7th China IVD Industry and Investment Forum Successfully Concludes
On September 22, 2020, the “7th China IVD Industry Investment and M&A CEO Forum & Annual Conference of the IVD and Precision Medicine Industry and Investment Alliance,” hosted by CHC Medical Consulting and the IVD and Precision Medicine Industry and Investment Alliance, and co-organized by the Anting Health Medical Industry Cluster, concluded successfully at the Crowne Plaza Shanghai Anting.
At the conference venue, multinational corporations, industry leaders, research institutions, and top-tier investment firms gathered to discussIVD [Policy · Market · Technology · Capital] brainstorming session attracted nearly 300 IVD professionals to the grand event.
The opening ceremony of the forum featured welcoming remarks delivered jointly by Dr. Liu Daozhi, Conference Chair and Founding & Managing Partner of Shanlan Capital, and Mr. Xiang Ping, Mayor of Anting Town, Jiading District, Shanghai.
Conference Chair, Liu Daozhi, Founding and Managing Partner of Shanlan Capital
Conference Chair Dr. Liu Daozhi, Founding and Managing Partner of Shanlan Capital, shared his insights from an investor’s perspective. He believes that price is no longer the primary focus of investment; with the secondary and primary markets closely intertwined, and increasing consolidation and M&A activity among startups and large corporations, specialization has become the key competitive advantage for investors.
Xiang Ping, Mayor of Anting Town, Jiading District, Shanghai
Healthcare has become a vital component of China’s national strategic emerging industries and has entered a phase of rapid development. Mr. Xiang Ping, Mayor of Anting Town, summarized the industrial development in Anting as follows:“Currently, Anting’s healthcare and medical industry has taken shape, being incorporated into Shanghai’s ‘1+3+X’ in-depth pharmaceutical industry framework and the ‘5+X’ health service industrial parks. We hope that more experts and entrepreneurs will bring innovative concepts and achievements to Anting, helping to build its healthcare and medical sector into a premium demonstration zone for the Yangtze River Delta region and even across China.”
Huang Chengchao, General Manager of Anting Health Medical Industry Co., Ltd.
In his report, Mr. Huang Chengchao, General Manager of Anting Health and Medical Industry Co., Ltd., introduced the health and medical environment and atmosphere in Anting, and proposed three objectives:1. Continue to strengthen the proud automotive industry; 2. Drive the development of the medical and health industry; 3. Build a high-quality Anting.
AMAt 9:50, Zhu Yaoyi, Chairman of the In Vitro Diagnostics Branch of the China Medical Devices Industry Association, delivered the opening conference report titled [Latest Advances in the In Vitro Diagnostics Industry]. Following this, Wang Hualiang, Director of the Shanghai Clinical Laboratory Center, shared his insights on the topic [Challenges and Breakthroughs in Laboratory Testing Amidst the COVID-19 Pandemic], officially kicking off the conference.
Zhu Yaoyi, Chairman of the In Vitro Diagnostics Branch of the China Association for Medical Device Industry
Mr. Zhu delivered an insightful address from both data and policy perspectives. He concluded:“The IVD industry is currently thriving, with a global growth rate of 6%. China is experiencing the fastest development, and this strong growth trajectory is expected to continue over the next five years. The overall market valuation of the industry appears quite optimistic. Among all sectors, molecular diagnostics, immunodiagnostics, and POCT have consistently been the top three fastest-growing segments. In response to policy factors, we have also made appeals to the government to provide better opportunities for the entire industry.”
Wang Hualiang, Director of the Shanghai Clinical Laboratory Center
The COVID-19 pandemic in 2020 undoubtedly placed unprecedented pressure and challenges on clinical laboratory testing in China. Mr. Wang Hualiang, Director of the Shanghai Clinical Laboratory Center, summarized the strengths and weaknesses of China’s response to epidemic prevention and control. He believed that our success lay in social mobilization capabilities and mechanisms, but we lacked notable achievements in science and technology. In contrast, the advantages of VCBeat Research Institute lie in its clear objectives, feasible plans, and solid foundation.
MorningAt 10:30, the guest delivered two conference presentations and participated in an in-depth high-level interview on the topic of [Market Strategy: New Opportunities in a New Landscape].
Ms. Chen Chao, President of Shanghai Kehua Bio-engineering Co., Ltd., presented [Listing[IVD Industry M&A and Case Studies] Mr. Liu Fujun, CEO of WuXi Apptec Diagnostics (Shanghai), opened up new perspectives and ideas for the audience with his theme of “Accelerating Dimensional Upgrading, Co-creating the Future.”
Chen Chao, President of Shanghai Kehua Bio-engineering Co., Ltd.
Ms. Chen Chao, President of Shanghai Kehua Bio-engineering Co., Ltd., summarized three key points from the perspective of a corporate executive:1. Investment is a zero-to-one process; 2. The true starting point of an investment is when the equity change is officially completed, not when the contract is signed; 3. Where conditions permit, it is advisable to establish cooperation with the target company prior to investment as a business-first strategy, which can significantly enhance the success rate of the investment.
Liu Fujun, CEO of Shanghai WuXi Apptec Medical Testing
How to Break ThroughRegarding the Innovation Bottlenecks in the IVD Industry, Mr. Liu Shared His Insights from Two Perspectives.
First is integration. Mr. Liu believes that the original intention behind creating WuXi NextCODE was to integrate resources across different sectors and regions, with the hope of bringing new ideas and future breakthroughs to the industry.
Second is dimension elevation. Dimension elevation1. Cover the entire lifecycle of pharmaceuticals; 2. Elevate to provide an open empowerment platform for innovators. We hope WuXi Apptec’s open empowerment platform will foster win-win cooperation with the IVD industry.
The upcoming [High-End Interview: Frequent Industry Policy Releases—How to Uncover Investment Opportunities in Industrial Development?] features Dr. Liu Daozhi, Founding and Managing Partner of Shanlan Capital; Ms. Chen Lili, Chairwoman of Wuhan Mingde Bio-Technology Co., Ltd.; and Mr. Zhu Yaoyi, Chairman of the In Vitro Diagnostics Branch of the China Association for Medical Device Industry.
Mr. Chen and Mr. Zhu believe that policy exerts the greatest impact on the industry. Meanwhile, adhering to the development patterns of the overseas diagnostics industry, as well as the historical trajectory of other categories of Chinese medical devices, is generally well-received by investors from an innovation perspective for entrepreneurs. Achieving scale and strength in this regard also requires leveraging capital for mergers and acquisitions or relying on government initiatives to drive consolidation and growth.
From left to right: Liu Daozhi, Founding and Managing Partner of Shanlan Capital; Chen Lili, Chairman of Wuhan Mingde Bio-technology Co., Ltd.; Zhu Yaoyi, Chairman of the In Vitro Diagnostics Branch of the China Association for Medical Device Industry.
Afternoon [[How Can Companies Strategically Position Themselves During Their “Prime” Years?] This session featured Mr. Zhao Lijian, Chief Marketing Officer of BGI; Ms. Chen Chao, President of Shanghai Kehua Bio-engineering; Mr. Liu Fujun, CEO of WuXi Apptec Diagnostics; Mr. Zhu Jie, Partner at the Shanghai Office of Wilson Sonsini Goodrich & Rosati; and Mr. Wang Haijiao, Executive Partner at GTJA Capital.
Chen Chao, President of Shanghai Kehua Bio-Engineering, summarized that companies must cultivate both internal strengths and external competitiveness; Liu Fujun, CEO of WuXi Apptec’s diagnostic testing arm (WuXi Apptec Diagnostics), focused on three key areas:1. Construction of the entire platform; 2. Development and integration of data; 3. The essence of healthcare. Zhao Lijian, Chief Marketing Officer of BGI Genomics, believes that it is essential to maintain forward-looking scientific research layouts and possess independently controllable tools. Zhu Jie, Partner at Wilson Sonsini Goodrich & Rosati’s Shanghai office, offered a legal perspective, noting that although venture capital financing showed a downward trend in the second half of 2019, other sectors experienced growth, presenting significant opportunities for the IVD industry. Finally, Wang Haijiao, Executive Partner at GTJA Capital, summarized three key points: 1. Differentiated strategies should be adopted for different sectors; 2. The integration of technological innovation with clinical needs will undoubtedly become the primary breakthrough point for industrial development; 3. The in vitro diagnostics industry post-COVID-19 has also attracted considerable attention from the capital market.
From left to right: Wang Haijiao, Executive Partner at GTJA Investment; Zhao Lijian, Chief Marketing Officer at BGI Genomics; Chen Chao, President of Shanghai Kehua Bio-engineering Co., Ltd.; Liu Fujun, CEO of WuXi NextCODE Medical (Shanghai); and Zhu Jie, Partner at Wilson Sonsini Goodrich & Rosati’s Shanghai Office.
AfternoonAt 14:30, Mr. Wu Chao, Deputy General Manager of Zhejiang Baichen Medical Technology, delivered his conference report, providing a comprehensive analysis of [The Current Status and Future of the Clinical Mass Spectrometry Sector].
Wu Chao, Deputy General Manager of Zhejiang Baichen Medical Technology
Wu Chao, Deputy General Manager of Zhejiang Baichen Medical Technology, shared his report from three aspects:1. Is clinical mass spectrometry a viable market segment? 2. Current status. 3. Future outlook.
He believes that the market for mass spectrometry is vast, but the technology and platforms themselves have limitations. Looking to the future, the company has established a presence in three key areas: mass spectrometry platforms, product reagents, and service systems.
Mr. Wu concluded by stating, “Regardless of the industry, we are all transitioning from the traditional elevator model to the rock-climbing model. We must move forward and explore together; collaboration is undoubtedly the prevailing trend.”
Second Roundtable Forum: [How to Become a True Track[“King”] The discussion began at 14:50, featuring Mr. Wu Yifei, CSO of Shanghai Rendong Medicine; Mr. Cao Lin, General Manager of Nanjing Vazyme Biotech; Ms. Qin Jun, General Manager of Beijing Lianzhong Taike; Mr. Tan Hong, CEO of Starry Medical Technology (Suzhou) Co., Ltd.; Mr. Wang Jun, CEO of Hangzhou Jieyi Biotechnology; Mr. Bao Wei, Chairman of Guangzhou Yuanguji Technology; and Mr. Duan Yun, Executive Director of Shanlan Capital.
From left to right: Duan Yun, Executive Director of Shanlan Capital; Shanghai Rendong MedicalCSO Wu Yifei, General Manager of Nanjing Vazyme Biotech Cao Lin, General Manager of Beijing Lianzhong Taike Qin Jun, CEO of Starry Medical Technology (Suzhou) Co., Ltd. Tan Hong, CEO of Hangzhou Jieyi Biotechnology Wang Jun, Chairman of Guangzhou Yuanguji Technology Bao Wei
Hangzhou Jieyi BiotechnologyWang Jun, CEO, believes that clinical needs should be multidimensional, with an urgent demand for automation in clinical settings; Tan Hong, CEO of Singlera Genomics (Suzhou) Co., Ltd., feels that adhering to one’s core competencies is a fundamental principle; Cao Lin, General Manager of Nanjing Vazyme Biotech, points out that while there is great enthusiasm for raw materials, which are notoriously difficult to develop, one must be wary of potential pitfalls; Bao Wei, Chairman of Guangzhou Yuanguji Technology, views the integration of clinical applications and new technologies as a matter of both industrial and technological strategy; Wu Yifei, CSO of Shanghai Rendong Medicine, argues that “overtaking on a bend” cannot be oversimplified and must be achieved through dimensions such as quality and product excellence; Qin Jun, General Manager of Beijing Lianzhong Taike, shared three barriers to entry in chemiluminescence: 1. Technological barrier; 2. Capital barrier; 3. Decision-making barrier, emphasizing the need to pursue innovation and differentiation.
Afternoon15:50, Third Roundtable Discussion: [2020 IVD Industry Trend Forecast], featuring Mr. Wu Hao, Director of Strategy and Business Development, Asia Pacific, Roche Diagnostics; Mr. Zhang Jiangli, Co-founder and CEO, Genetron Health; Mr. Chen Caifu, Chief Technology Officer, IVD Division, 3D Medicines; Mr. Ni Bing, Managing Director, China Resources Capital; Ms. Li Jiangfeng, Managing Director, Fortune Capital; and Mr. Xu Jingbo, Senior Healthcare Practitioner.
From left to right: Wu Hao, Director of Strategy and Business Development, Roche Diagnostics Asia Pacific; Zhang Jiangli, Co-founder and CEO, Genetron Health; 3D MedicinesChen Caifu, Chief Technology Officer of IVD; Ni Bing, Managing Director of China Resources Capital; Li Jiangfeng, Managing Director of Chencai Zhi; and Xu Jingbo, Senior Medical Practitioner
Mr. Zhang Jiangli, Co-founder and CEO of Kunyuan Genomics, believes that this year isIn the boom year of the IVD industry, both product R&D quality and business development scale have reached or approached the levels of imported manufacturers, which is a very positive trend. Chen Caifu, Chief Technology Officer at 3D Medicines’ IVD division, summarized: “Currently, the most significant impact comes from the China-US trade war, while 3D Medicines’ vision is to enable every cancer patient to receive precise diagnosis as early as possible.” Li Jiangfeng, Managing Director at Fortune Capital, shared: “As the number of single-technology platforms increases, competition across the entire sector will become increasingly fierce. Which companies can evolve into platform-based enterprises is a key point of our focus.” Ni Bing, Managing Director at China Resources Capital, believes that the industry will next enter a major cycle of consolidation. Xu Jingbo, a senior healthcare practitioner, noted: “1. The rules of the in vitro diagnostics industry have changed; 2. Due to the impact of the pandemic, these changes are reflected in shifts in these two standards.” Wu Hao, Director of Strategy and Business Development for Roche Diagnostics Asia Pacific, concluded from the perspective of volume-based procurement: “For leading large enterprises, opportunities outweigh crises; whereas for smaller companies, relying on major platforms will be essential to secure a foothold for survival in the future.”
The final roundtable discussion at 16:40, titled [Molecular Diagnostics Forum: Evolution of Niche Industry Markets], featured insightful perspectives and presentations from Ms. Liu Ying, Partner at SoftBank China Capital; Ms. Lin Yani, Medical Director at Shenzhen Jiankang Medicine; Ms. Jiang Zhi, CEO of Jinshi Genomics; Mr. Chen Yiyou, Chief Scientist at New Horizon Health; and Mr. Zhang Long, Vice President of the Market Support Center at Singleron Biotechnologies.
From left to right: Liu Ying, Partner at SoftBank China Capital; Lin Yani, Medical Director at Shenzhen Jiankang Medicine; Jinshi GeneCEO Jiang Zhi, Chief Scientist of New Horizon Health Chen Yiyou, and Zhang Long, Vice President of the Market Support Center at Singleron Bio
Lin Yani, Medical Director at Shenzhen Jiankang Medicine, believes that the new aspects of molecular diagnostics primarily impact clinical applications; Jinshi GeneCEO Jiang Zhi is particularly optimistic about three areas: 1) automated equipment for integrated point-of-care testing (POCT) that covers the entire workflow from sample to result; 2) large-scale automated nucleic acid workstations, represented by Roche, for the development of nucleic acid testing products; and 3) integrated solutions similar to high-throughput sequencing. Chen Yiyou, Chief Scientist at New Horizon Health, leans toward the direction of early cancer screening. Zhang Long, Vice President of the Market Support Center at Singleron Biotechnologies, is bullish on emerging technologies and encourages investors to pay closer attention to them. Finally, Liu Ying, Partner at SoftBank China Capital, expressed high expectations: she believes that founding a company requires a 100% commitment of effort and must sustain continuous growth and prosperity.
At this conference, guests discussed ChinaDiverse perspectives were shared on the key themes of [Policy · Market · Technology · Capital] in the IVD industry. Face-to-face exchanges with IVD entrepreneurs, investors, and other stakeholders elicited rounds of applause and strong resonance from all attendees. With a forward-looking vision that provides direction and clarity, we look forward to a future where the IVD industry enjoys broader and more robust space for innovative development.