Where Are the Opportunities and Breakthroughs in Innovative Medical Devices? Insights from Peijia Medical CFO Cai Lie

On June 24, the 2020 International Medical Technology Innovation Virtual Summit, hosted by the People’s Government of Gaochun District, Nanjing City, co-organized by the Science and Technology Bureau of Gaochun District, Nanjing City, and VCBeat, and supported by the Jiangsu Provincial High-Tech Industrial Development Zone, concluded successfully. Meanwhile, preparations are in full swing for the second International Medical Device Innovation Summit, an offline event scheduled for July 28.

At the morning session of the Air Summit, we invited Mr. Cai Lie, CFO of Peijia Medical, to deliver an inspiring speech. VCBeat has compiled the guest’s remarks, and the following is a curated excerpt with some edits.

Topic: Opportunities and Breakthroughs in Innovative Medical Devices

Mr. Cai Lie’s presentation centered on technological innovation in medical devices, beginning with transcatheter heart valve interventions, and elaborated on the significant advantages of the domestic innovative medical device market as well as the challenges facing its development.

Peijia Medical CFO, Cai Lie

Mr. Cai Lie believes that innovation is a process requiring accumulation and gradual breakthrough, one that does not shift according to the will of individuals or enterprises. The source of innovation lies in patient needs. Today, the development of transcatheter aortic valve replacement (TAVR) is flourishing, and the aortic valve market holds immense potential for future growth. Innovation in medical devices cannot succeed without market support. Mr. Cai Lie noted that at present, the global market size for medical devices in this sector is approximately $4 billion, and it is projected to rise to around $7 billion within three to four years, representing a rapidly expanding and substantial market.

Currently, the market environment for innovative medical devices in China boasts significant advantages. These include a large population of elderly patients with both medical needs and payment capacity driven by aging trends; a landscape where domestic companies lead in the TAVR sector due to policy support; substantial growth potential given the low proportion of consumables in total healthcare expenditure; the foundational advantage of being a major manufacturing hub; mature technical capabilities among domestic enterprises; and sufficient financial support from capital markets for innovative medical devices. However, market development also faces challenges. As the path of innovation progresses, the required knowledge base and talent pool will continue to expand. Since innovation is a process of creating something from nothing, it demands a deep understanding of the industry and the ability to identify one’s own unique innovative strategies.

Meanwhile, innovation in medical devices is driven by clinical needs. Clinical demands have spurred advancements in surgical techniques, led to the emergence of surgical robots, and further promoted innovations in various interventional procedures and interventional devices. Interventional heart valve replacement is also influenced by clinical needs, with continuous efforts to enhance safety and durability.

Mr. Cai Lie believes that in the future, China will need and will certainly see the emergence of large multinational medical device companies.

Watch Summit Replay

In recent years, as a strategic emerging industry under key national support, the medical device sector has benefited from a series of policy initiatives—ranging from deepened review and approval reforms, innovation in high-value consumables, DRG (Diagnosis-Related Groups), and SPD (Supply, Processing, and Distribution) models, to medical consortia, tiered diagnosis and treatment systems, and the Marketing Authorization Holder (MAH) system for medical devices—resulting in rapid growth. Statistics show that China’s medical device market size reached RMB 628.5 billion in 2019 and is projected to exceed RMB 900 billion by 2022.

To further analyze the innovation and transformation of China’s medical device industry, gain insights into development trends, and promote the integration of industry and capital, the “2nd International Medical Device Innovation Summit,” hosted by the People’s Government of Gaochun District, organized by the Science and Technology Bureau of Gaochun District and VCBeat, and co-organized by Jiangsu Gaochun High-Tech Industrial Development Zone, will be held in Gaochun, Nanjing on July 28, 2020.

This conference will be held with2020 Medical Device Innovation Vitality Rankingthe release of as an opportunity, targetingGenetic Testing, In Vitro Diagnosticsand other trending topics, bringing together the most active medical device innovators, listed companies, financial institutions, and healthcare organizations from China and abroad to create a premier industry event for the medical device sector. Currently,Academician Yuan-Ting Zhang, Fellow of the International Academy of Medical and Biological Engineering, IEEE Fellow, and Fellow of the American Institute for Medical and Biological Engineering, has confirmed his attendance at this forum.。