Qiming Venture Partners in Dialogue with Venus MedTech: Accelerating Globalization of Innovative Medical Devices through Glocalization Strategy

Recently, the Qiming Venture Partners CEO Cloud Summit was successfully held. During the “Dialogue with CEOs” session,Zhang Ao, Executive Director of Qiming Venture PartnerswithZi Zhenjun, General Manager and Executive Director of Venus MedtechExpanded the dialogue to share Venus Medtech’s global strategy.

VCBeat has compiled the relevant content, hoping to offer some assistance to those who are about to or are currently expanding into overseas markets.

Zhang Ao:China’s heart valve sector is still in its early nascent stage. How does Venus Medtech balance its resource allocation between the domestic and international markets at this stage? Moreover, why have you resolutely pursued simultaneous international expansion and resource investment at this early juncture, undertaking many globalization initiatives that outpace your competitors?

Zi Zhenjun:This is closely tied to my personal professional background. Over the course of more than two decades in China, I have consistently focused on developing products that make me better. We followed U.S. companies and their products, drawing on their successful experiences in technology and commercial promotion, to create domestically produced alternatives and launch them first in the Chinese market. However, I believe it is now time for some Chinese companies to take the lead.

Currently, Venus Medtech has secured nearly 900 patents, all of which have an international background and possess a certain level of technological advancement. European and American companies, especially U.S. firms, have already established extensive patent portfolios in the fields of coronary artery disease, congenital heart disease, and peripheral vascular disease, making it difficult for latecomers to achieve breakthrough progress. However, in the field of structural heart disease, I was among the early practitioners, and we entered the valve sector relatively early, so the gap is not significant. After years of dedicated efforts, we have finally brought these technologies to the international market.

Both the domestic and international markets are equally important to us. We are currently pursuing a dual-track clinical research strategy, as exemplified by the approval of Venus Medtech’s VenusP-Valve™, which has provided us with significant encouragement and confidence. We leveraged our European CE Mark data to seek approval from China’s National Medical Products Administration (NMPA)—an unprecedented move that also reflects the NMPA’s open stance toward accepting international data for regulatory submissions in China.

Next, we will leverage clinical data obtained internationally to facilitate applications for additional innovative regulatory pathways. This strategy is based on three key rationales: first, endorsement by international physicians; second, robust intellectual property rights; and third, the positive impact on the development of China’s medical device industry. Previously, it was assumed that Chinese products must be launched in China first. However, why can’t Chinese medical devices be launched in Europe or the United States first?

Zhang Ao:You recently mentioned international localization in your WeChat Moments, which may differ from the overseas expansion strategies considered by most companies. This also reflects the uniqueness of Venus Medtech’s specific implementation strategy for internationalization. So, what advantages does Venus Medtech have in the concrete execution of its internationalization efforts?

Zi Zhenjun:From both subjective and objective perspectives, we must adopt glocalization to develop our overseas strategy.

Objectively, the pandemic restricted international travel. Given this constraint, along with our established collaboration between our international front-end R&D team and overseas physicians, as well as the approval of our existing products abroad, building a locally adapted international team became an inevitable choice. During the recently concluded London Heart Valve Conference, Venus Medtech’s booth was staffed entirely by European physicians and our international team, engaging with customers and promoting our solutions. I believe this is a highly natural and effective approach to gaining entry into the forefront of the market.

Subjectively, we are also willing to build an international team. Our team has a high level of awareness regarding Venus Medtech’s international brand. From the London Heart Valve Conference to the Israel International Cardiovascular Innovation Conference, it is evident that establishing an international brand has had a significant positive impact on our team’s work.

Venus Medtech has collaborated with international physicians to co-develop numerous technologies. In clinical studies, these physicians proactively highlight our developed devices, rather than the company merely narrating the story of a Chinese medical device manufacturer. I believe this concept has been deeply ingrained in our team and has yielded significant benefits for us.

Here is a compelling example. In fact, no small number of Chinese medical device companies have obtained CE approval in Europe, yet very few have managed to penetrate core markets or be recognized as significant international competitors. This is precisely because they have not adopted a mindset of international localization. Therefore, we remain committed to implementing an international localization strategy, from which we have indeed reaped substantial benefits, enabling rapid expansion in Europe, Latin America, and other regions.

In the future, we will take further steps by considering the establishment of international operational centers. Given that market policies vary across regions—for instance, Brazil and India are both large and unique markets with a strong sense of national pride and self-esteem—Chinese medical devices seeking to enter these local markets need to identify ideal channels for market entry. Therefore, we may build operational centers globally to facilitate product penetration into diverse markets through more internationally localized brands.

Zhang Ao:I have observed that Venus Medtech’s internationalization strategy primarily follows two paths: one is the overseas expansion of its own products, and the other is actively seeking external technological collaborations or mergers and acquisitions. In particular, the company leverages DeNao Medical’s local incubator in Israel to source new technologies. Do you consider this approach a key focus of Venus Medtech’s future internationalization strategy?

Zi Zhenjun:Yes. First, Venus Medtech is solidifying its foundation by firmly establishing structural heart disease therapy as its cornerstone. In the critically important valve sector, Johnson & Johnson acquired cardiac device manufacturer Abiomed for $16.6 billion. In fact, J&J had initially intended to acquire Edwards Lifesciences, but the acquisition price would have been approximately six times higher, ultimately causing the deal to fall through. Therefore, in light of the significant market expansion currently seen in the cardiovascular valve segment, we are committed to strengthening this cornerstone. Beyond the aortic valve, markets such as the mitral and tricuspid valves offer substantial opportunities that can enable a company to rise rapidly.

Our first step is to become the "Edwards of China," laying this cornerstone before leveraging technologies incubated by investment institutions or Denovo Medical to expand outward and establish an international overseas platform. Taking Medtronic’s growth trajectory as an example, its core foundational business is Cardiac Rhythm Management (CRM), a field in which Medtronic remains the undisputed leader to this day. Accordingly, our strategy is equally clear: the first step in Venus Medtech’s development is to solidify our foundational technologies in the fields of heart valves and structural heart disease, before gradually expanding to grow into an international enterprise.

Zhang Ao:"In the early stages of expanding overseas, Chinese medical device companies did not enter the most core markets; instead, they largely competed on cost and price. However, cost and price may no longer hold such a dominant position today. When competing with Edwards or Medtronic in the U.S. and European markets, what do you consider to be Venus Medtech’s most distinctive advantages?"

Zi Zhenjun:Take the global expansion of our VenusP-Valve™ as an example. Since the approval of VenusP-Valve™, we have priced it on par with American products in Europe and the United States. Yet, no hospitals, physicians, or distributors have raised any objections to our pricing. By addressing critical clinical pain points, we have gained significant confidence, demonstrating that Chinese-made products can indeed command prices comparable to those of American counterparts. We have built brand recognition through innovative technology. Consequently, when introducing new products to the market, there is no expectation for us to offer them at lower prices.

An Indian company offers valve products at just $3,000, compared to Edwards’ $20,000 price tag. While this may be a relatively effective strategy for domestic companies, it appears less viable in many other countries, particularly in Europe and the United States, where patent issues must also be addressed. Therefore, having reached the forefront of innovation, we must ensure our innovations are of the highest quality. Our partner, Dejin Medical, has developed the DragonFly™, a transfemoral edge-to-edge mitral valve repair system, which has already attracted requests from European and American physicians to initiate related clinical studies.

China is not short of innovative medical device companies with localized products; what is scarce are medical device suppliers truly capable of establishing a global footprint and competing on the international stage. Venus Medtech aspires to become the “Huawei” of China’s medical device sector by expanding globally.

We initially planned to launch in the Chinese market first, followed by the European and American markets. However, to concentrate our resources, we ultimately opted for a simultaneous global launch, representing a significant strategic shift. Our ultimate goal is to leverage all available resources to promote a single product under one unified standard, thereby truly establishing the organizational structure of an international company.

I am confident that Venus Medtech will continue to achieve favorable outcomes in the future, as we have already observed demand in international markets. If a company collaborates with experts on research for a specific product, the endorsement from international physicians will command greater respect. However, if only CE certification studies are completed, experts may be reluctant to lend their reputation to endorse the company, as such work is perceived to lack technical depth. By fully implementing international innovation and pursuing parallel development strategies in both domestic and overseas markets, we can avoid redundant expenditure of financial resources and effort.

Zhang Ao:Thank you, Mr. Zi, for your time and insights. Whether it’s Venus Medtech or the broader trend of Chinese innovative medical devices going global, I believe everyone is more confident about the future.