LyncMed Files for IPO: Building an S2B2C Platform for Medical Device Export, Cutting Hospital Procurement Costs by 20% and Boosting Retailer Margins by 20%

In recent years, with the deepening of population aging, the development of inclusive healthcare, and the growing emphasis on health, global healthcare expenditure has continued to rise. According to Deloitte’s “2019 Global Health Care Outlook” report, the annual growth rate of global health care spending was 2.9% from 2013 to 2017, and is projected to reach 5.4% from 2018 to 2022, with global health care expenditure expected to hit $10.059 trillion (i.e., $1,005.9 billion) in 2022.

The rise in global healthcare spending has placed immense cost-containment pressure on patients, health insurance companies, payers, and hospitals, driving efforts to improve the efficiency of pharmaceutical and medical device procurement and lower purchase prices, thereby laying the foundation for the global flow of medical products.

Moreover, Chinese manufacturing was previously perceived as being limited to low-tech original equipment manufacturing (OEM). However, in recent years, bolstered by China’s growing national strength, “Made in China” has gradually gained global recognition, particularly in the realm of domestically produced medical devices. Notably, the maturation of big data, artificial intelligence, and internet technologies is empowering various sectors, significantly enhancing industrial efficiency within the medical device industry.

Wang Peng, founder of LyncMed, stated: “The continuous rise in global healthcare spending, the growing international recognition of Chinese-made medical devices, and the increasing maturity of big data and internet technologies have been the development trends in the global healthcare industry in recent years. These factors also motivated us to establish LyncMed.”We firmly believe that, driven by these trends, domestically produced medical devices can efficiently reach end-users in overseas markets, helping Chinese companies secure more international orders and significantly reducing procurement costs for overseas end-users.”

LyncMed, established in late 2015, is an internet-based enterprise dedicated to facilitating the global expansion of Chinese medical device manufacturers. By connecting domestic medical device producers with overseas end retailers, the company enhances supply chain efficiency and delivers cost-effective products to merchants, healthcare providers, and patients. Since its inception,LyncMed Medical’s sales revenue has exceeded RMB 100 million, with over 2,000 SKUs and more than 1,000 clients. Its business spans 66 countries and regions, and it has established overseas warehouses in Spain, Mexico, and Italy.。

LyncMed Medical’s core team is a multidisciplinary group. The company’s team combines expertise in medical consumables supply chain, internet technology, and cross-border sales, with strong capabilities in sales, supply chain management, and data science. This enables LyncMed Medical to effectively build an internet platform for the global expansion of medical devices.

LyncMed Medical’s founder, Wang Peng, possesses professional expertise in logistics management, marketing, and supply chain management, with years of experience in SAP implementation, factory closure and relocation, and global procurement of medical consumables. The rest of the team has extensive experience in supply chain procurement, global sales, and technology management.

LyncMed positions itself as an S2B2C platform for the global expansion of medical devices, connecting domestic manufacturers with end-users to deliver clear, specific, tangible, and quantifiable commercial value to stakeholders across the industry chain.

At its inception, the company chose to enter the market through a self-operated business model, with its internal team maintaining full control over supplier selection, quality control, regulatory registration, coordination of cross-border multimodal logistics, overseas local warehousing, international settlement, ground promotion, and IT system development, thereby ensuring that customers’ multidimensional needs were met and safeguarding the platform’s reputation.

From domestic medical device manufacturers to overseas last-mile delivery, LyncMed has achieved full-network operations and real-time data connectivity. Overseas users can place orders, track logistics, manage inventory, and synchronize with factories in real time through a one-stop platform. This empowers Chinese-branded medical devices to compete directly in local markets across Europe, the United States, and Belt and Road Initiative countries, delivering high-cost-performance medical devices to end-users more quickly, efficiently, and cost-effectively.

Considering that overseas end-user hospitals and clinics are relatively fragmented, and customer bases vary across different regions worldwide, medical device export platforms face excessively high costs and low efficiency in "last-mile delivery." Therefore, LyncMed has launchedCity Partner, we have selected a group of terminal retailers worldwide as city partners to handle “last-mile” delivery and services. Through these city partners and overseas warehouses, customers can receive their products within 24 hours after placing an order.

Wang Peng stated that, compared with traditional procurement models,Through the S2B2C model, the price of medical devices sold to overseas end-user hospitals has been reduced by more than 20%, while the profits of urban partners have increased by 20%., creating a win-win situation for all parties involved. It is reported that within just over a year of its establishment, the company’s monthly revenue grew from hundreds of thousands of yuan to tens of millions of yuan.

Additionally, Wang Peng noted that for medical device companies with annual sales ranging from RMB 30 million to RMB 100 million, expanding into overseas markets and enhancing brand awareness abroad is highly challenging, requiring substantial technological and financial reserves. He stated, “Rather than going it alone, a collective approach to international expansion is a more effective strategy.”

Therefore, LyncMed Medical has launched third-party services to provide manufacturers with a suite of solutions required for global expansion, including overseas warehousing and routine regulatory registration. These services aim to help Chinese medical device manufacturers increase their overseas order volumes and enhance brand visibility. According to Wang Peng, the company is currently providing third-party services to dozens of manufacturers.

After four years of development, LyncMed’s S2B2C business model has been thoroughly validated. Since its inception, the company has achieved cumulative sales exceeding RMB 100 million, offers more than 2,000 SKUs, serves over 1,000 clients, and operates in 66 countries and regions worldwide, with overseas warehouses established in Spain, Mexico, and Italy.

Wang Peng noted that over the past four years, LyncMed has achieved significant accomplishments and gained valuable insights. Through continuous refinement and accumulation of experience, Wang Peng has summarized four key areas that medical device companies expanding overseas should focus on.

Leverage big data technology to optimize inventory levels and determine pricing.“Inventory planning presents a significant challenge; unreasonable inventory settings can often prove fatal to a business.” Leveraging its extensive data assets and big data analytics, LyncMed Medical Health Technology Co., Ltd. analyzes data sources to assess country-specific demand for particular products and acceptable price points, thereby enabling rational inventory configuration and pricing determination.

Determine the appropriate country/region.Currently, LyncMed Medical primarily conducts its business in Belt and Road Initiative countries and the European region. Wang Peng noted that Belt and Road Initiative countries offer policy support, while the European market boasts substantial capacity and considerable profit margins. Furthermore, given the significant pressure on cost containment in Europe, there is a high level of acceptance for medical products with strong cost-performance ratios.

Select products appropriately.LyncMed’s product offerings primarily consist of surgical supplies. Surgical supplies are characterized by high consumption volume and a high repurchase rate, and China holds distinct advantages in their manufacturing. Notably, as most surgical supplies are single-use products, there is no need to establish overseas after-sales maintenance teams, making this sector an excellent entry point for startups.

Strike a balance between speed and stability by pacing development appropriately.Wang Peng stated, “The medical device export sector features rapid capital turnover; an excessive pursuit of rapid expansion carries a significant risk of capital chain rupture, while overly slow growth will result in a loss of competitive advantage.”

Wang Peng stated, “LyncMed Medical is expected to achieve full profitability in the second quarter of 2020.”

Wang Peng stated, “We hope to leverage the industrial internet to weave China’s manufacturing sector, overseas distributors, and overseas demand-side stakeholders into a unified network, enabling intelligent collaboration among all parties and meeting their needs online.”

In the future, LyncMed will expand into more countries and regions, such as Southeast Asia, Latin America, and Africa, while continuously diversifying its product portfolio to include large-scale medical devices and high-value consumables. Additionally, Wang Peng expressed optimism about the global expansion of Chinese pharmaceuticals. “China and India are the world’s largest exporters of active pharmaceutical ingredients (APIs). Overseas acceptance of Chinese pharmaceutical products is second only to that of medical devices, and Chinese-made antibiotics and generic drugs have already secured a certain market share in Africa.”