Wushuang Medical's Implantable Cardiac Monitor Approved, Filling Domestic ICM Gap Amid DRG 3.0-Driven Market Restructuring

1. The Comprehensive Implementation of DRG 3.0 Forces the Elimination and Reshuffling of Various Types of Medical Equipment

In 2026, as the DRG/DIP payment system version 3.0 entered the comprehensive demonstration and implementation phase, the logic underlying medical equipment procurement in healthcare institutions underwent a fundamental shift. Hospitals no longer prioritize merely the technological advancement of equipment; instead, they place cost accounting at the forefront, repeatedly evaluating the comprehensive costs of equipment depreciation, consumables, and operation and maintenance against the DRG payment benchmarks for specific disease categories. Equipment with low utilization rates and difficulty in achieving profitability faces elimination. According to industry monitoring data, in the first three months of 2026, the market size for domestic medical imaging, surgical, and in vitro diagnostic (IVD) equipment all experienced year-on-year declines in double digits, with imaging equipment dropping by more than 20%, and the downward trend further expanding in April. Currently, over 60% of public hospitals in more than half of China’s provinces are operating at a loss, and nearly half of tertiary hospitals report book losses. The input-output ratio of equipment has been incorporated into departmental performance evaluation metrics, indicating that the medical device market is undergoing a structural elimination process. (Shiye Xia)

2. Singular Medical’s Implantable Cardiac Monitor Approved, Filling the Domestic Gap in ICM

Recently, the National Medical Products Administration (NMPA) approved the registration application for the “Implantable Cardiac Event Monitor” from Suzhou Singular Medical Equipment Co., Ltd. (Approval No.: Guo Xie Zhu Zhun 20263121367). Comprising an Implantable Cardiac Monitor (ICM) and a patient activator, this device is designed to record subcutaneous electrocardiograms and is indicated for diagnostic monitoring of patients with arrhythmia-related conditions. Implanted subcutaneously in the left chest, the ICM can operate continuously for several years after a single implantation, addressing the core challenge of low capture rates for paroxysmal arrhythmias. Previously, the domestic ICM market was long dominated by imported products; the approval of Singular Medical’s device marks the formal entry of Chinese-made ICMs into the market. Meanwhile, the company’s Implantable Cardioverter Defibrillator (ICD) has entered the special review procedure for innovative medical devices, forming a complete “diagnosis + treatment” closed loop with its ICM product. (National Medical Products Administration)

3. Johnson & Johnson Orthopaedics Appoints New CFO to Advance $20 Billion Divestiture Deal

On June 29, DePuy Synthes, Johnson & Johnson’s orthopedics business, announced the appointment of Christina Zamarro as its new Chief Financial Officer, effective July 13. Previously serving as CFO at Goodyear, Zamarro brings 25 years of global financial management experience, with expertise in asset restructuring and capital operations for large enterprises. This leadership change is viewed as a key strategic move ahead of Johnson & Johnson’s planned outright sale of its orthopedics unit, valued at approximately $20 billion. The company had previously abandoned plans for a spin-off IPO in favor of a direct full-sale approach. With annual revenues exceeding $9 billion, DePuy Synthes is a leading global player in orthopedic devices. Should the transaction proceed, it would rank among the largest mergers and acquisitions in the global medical device industry in recent years. (Jinrong Jie)

4. Sichuan Introduces New AI Policy, Smart Healthcare Receives 20 Million Yuan in Funding Support

On June 28, Sichuan Province officially issued the "Several Policies on Further Promoting the Development of the Artificial Intelligence Industry Chain." The policy lays out provincial-level flagship application scenarios across eight key sectors, including intelligent manufacturing, smart healthcare, and intelligent emergency response. Eligible projects can receive up to RMB 20 million in financial support. Adhering to the principle of "promoting production through application," the policy leverages tiered funding to accelerate AI integration in priority industries such as healthcare, while simultaneously cultivating local market demand. By driving technological innovation through large-scale scenario-based demand, it aims to address bottlenecks in supply and demand within the industry chain and establish Sichuan as a nationally renowned hub for AI industry development. (21st Century Business Herald)

5. Zhejiang Adjusts Online Transaction Prices for Certain Medical Consumables, Effective July 3

Zhejiang Provincial Pharmaceutical and Medical Device Procurement Center issued a notice on July 1, adjusting the online transaction prices of certain medical consumables in accordance with relevant requirements, effective from July 3, 2026. The adjustments cover multiple categories of medical consumables, requiring all relevant healthcare institutions, distribution enterprises, and manufacturing (or agency) enterprises to conduct transactions at the new prices. This move represents another step by Zhejiang Province in advancing price linkage for medical consumables and implementing national listed-price governance, marking an accelerated rollout of cross-provincial price linkage mechanisms at the provincial level. (Zhejiang Provincial Pharmaceutical and Medical Device Procurement Center)

6. Zimmer Biomet Acquires iovera° Cryoanalgesia Product for $140 Million

On June 30, orthopedic giant Zimmer Biomet and Pacira BioSciences announced an asset transaction. Zimmer Biomet will acquire all rights to Pacira’s iovera° nerve treatment product for an upfront payment of $70 million and milestone payments of up to $70 million (totaling no more than $140 million). The iovera° is a handheld cryoanalgesia device that uses nitrous oxide as a refrigerant to precisely block nerve pain signals. It has received FDA approval for the treatment of pain associated with osteoarthritis of the knee, and clinical data show it can reduce postoperative opioid consumption by 45%. The transaction is expected to close in the third quarter. Zimmer Biomet plans to deeply integrate iovera° into its existing knee replacement product portfolio, building a comprehensive solution spanning from preoperative analgesia to postoperative rehabilitation. (MedTF)

7. R&D and Design Services Accelerate the Clinical Translation of Medical Research Achievements

Medical device R&D is a complex and rigorous process involving technology, regulations, clinical aspects, and more. OSCIDA boasts a 20,000-square-meter science and technology innovation center and has established a Medical Device Research Institute dedicated to the clinical translation of medical research achievements. It possesses a high-level, international, multidisciplinary team proficient in the entire process encompassing R&D, regulatory affairs, clinical trials, registration, and manufacturing, capable of developing and producing various complex, innovative products. With extensive project experience and industry resources, OSCIDA has constructed a standardized, regulated, and digitalized full-process service system. It provides one-stop services ranging from preliminary market research, product concept generation, and product design and development to prototype production and testing. To date, over 200 projects have entered the review stage at OSCIDA, with more than 100 projects under development, achieving a 100% translation success rate. (Compiled by OSCIDA)

8. Leao Summit Completes Fourth Round of Financing, Reaching Hundreds of Millions of Yuan

Recently, Leiao Dingfeng Biotechnology Co., Ltd. completed a Series D financing round worth hundreds of millions of yuan, led by Qingyuan Capital, with participation from Huagai Capital and Kangqiao Capital, among others. No financial advisor was disclosed. The funds will be used for core technology research and development, the construction of a smart laboratory product system, global market expansion, and the recruitment of high-end talent, thereby promoting the automation and intelligent development of life science laboratories. Established in 2022, Leiao Dingfeng focuses on providing comprehensive smart laboratory solutions and implementation services for the life sciences sector. The company has formed a complete product portfolio and serves leading clients, including international pharmaceutical companies, top synthetic biology enterprises, world-class research laboratories, and Peking Union Medical College Hospital. The company is continuously advancing its commercial strategy that integrates wet and dry labs, as well as automated systems with artificial intelligence. It is committed to creating synergy among automation, data, and AI to build intelligent systems with continuous evolutionary capabilities. (VentureBeat)