Chinese Medical Device Market

SinaMed ConsultingHao Wu

www.sinamed.ca

Agenda

• Introduction to SinaMed Consulting• Overview of the Chinese Market• SinaMed Service offering• Questions and Answers

www.sinamed.ca

SinaMed Consulting• Vision:

– To be the premier choice for foreign market entry consulting in the medical device industry for North America and Europe

• Members– Hao Wu– Timothy Fung– Eric Hu

• Why we form this company

www.sinamed.ca

Summary

• General information of Chinese Market• How to calculate potential market size for your

company• Uniqueness of the Chinese Market

www.sinamed.ca

General information

• 13,530 domestic medical device manufactures • 144,977 distribution agencies • Employees: 440,000• Gross Industrial Output Value: 168.6 billion

RMB (24.1 billion US$) in 2007• 11,724 medical devices registered in 2007

– 2, 045 imported medical devicesSource: www.sfda.com.cn

www.sinamed.ca

General information

• Achievements of the industry in 2007– Gross industrial output value: 24.1 billion, growth rate 29%– Sales revenue 23.2 billion, growth rate 29%– Gross profit 2.2 billion, growth rate 32%– Exports + Imports: 12.7 billion, growth rate 20%

• Imports 4.28 billion, growth rate 16%

Source: CMDA Annual Report

www.sinamed.ca

General Information

Beijing

Shanghai

Guangzhou

76%

www.sinamed.ca

Your potential Market

Villages & Towns

Urban Area

Tier 3 Hospital

No. of Hospital

Tier 2 Hospital

Tier 1 Hospital

Unrated Hospital

686

5156

2714

9887

Source: China Health

www.sinamed.ca

Your potential Market

• Tier 3-A Hospital– 10,000 operation/year/hospital– 1,000 beds/hospital– 100 hospitals in each of the 3 areas– 10 hospital/central city

• More than 70% medical devices in Tier 3-A hospitals are from oversea companies

2 billion US$ in 2007

www.sinamed.ca

Your potential Market

Orthopaedic surgery medical device company:• 16% growth of Imported medical device:

– 10,000 operation/hospital X 20% = 2,000 Orthopaedic surgery

– 2,000 X 16%growth = 320 operations– 320 X 10hospitals = 3,200 operations, one city– 3,200 X 5cities = 16,000 operations, one area(Shanghai)

16, 000/4 = 4,000 operations (4%)

www.sinamed.ca

Uniqueness of China

• SFDA – Lengthy 18~24 months– All imported medical devices: Class III– Clinical trials– Strategy of accelerating the process

• A good agent• Intact paperwork• US, Europe, Canada registration

www.sinamed.ca

Uniqueness of China

• Distributor• Negotiation• Education• Culture and language barriers• IP protection

www.sinamed.ca

SinaMed Consulting

• Our service offerings– Market Analysis– Registration for SFDA– Distributor Selection– Distributor Negotiations / Contract

www.sinamed.ca

Market Analysis

• Attractiveness of the Market for your product• SWOT / PESTLE analysis• Competitor Analysis

www.sinamed.ca

Registration for SFDA

• 18 – 24 months• Work with a reputable local registration

company• Monitor and update on status of regisition• We work with you

www.sinamed.ca

Distributor Selection

• Currently have over 30 partner distributors• Alignment of Distributor characteristics to

your needs• Expertise, revenue, reputation, relationship, passion

• Meeting potential distributors

• Mutual long term relationship that promotes growth for all stakeholders involved

www.sinamed.ca

Negotiations / Contracts

• Discussion on terms of engagement– Payment structure/credit line– Price – Professional training– Logistics – Exclusivity / geographic coverage

www.sinamed.ca

SinaMed Consulting

• China is a growing market – 16%• Foreign manufactured products are highly

regarded• Competition is moving

• The time is now and we can help!

www.sinamed.ca

Questions?