for Chinese IVD enterprises to enter German-speaking markets.
ComplianceIn this regard, Meidiyin provides services such as European authorized representative, product registration representation, IVDR/clinical validation trial consulting, and medical insurance market access consulting;Sales ChannelsIn Germany, Medi-Inn covers more than 7,000 testing centers and pharmacies, has collaborative projects with six state governments, and serves approximately 100 educational institutions, around 200 elderly care centers, and about 120 hospital purchasing alliances. In the marketing and sales departments, over 80% of employees are local German staff.Professional ConfigurationMeideyin operates its own laboratories and employs a professional medical team, having accumulated extensive clinical resources. Its laboratory is situated within Medical Park Hannover, an experimental campus funded by the Lower Saxony state government, adjacent to the Hannover Medical School, and engages in collaborative partnerships with Swedish laboratories. Meideyin’s professional medical team includes numerous PhD holders who actively facilitate academic exchanges between manufacturers and Germany’s leading academic circles.
Product LocalizationIn this regard, Meidi Yin assists enterprises with localized VI design and multilingual translation, bridging cultural gaps to meet local market demands and comply with legal and regulatory requirements.LogisticsIn this regard, Meideyin is a partner of international logistics companies such as SF Germany and Hellmann, offering comprehensive international logistics solutions. Its services include China-Europe international logistics, intra-European logistics, German customs declaration and clearance, European warehousing, and drop-shipping. Meideyin’s subsidiary logistics and warehousing company holds full EU qualifications for logistics distribution, transportation, and warehousing, enabling it to provide logistics services directly. It is also equipped with professional warehousing facilities, infrastructure, and a warehouse management system, ensuring an end-to-end warehousing and logistics supply chain.Market PromotionAbove, the company provides comprehensive planning and promotion services to help enterprises rapidly establish their brands.
Rarely, Meinian Onehealth has also chosen to establish a local team of about twenty people in Zhangjiang Hi-Tech Park, Shanghai, China, to communicate deeply with Chinese enterprises and provide better services. Meanwhile, the company leverages China's digital advantages by setting up a software development team in China to build a digital platform, using digital technology for market information collection and analysis, logistics tracking, and more.
Midea Yin's Overseas Expansion Service Model
Since its establishment, Meidi Yin has developed rapidly and built a strong reputation.Has partnered with more than 50 Chinese IVD companies, including Beijing Wantai Biological Pharmacy Enterprise Co., Ltd., Guangzhou Pusilihua, Shenzhen Lushiyuan, Xiamen Anbang, and Guangzhou Daan Gene.Among them, Meidi Yin successfully facilitated the localization in Germany of Wantai BioPharm’s COVID-19 antigen test kits, HPV test kits, and other products. The companyWon the 2021 Best Distributor Award presented by Wantai Biological.
Data shows that in 2022, MGI sold over 400 million COVID-19 antigen test kits manufactured by Chinese companies in Germany, equivalent to an average consumption of five MGI-exported antigen tests per person. The company also sold more than 1,000 nucleic acid testing instruments and over 100,000 nucleic acid testing cartridges, capturing approximately 35% of the professional market share for rapid antigen tests in Germany.
In November 2022, Meiyin made its debut at Medica 2022, the International Trade Fair for Medical Devices in Düsseldorf, drawing significant attention from various parties. Pictured is Mr. Zhao Yong, CEO of Meiyin, being interviewed by German media.
The IVD market boasts strong long-term growth prospects. In recent years, the IVD market has been trending toward miniaturization of equipment, convenience in diagnostics, internet integration, and decentralization. Chinese companies have made particularly rapid progress in these emerging areas and are becoming a dynamic new force in the global IVD market.
The COVID-19 pandemic has opened a door, reshaping overseas stereotypes about Chinese brands and highlighting that China not only boasts substantial production capacity but also offers a wide range of high-quality in vitro diagnostic (IVD) products. This presents a once-in-a-lifetime opportunity.As globalization continues to advance, expanding into overseas markets will remain a long-term trend. Chinese enterprises should not merely serve as temporary suppliers of products during the pandemic but must evolve into internationally trusted brands worthy of long-term confidence.
It should be noted that as COVID-19 testing gradually subsides, overseas markets will impose higher quality and technical requirements on Chinese medical device products.Domestic enterprises need to build technical barriers, enrich their product portfolios, increase product added value, and accelerate product localization in response to market changes.
Zhao Yong stated, “The pandemic has significantly elevated global recognition of molecular diagnostics. Countries have established molecular testing infrastructure, and molecular diagnostics will be increasingly applied across diverse scenarios. Beyond COVID-19-related products, there are substantial opportunities in areas such as chronic diseases, infectious diseases, home-based testing, and pet testing.”
As a bridge connecting the German-speaking regions with China, Meiyin remains committed to removing obstacles for Chinese enterprises expanding into the German-speaking market, facilitating their establishment in the German-speaking regions and the EU market, enhancing the international influence of Chinese IVD companies, and introducing advanced European products to China. Moving forward, the company will continue to strengthen its team’s capabilities, seize new opportunities for global expansion, and help Chinese enterprises build brand advantages in Europe.