Successful Holding of Northern Light Ventures' Healthcare Industry Global Expansion Seminar

Recently, the Aurora Venture Capital Healthcare Industry Global Expansion Seminar was held in Shanghai.With the goal of mutual development and progress, Northern Light Venture Capital joined hands with more than 20 entrepreneurs from its invested healthcare ecosystem to jointly explore topics such as opportunities and strategic pathways for Chinese enterprises expanding into international markets. Drawing on their practical experience, the participating entrepreneurs shared insights on key aspects including global expansion trends, market demands, and resource integration in the healthcare industry, providing comprehensive perspectives and insights for healthcare companies going global.

Deng Feng, Founding Managing Partner of Northern Light Venture Capital

Mr. Deng Feng, Founding Managing Partner of Northern Light Venture CapitalDelivered a sincere opening sharing.He noted that, at this juncture, the underlying rationale for Chinese healthcare companies expanding overseas has undergone significant changes.In the past, Chinese enterprises leveraged significant cost advantages in R&D and production to provide high-cost-performance products to the global market. Meanwhile, Chinese products featured rapid iteration cycles, and their supporting services held competitive edges. Today, a growing number of Chinese companies are demonstrating through real-world cases that “Chinese-style innovation” has gradually evolved from relying on manufacturing prowess, cost efficiencies, and demographic dividends into a new stage characterized by leading global technological transformation and actively participating in global innovation and industrialization.

The scale of China’s medical industry going global has continued to expand over the past few decades. In particular, the COVID-19 pandemic in recent years has accelerated the overseas expansion of pharmaceutical and medical device companies, bringing China’s “intelligent” medical manufacturing onto the global stage for scrutiny. The success of pioneers and the vast opportunities in overseas markets have spurred a growing number of Chinese medical enterprises to embark on their own internationalization journeys, making “going global” a current hot topic.

However, while the globalized market offers enticing opportunities, significant differences in regulatory processes, approval systems, and distribution channels across countries have posed considerable challenges for companies expanding overseas. The first question facing all startup entrepreneurs is:How to Take the First Step in Going Global to Seek Fortune?

Ms. Yu Fang, Partner at Aurora Venture CapitalA detailed discussion was held with the entrepreneurs present regarding preparations for the global expansion of Chinese medical device companies. Based on a comprehensive understanding of the global market, selecting which countries to enter is the primary consideration. Product market access faces the challenge of requiring in-depth knowledge of global registration regulations, necessitating trade-offs and careful balancing between distributor selection and education on innovative products.

Yu Fang, Partner at Northern Light Venture Capital (right)

In the process of Chinese medical device companies expanding overseas, everyone is exploring and advancing simultaneously.

At the seminar, entrepreneurs actively shared their experiences in overseas expansion, covering participation in international trade shows and their formats, selection and management of channel distributors, and strategies for independent brands versus OEM. Markets with unique policies and characteristics also drew significant attention. For instance, in the Middle East and Southeast Asia, locally licensed companies hold competitive advantages, making it feasible to establish local brands through joint ventures with local institutions and channels. Although Singapore’s market size is modest, it plays a crucial role in building brand presence across Southeast Asia. Some Eastern European countries, characterized by extreme price sensitivity, serve as an ideal starting point for teams venturing into international markets.

While enterprises operate at different stages, adopt varying product competition strategies, and exhibit diverse practical implementations, the fundamental essence remains a profound understanding of their own advantages and core competencies.

Going global is the first step for startups to escape the trap of cutthroat price competition, refine their products, and build their brands. Meanwhile, as one of the world’s largest single economies, China remains a critical market where globally innovative products can return to compete directly with overseas giants.

Li Bin, CEO of Bomai Medical

Bomai Medical is a highly representative company. At the seminar,Mr. Li Bin, CEO of Bomai MedicalHe shared his “dual circulation” strategy. Unlike many medical device companies that primarily target the domestic market, Biomai focused on overseas markets from its inception. After establishing its brand internationally, it expanded into the Chinese market, driving significant high-margin growth; currently, overseas revenue still accounts for more than 50% of the company’s total. Benefiting from the trends of import substitution and high-quality innovation, as well as policy and innovation dividends, Biomai has not only built a global network but also achieved rapid business growth in China. Now standing at a new crossroads, Biomai is committed to promoting “Chinese original innovations worldwide” and building an industry-leading multinational medical device platform.

Unlike pharmaceutical companies in the commercialization phase, Chinese innovative drug enterprises may have more diverse stages of going global. From the R&D phase to commercial sales, going global is no longer an option but a necessity.

Dr. Song Gaoguang, Partner at Northern Light Venture CapitalModerated the discussion on the global expansion of innovative pharmaceutical companies.Dr. Jing Zheng, Co-founder and CEO of BeiGeneShared many operational details and insights on various aspects, including the global expansion of technology, services, and commercialization partnerships.

Aurora Ventures Partner Song Gaoguang (left)

Zheng Jing, Co-founder of BeiGene (right)

Of particular importance, as going global has become a strategic imperative that every startup pharmaceutical company must consider during the R&D phase, it is crucial for domestic innovative pharmaceutical enterprises to secure PCT patents on their path toward globalization. Therefore, collaborating with international patent attorneys to implement patent layout strategies has become a necessary measure. Compared with the international market, Chinese pharmaceutical companies can obtain animal experimental data and Investigator-Initiated Trials (IIT) data more rapidly and easily within China. These data hold significant value in overseas regulatory submissions and collaborations with multinational corporations, providing strong support for pharmaceutical companies to conduct R&D and forge partnerships on a global scale.

Meanwhile, the industrial chain for innovative drugs in China is gradually maturing, with increasingly diversified approaches to investment, mergers and acquisitions, and asset transactions, thereby fostering a closed-loop ecosystem across the sector. This trend indicates that Chinese pharmaceutical companies are continuously upgrading their position within the global innovative drug value chain, laying a solid foundation for deeper integration into the global pharmaceutical innovation ecosystem.

As an investment firm focused on early-stage technological innovation, Northern Light Venture Capital maintains a keen sense of market dynamics, much like entrepreneurs do. We continuously explore and research strategies and directions for global expansion, partnering with companies to unlock innovative value. Let us witness together as Chinese medical enterprises set sail for the global stage!