Navigating Industry Trends and Investment Logic: The 9th China IVD Industry Investment & M&A CEO Forum Concludes Successfully

On December 15, 2022, the “9th China IVD Industry Investment and M&A CEO Forum & Annual Conference of the IVD and Precision Medicine Industry and Investment Alliance” (hereinafter referred to as the “IVD Alliance”), co-hosted by CHC Medical Consulting and the IVD and Precision Medicine Industry and Investment Alliance, was successfully held in Suzhou, Jiangsu Province.

"Special Period," Full House

The conference received strong support from the Taicang Municipal People’s Government, Taicang Pharma Valley, and Taicang BioPort. More than 200 guests from the IVD industry, investment firms, and research institutions gathered to discuss development trends in the IVD sector, share insights on investment logic in the IVD field, andIn-depth discussions on specialized sectors such as smart diagnostics, molecular diagnostics, high-end medical devices, and IVD raw materialsDr. Liu Daozhi, CEO of the IVD Alliance and Founding and Managing Partner of Shanlan Capital, and Hu Xubo, Chairman of the IVD Alliance and Managing Partner at Qiming Venture Partners, attended the opening ceremony and delivered remarks.

Dr. Liu Daozhi, Conference Chair, CEO of the IVD Alliance, and Founding and Managing Partner of Shanlan Capital, first extended sincere gratitude on behalf of the organizers to all attendees for their presence, and to the Taicang Municipal Government for its support of the conference. He noted that over the past year, amid a broader economic downturn and further contraction in capital availability, fundraising in the primary market has become extremely challenging, with many entrepreneurs feeling the “chill.”He emphasized that, in the period ahead, entrepreneurs must “break away from past mindsets,” avoiding an excessive focus on securing financing or raising more capital, and instead place greater emphasis on maintaining healthy cash flow, as “survival is paramount.”

Liu Daozhi, Conference Chair, CEO of the IVD Alliance, and Founding and Managing Partner of Shanlan Capital

Subsequently, from the perspective of investors,Liu DaozhiThe doctor then gave a presentation titled “Investment Opportunities in the In Vitro Diagnostics Industry” presentation at the conference. Through data analysis, he introduced the basic overview, market size, and development trends of China’s IVD industry. He believes that the IVD sector has been one of the fastest-growing areas within the healthcare industry over the past five years. However, under the new market normal, particularly with the initiation of centralized procurement for IVD products, companies should actively formulate response strategies, proactively expand overseas, and accelerate their layout in international markets. Meanwhile, he also provided a comprehensive analysis of the capital market situation in the IVD industry, believing that“Primary market investors are increasingly shifting their focus to early- and mid-stage ventures while becoming more sensitive to valuations.” “The secondary market is witnessing a proliferation of diverse sectors, with growing attention directed toward the upstream segment of the in vitro diagnostics (IVD) industry.”Subsequently, Dr. Liu Daozhi provided an in-depth analysis of the investment opportunities and underlying logic in key industry segments, including early cancer screening, life science instruments, point-of-care testing (POCT), mass spectrometry equipment and reagents, and the integration of in vitro diagnostics (IVD) with artificial intelligence (AI) technologies and data.

Conference Chair, Chairman of the IVD Alliance, Managing Partner at Qiming Venture PartnersHu XuboIn his opening remarks, Mr. Hu Xubo shared his personal insights on the development of the IVD industry under the new normal. Hu Xubo stated that China is one of the world’s two largest single markets, and its scale can nurture and support the growth of global corporations; he believes that many major innovations in the industry will originate in China in the future. Furthermore, having withstood the test of the pandemic, a number of enterprises have emerged as standouts, making significant progress in market responsiveness, internal operations, and overseas expansion capabilities. Finally, as we formally enter the post-pandemic era, entrepreneurship, innovation, and economic development will usher in a new phase, presenting favorable opportunities for future corporate growth. Hu Xubo believes thatWhether in investment or entrepreneurship, an optimistic mindset is essential. One must remain calm and observant, engage in deep reflection, and identify greater opportunities for industry innovation, especially when the general public is plagued by hesitation or confusion.

Hu Xubo, Conference Chair, Chairman of the IVD Alliance, Managing Partner at Qiming Venture Partners

Under the theme of “Opportunities and Challenges in the Current Development of the In Vitro Diagnostics Industry” in the conference report, Hu Xubo provided a comprehensive analysis of the current state of the IVD industry and technological development, covering market size, contributions to pandemic control, industry trends, future prospects, and technological iterations. Hu Xubo stated that the global IVD market is booming, with Chinese IVD companies experiencing rapid growth. He highlighted that future clinical and technological innovations, as well as automation, will emerge as new trends in the IVD industry, and Chinese enterprises are ready to compete on the same stage as international giants. Regarding the capital market, Hu Xubo believesIVD Sector: Secondary Market Valuations Hit Bottom, Earnings Growth to Drive Rebound; Primary Market Financing Deals and Amounts Both Decline This Year, with Large Rounds Shifting Earlier—Future Focus to Intensify on Clinical Applications and Core Technological Innovation. Going forward, accelerated domestic substitution, clinical innovation, and globalization will present key opportunities for the IVD industry.

Honorary Chairman of the IVD Alliance, Chairman of the In Vitro Diagnostics Branch of the China Medical Devices Industry AssociationZhu YaoyiMr., focusing on the development trends of the IVD industry, delivered a presentation titled “Discussion on the Development Trends of China's In Vitro Diagnostics Industry” conference report.

Honorary Chairman of the IVD Alliance, Chairman of the In Vitro Diagnostics Branch of the China Medical Devices Industry Association

By interpreting domestic and international IVD market data and sharing the latest macro-level policies, he analyzed the current development of the IVD industry and explored its future trends from the perspectives of national macro policies, local governments, market demand, the industry and enterprises, and product technologies. Zhu Yaoyi believes that while the IVD industry and its enterprises have reached a new level, competition is intensifying and differentiation is continually emerging, leaving substantial room for future innovation, original technologies, and products.

Honorary Chairman of the IVD Alliance, CEO of BGI GenomicsZhao LijianSir, focusing on the application and development of gene technology, delivered a presentation titled"Genetic Technology Empowers Healthcare"Conference Report.

Zhao Lijian, Honorary Chairman of the IVD Alliance and CEO of BGI Genomics

Zhao Lijian began by reviewing the Human Genome Project, stating that genomics technologies have driven rapid industrial development. With the fast advancement of sequencers, genomics is transitioning from the Human Genome Project to personal genomes for all individuals. He also provided a detailed overview of the applications and development of genetic testing in four key areas—reproductive health, cancer prevention and control, infectious disease prevention and control, and scientific services—as well as BGI’s product portfolio, emphasizing that whole-genome sequencing has accelerated the progress of precision medicine. Regarding the future development of genetic testing, Zhao Lijian believesThe implementation of the LDT model is conducive to the overall development of the industry. In the future, the lawful, compliant, and orderly adoption of the IVD+LDT model will accelerate the application of genetic testing in the field of precision medicine.From the perspective of technological development, spatiotemporal omics can be comprehensively applied to scientific research on major issues such as the origin of consciousness, the life cycle (birth, aging, sickness, and death), the growth of all living things, and the origin of life.

Dedicated to driving innovative development in the IVD industry through digital technologies; President-Elect of the IVD Alliance, and Chairman and CEO of WuXi Apptec DiagnosticsLiu FujunBrought by Dr.“The Future of Precision Medicine—Integrated Diagnosis Driven by the WINS Algorithm”Keynote Speech.

Liu Fujun, President-elect of the IVD Alliance; Chairman and CEO of WuXi Diagnostics

He began by posing a question: Starting with IBM Watson and Google Health, although the application of digital technologies such as artificial intelligence in diagnosis and treatment had an exciting beginning, why has their development and clinical adoption fallen short of expectations? Drawing on Mayo Clinic’s exploration focused on digital pathology, Dr. Liu Fujun presented WuXi Diagnostics’ development strategy—integrating multi-omics and clinical data to create an algorithm-driven integrated diagnostic system, and building a new ecosystem covering “diagnosis, treatment, pharmaceuticals, and insurance” with extensive coverage and full-cycle management. Subsequently, he introduced several internationally and domestically pioneering WINS digital diagnosis and treatment platforms developed by WuXi Diagnostics, and summarized“The ABCs of Future Medicine: ALGORITHM + BIG DATA + CLOUD” New Trend。

Focusing on the Future Development Direction of the IVD Industry, Vice Chairman of the IVD Alliance, Founder of Pinpeak MedicalDing WeiMr. delivered a ““Pioneering a New Era of Intelligent Laboratory Testing”conference report.

Ding Wei, Vice Chairman of the IVD Alliance, Founder of PinFeng Medical

Ding Wei first stated that China’s IVD growth rate has now surpassed the global average, making it the world’s second-largest market with substantial room for expansion. He emphasized that domestic IVD companies should evolve their positioning from “import substitution” to “import upgrading.”He believes that after the generational evolution from open reagents, to instrument-reagent closed systems, and then to biochemistry and immunoassay automation lines, smart laboratory testing—characterized by greater accuracy, faster turnaround times, higher efficiency, and lower costs—will become the new strategic high ground for the next generation of the IVD industry.Subsequently, Ding Wei highlighted PinFeng Medical’s smart laboratory solution—the Unattended Laboratory—built around products such as transport robots, assistant robots, smart screens, and cloud-based quality control. This solution offers advantages including extreme automation, integrated information management, and clinical decision support.

The afternoon session continued with exciting presentations, beginning with the Deputy General Manager of Beichao MedicalGao JianSir, done.“Common Issues and Preventive Measures in Clinical Trial Monitoring of Medical Devices”theme sharing.

Gao Jian, Deputy General Manager of Beichao Medical (Video Sharing)

Drawing from his practical work experience, he elaborated on and listed more than 40 common issues encountered during clinical trials of medical devices, covering aspects such as investigational devices, laboratory tests, and informed consent. He provided in-depth explanations through selected case studies. He cautioned that many issues arising in clinical trials may stem from inadequate preliminary training.When conducting clinical trials for medical devices, enterprises must pay close attention to details, fulfill all necessary requirements, and never be negligent.

Biopharmaceutical Division, Taicang Investment Promotion BureauHe JiacanMa'am, underwent“Taicang Biopharmaceutical Industry Promotion”. The healthcare industry is a strategic emerging industry that Taicang prioritizes for development. In recent years, Taicang has implemented a series of concrete measures, including establishing industrial guidance funds, providing rewards for R&D innovation, project investment incentives, enterprise innovation awards, and talent support programs.Continuously strengthen the “gravitational pull” of industry leaders, unlock the “potential” for industrial development, and foster the “synergy” of industrial clustering to accelerate the high-quality development of the healthcare industry.

He Jiacan, Biopharmaceutical Division, Taicang Investment Promotion Bureau

During the presentation, He Jiacan introduced Taicang’s fundamental advantages in terms of geographic location and transportation convenience. He provided an overview of the development of Taicang’s biopharmaceutical industry, covering its historical evolution, industrial layout, and specialized sectors. Furthermore, he detailed Taicang’s biopharmaceutical ecosystem, highlighting talent resources, educational and medical support infrastructure, R&D capabilities, and the industrial supply chain. Special emphasis was placed on the subsidies and preferential policies available to enterprises establishing operations in Taicang, with a warm invitation for more companies to settle in the city.

New Growth Mindsets for Molecular Diagnostics Companies in the Next Five Years

Moderator:Liu Haoran: Executive Director of Ruikai Group and Head of China Region

Guest Speakers:Wu Hao, Executive Vice Chairman of the IVD Alliance, Senior Director of Business Development, China, at Werfen Group; Zhang Yong, Executive Director of the IVD Alliance, Co-founder and Chief Scientist at Yuanguji; Xu Guowei, Director of the IVD Alliance, CEO of FanYin Medicine

Liu Haoran:With the normalization of pandemic control measures, China's molecular diagnostics market is ushering in unprecedented development opportunities. Meanwhile, public awareness of molecular diagnostics and capital market interest in this sector have both significantly increased.

Wu Hao:Every product has the potential to become a blockbuster. In the market, we often see that some products with low technological content sell well, while others with imaginative technology receive critical acclaim but fail to achieve strong sales. The key difference lies in whether they truly address clinical needs.

Zhang Yong:Future blockbuster products in molecular diagnostics are likely to emerge in three areas: first, rapid diagnostic tests, which address an urgent clinical need; second, precision medication, particularly in the current context of ongoing healthcare insurance cost containment and the advancement of precision medicine; and third, comprehensive solutions for remote diagnosis and testing services, spurred by the COVID-19 pandemic.

Xu Guowei:For IVD companies, our primary customers are hospital physicians. Our foremost priority is to address their practical clinical challenges, while gaining recognition in terms of cost-effectiveness, accuracy, and assay menu breadth.

Innovative Development of High-End Equipment in Life Sciences

Moderator:Gu Shenghan, Executive Director of Shanlan Capital

Dialogue Guests:Wu Hongxiang, Vice Chairman of the IVD Alliance, Deputy General Manager and Board Secretary of Dakewei Bio; Pan Song, Director of the IVD Alliance, Founding Partner of Qikuo Capital; Chen Jing, General Manager of Hanguang Micro-Nano; Du Lin, Deputy General Manager of Maidike

Gu Shenghan:Life science equipment serves as the foundation for life science research, clinical diagnosis and treatment, many natural science studies, and even industrial production. In a relatively volatile market environment, it represents a niche sector with considerable certainty, characterized by clear downstream demand and the ability to generate stable cash flows.

Wu Hongxiang:In the past two years, there has been widespread discussion about “chokepoint” technologies and import substitution, indicating that China’s in vitro diagnostics (IVD) industry has reached a turning point. First, the surge in market demand has led to a sharp increase in the need for raw materials and components, making cost a primary constraint. Second, foreign supply chains are struggling to meet our market demands in terms of both lead time and volume.

Pan Song:When selecting investment targets in the life sciences equipment sector, three key factors should be considered. First, assess the “ceiling” height, ensuring a sufficiently large market demand scale. Second, evaluate the technology, prioritizing solutions that align with current domestic substitution needs or feature proprietary innovations. Third, examine cost-effectiveness; historically, Chinese manufacturers have tended to commoditize virtually any industry they enter.

Chen Jing:Regarding our diversified layout, our strategy is straightforward: to effectively serve leading clients in niche industries. Whether considering the market potential for domestic products or future overseas expansion, the key lies in leveraging our cognitive insights, manufacturing capabilities, and supply chain strengths to carefully select our target customers and deliver superior service to industry leaders in specialized segments.

Du Lin:Future challenges primarily revolve around talent. China’s automation sector, particularly in medical automation, has long been monopolized by foreign manufacturers; breaking this dominance requires attracting more top-tier talent. The second challenge is internationalization. The global market offers a broader stage, and after stabilizing our position in the domestic market, we must expand into international markets.

From Niche to Mainstream: The Major Boom in IVD Raw Materials

Moderator:Li Wengang, Executive Director of the IVD Alliance, Managing Director of Yunfeng Capital

Dialogue Guests:Wu Yifei, Executive Director of the IVD Alliance, Founder and Chairman of Yinjia Biotechnology; Lin Yuan, Senior Vice President of Weidu Biotechnology

Li Wengang:In terms of value chain transmission, the market faced by downstream reagent companies is inevitably larger than that faced by raw material suppliers. To succeed in the raw materials sector, it is essential to understand customers’ needs; we cannot limit our focus solely to the raw materials themselves but must also be aware of customers’ detection methods, ensuring that our raw materials are compatible with all such methodologies.

Wu Yifei:Over the next 5–10 years, there will be significant opportunities in the market for diagnostic raw materials. Due to the impact of the pandemic and the international environment, foreign suppliers have faced challenges with lead times and supply chain stability. As a result, many companies that previously relied on imported products are now seeking domestic alternatives, presenting an excellent opportunity for us to develop and supply high-end raw materials.

Lin Yuan:As a raw material supplier, we are eager to engage more extensively with downstream partners, initiating dialogue during product development to better understand customer needs and address their pain points. When developing new products or acquiring new customers, the earlier we can get involved—ideally from the project initiation stage—the better it is for us.

Post-Pandemic Era: Corporate Industrialization and Growth Mindset

Moderator:Liu Ying, Vice Chairman of the IVD Alliance; Partner at SoftBank China Capital

Guest Speakers:Hong Tan, Director of the IVD Alliance, Founder and CEO of Starlight Medical; Xiaohua Huang, Director of the IVD Alliance, Vice President of Supply Chain at Hybio; Jian Cao, Director of the IVD Alliance, Founding Partner of Shiyu Capital

Liu Ying:In the post-pandemic era, while adjusting our own top-level investment strategies, we must also consider what types of enterprises we should invest in. High and new technology has always been our top priority. Secondly, we have come to deeply appreciate the importance of the team, particularly its agility in responding to the pandemic, as well as its overall adaptability and resource allocation capabilities.

Tan Hong:COVID-19 was merely a hiccup in the development process, albeit a significant one, and the industry will ultimately return to its original trajectory. Therefore, the future IVD market in China will undergo a period of consolidation. As many enterprises face a new market landscape along with evolving regulations and policies, their operations are likely to become increasingly challenging.

Huang Xiaohua:It is precisely due to the COVID-19 pandemic that diagnostic knowledge has begun to gain widespread popularity among the general public. We have profoundly observed that our customers are becoming increasingly professional; this includes clinicians, as well as end-user patients who, influenced by public health education, have started to pay attention to metrics such as sensitivity and specificity. This underscores the significant value of science popularization and health education.

Cao Jian:I have been engaged in healthcare investment for 18 years, and I have become increasingly reluctant to discuss macroeconomic trends, shifting my focus instead to micro-level analysis. While China’s economy is indeed large and growing rapidly, there are significant disparities across different industries. Each time we enter a new sector, we must adapt our investment logic to identify the specific opportunities within that industry.

Technological Innovation: Single-Molecule and Single-Cell Approaches Accelerate Precision Medicine

Moderator:Duan Yun, Executive Director at Shanlan Capital

Guest Speaker:Ma Hanbin, Founder and CEO of Aosu Technology; Zhang Long, Senior Vice President of Singleron

Duan Yun:As an investor, I remain particularly focused on innovation, and open platforms represent a strong business model. The fields of single-cell and single-molecule technologies constitute a vast blue ocean, not only for development within China but also for the future growth of the global industry.

Ma Hanbin:Our platform features two key capabilities: 1) the ability to sort and precisely manipulate trace samples; and 2) the integration of more complex methodologies and workflows. In our view, all life science tools—from the earliest biological microscopes to nuclear magnetic resonance (NMR) and mass spectrometry—serve scientific research. Therefore, we aim to start with technology R&D and gradually expand into in vitro diagnostics (IVD) and business development, while also making greater efforts in system integration.

Zhang Long:Single-cell sequencing has emerged as a highly prominent field in recent years, with numerous companies entering the market from diverse sectors, thereby intensifying competition among enterprises. This is a positive development, driving us to enhance the robustness and thoroughness of our products, from technological development to commercial translation. Looking ahead, both single-cell and single-molecule technologies are poised to become routine, widely adopted tools across the diagnostic landscape.

Following a day of insights sharing and interactive exchanges, attendees from the IVD industry expressed greater confidence and hope for the future of the sector, committing to jointly support and drive its robust growth.

Finally, we extend our heartfelt gratitude to the leaders and industry colleagues who have consistently supported and followed the development of China’s IVD industry but were unable to attend this forum for various reasons. We look forward to reuniting next year to discuss innovation together.