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Organizer: 8 | Welcome to Wuhan! 6 | Foxconn gets into medical market 7 | Smart wearables to boom S HOW D AILY • MEDICAL • DAY 3 15-18 May 2015 National Exhibition and Convention Center, Shanghai Outstanding, Awesome, Unmatched T hat just about sums up the consensus on CMEF as it went all out to create a forum for ideas, a platform for exchange and a showcase of outstanding technology A S MEDICAL manufacturers face increasing competition in a saturated market, companies must begin commercialization early in the product lifecycle. However, teams must acquire the appropriate personnel and financial resources either internally or through acquisitions — to adequately support emerging medical devices throughout development. Medical device manufacturers hoping to enter the US market face increasing commercial competition and challenges to gain the funding necessary to support emerging brands. Because development and commercialization can consume a lot of resources, many device firms look to partnerships and acquisitions to move products to market. 4 out of 5 top 10 medical device manufacturers look to collaboration and acquisitions to support device development and commercialization Even Top Medical Device Makers Agree to Collaborate According to a new study published by primary intelligence firm Cutting Edge Information, 80 percent of surveyed Top 10 medical device companies look to outside sources to commercialize medical device brands. The majority (60 percent) of product development among Top 10 companies was enabled by technology or business acquisitions and another 20% via joint ventures or collaborations with other firms. “In some cases, companies work together to develop or support a single brand,” said Victoria Cavicchi, research analyst at Cutting Edge Information. “Device manufacturers use partnerships and acquisitions to gain access to new technology. They may also seek a partner to commercialize the product or aid in any number of development processes.” One interviewed executive explained that his firm worked in a true partnership with a parent company to develop a cardiology device. The two organizations delineated roles and responsibilities early in the efforts. While the executive’s firm developed and manufactured the product, its partner – the parent company – took on the cost of testing and commercializing the device. Although acquisitions and partnerships are common for large organizations, they were not as prevalent among surveyed Top 50 and small device manufacturers. In fact, among all surveyed firms, 71% reported developing their brand internally. According to research by A.T. Kearney in “Medical Devices: Equipped for the Future?”, the cash value generation potential in the medical device industry could potentially grow to a USD 34 billion by 2020. However, the research also predicts a decline in margins of up to 6 percent between now and 2020, suggesting that companies in the industry need to adjust for the impeding disruptions and changes in the industry in order to succeed. Additional research on the USD2.8- trillion U.S. healthcare industry by PwC Health Research Institute in “Top Health Industry Issues of 2015” noted that one of the trends identified in 2015 was a shift toward more user friendly medical devices. Notably, the research shows that within the next five years, 90 percent of physicians surveyed believed that patient devices and applications will be important to their practices.

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Page 1: Unmatched - CMEF · remote monitoring health factors like blood pressure, blood glucose, and weight, as well as mobile interventions in the areas of patient engagement, medication

Organizer: 8 | Welcome to Wuhan!6 | Foxconn gets into medical market

7 | Smart wearables to boom

ShoW Daily• M E D I C A L •

Day3

15-18 May 2015National Exhibition and Convention Center, Shanghai

outstanding, awesome, Unmatched

That just about sums up the consensus on CMEF as it went all out to create a forum for ideas, a platform for exchange and a showcase of outstanding technology

AS MEDICAL manufacturers face increasing competition in a saturated market, companies

must begin commercialization early in the product lifecycle. However, teams must acquire the appropriate personnel and financial resources — either internally or through acquisitions — to adequately support emerging medical devices throughout development.

Medical device manufacturers hoping to enter the US market face increasing commercial competition and challenges to gain the funding necessary to support emerging brands. Because development and commercialization can consume a lot of resources, many device firms look to partnerships and acquisitions to move products to market.

4 out of 5 top 10 medical device manufacturers look to collaboration and acquisitions to support device development and commercialization

Even Top Medical Device Makers Agree to Collaborate

According to a new study published by primary intelligence firm Cutting Edge Information, 80 percent of surveyed Top 10 medical device companies look to outside sources to commercialize medical device brands. The majority (60 percent) of product development among Top 10 companies was enabled by technology or business acquisitions and another 20% via joint ventures or collaborations with other firms.

“In some cases, companies work together to develop or support a single brand,” said Victoria Cavicchi, research analyst at Cutting Edge Information. “Device manufacturers use partnerships and acquisitions to gain access to new technology. They may also seek a partner to commercialize the product or aid in any number of development processes.”

One interviewed executive explained that his firm worked in a true partnership with a parent company to develop a cardiology device. The two organizations delineated roles and responsibilities early in the efforts. While the executive’s firm developed and manufactured the product, its partner – the parent company – took on the cost of testing and commercializing the device.

Although acquisitions and partnerships are common for large organizations, they were not as prevalent among surveyed Top 50 and small device manufacturers. In fact, among all surveyed firms, 71% reported developing their brand internally.

According to research by A.T. Kearney in “Medical Devices: Equipped for the Future?”, the cash value

generation potential in the medical device industry could potentially grow to a USD 34 billion by 2020. However, the research also predicts a decline in margins of up to 6 percent between now and 2020, suggesting that companies in the industry need to adjust for the impeding disruptions and changes in the industry in order to succeed.

Additional research on the USD2.8-trillion U.S. healthcare industry by PwC Health Research Institute in “Top Health Industry Issues of 2015” noted that one of the trends identified in 2015 was a shift toward more user friendly medical devices. Notably, the research shows that within the next five years, 90 percent of physicians surveyed believed that patient devices and applications will be important to their practices.

Page 2: Unmatched - CMEF · remote monitoring health factors like blood pressure, blood glucose, and weight, as well as mobile interventions in the areas of patient engagement, medication

www.cmef.com.cn2 ShoW Daily• MEDICAL •PAGE

Today’s Schedule for 73rd CMEF China Official Seminars & Conferences Time Venue

2nd Private Medical Institution Innovative Development Forum 09:00 - 12:00 Room M8-04

3rd Technology Innovation Forum on Customized Medical Device Manufacturing Services 09:00 - 17:00 TBA

Conference on New Progress in CMEF OR-Operating Room Integration 14:00 - 16:30 Room M7-04

Southeast University-Industry Cooperation Forumon Biomedical Engineering 14:00 - 18:00 Room C0-01

CERAMICS offer a cost-effective and high-performance substitute for traditional materials such as glass,

metal and plastic. The current trend for advanced ceramics is bringing innovation into medical technologies.

One such ceramic for medical and laboratory applications is MACOR from Corning. Its inert properties and low-density composition lends itself to the development of certain medical devices. Another advantage is that it can be machined by ordinary metal working tools, drastically reducing development time as conventional tooling is not required.

Macor is a composite, low-density, glass ceramic material and can be used in vacuum, radiation, and electronic insulation environments. Offering the strength and durability of a technical ceramic, the versatility of a high-performance polymer and the machinability of a soft metal, the ceramic’s durability and flexibility also allow it to be used to design components with complex geometries for use in medical equipment and systems.

A trusted engineering solution that was used in the United States’ Space Shuttle program, the ceramic composite can be sealed to many metals and performs well in harsh environments. Today, it is available throughout Asia.

“Medical and laboratory device manufacturers in Asia face the demand for high reliability,” explained Franck de Lorgeril, global marketing and sales manager, Industrial Products at Corning. “It is therefore vital that manufacturers have access to high-quality and trusted material solutions capable of creating products that enable them to stand out against competitors.”

With its high temperature resistance, inert properties and good tensile strength, insulation properties and resistance to radiation, Macor offers qualities needed in the medical field that manufacturers may well be looking for.

Ceramic Composites for Medical Implants and Devices

A JOINT research of the Industry and Information Technology (MIIT) and the

Chinese Academy of Engineering (CAE) shows that the consumption of energy resources and emissions still mainly come from China’s industries, and there is still some way to go with respect to energy and water efficiency.

The research suggests that the peak production and peak energy consumption of iron and steel, building materials and paper industry will occur around 2015; while non-ferrous metal, petrochemical and chemical will occur in 2025 to 2030. The peak of total discharge of major pollutants will occur earlier than the peak of total energy consumption.

Green Manufacturing Gets a BoostThe MIIT’s vice minister Mao Weiming

says MIIT will boost green manufacturing and accelerate the transformation and upgrading of traditional manufacturing industries and build a high-efficient, clean, low-carbon and recycling green manufacturing system.

Green manufacturing is also one of the mega projects of “China Manufacturing 2025” plan, which was recently approved by the State Council executive meeting in Beijing. The others are construction of national manufacturing innovation centers, intelligent manufacturing, industrial base capacity and quality enhancement, high-end equipment innovation. The Plan came out of the 3rd Session of the 12th National People’s Congress in early March as part of a larger 30-year plan to transform China from being a “big industrial country” to a “powerful industrial country.”

MIIT will likely build 1,000 green model factories and 100 green model industrial parks by 2020. Specific measures also include developing a new generation of recycling process technology; promoting process technology that can utilize energy with high efficiency, pollution reduction and harmless treatment, etc. Meanwhile, the MIIT will support enterprises to develop green products, build green supply chains, guide green production and consumption, strengthen energy-saving

outstanding, awesome,Unmatched

and environmental-protection supervision, and launch green evaluation.

On 7 May, the Department of Energy Conservation and Resources Utilization held the Medical Device Manufacturing Conference in Beijing, discussing about the development of medical device remanufacturing technology, regulations and market operation.

For the medical industry, remanufacturing industry is in line with green manufacturing project of “China Manufacturing 2025”. It requires active communication and cooperation of all parties with respect to technology, markets, services and regulatory system. Department of Energy Conservation and Resources Utilization supports that under the strict supervision, the relevant companies to remanufacture medical imaging equipment without damaging quality and avoid early retirement which causes a huge waste. In 2005, Siemens (H8.2-F09) begun medical device remanufacturing. Remanufacturing does not change properties of initial product. The whole product standards are still the same as the initial product standards in accordance with EU requirements and provide the same after-sale service. The implementation of medical device remanufacturing can significantly reduce production costs, but also save lots of social resource.

Dr. Constantine E. Avramiotis Athens and Corfu, Greece

I did not know about this show, but it just so happened that we are in Shanghai and someone we met at our hotel

mentioned this show. I’m very impressed at the organization and efficiency. On the first day, I had never seen such a huge crowd at a show yet registration was very fast and everything was smooth, even lining up to get in with so many people did not take 5 minutes. And I am really impressed by the quality and quantity of the products of this show. Our company owns and operates medical centers all over Greece and we cater mainly to medical tourists who have cosmetic procedures, such as cosmetic dental procedures, but we also handle emergency cases of tourists who have accidents while on holiday in Greece. So we certainly have an interest in the latest equipment and new technologies, and I have attended shows in Germany many times, but I must say the scope and range of products here surpass any show I have attended. It’s outstanding, and we will definitely be back next year.

Georgii PopenkovMoscow, Russia

I am from Moscow and this is my first time in China. I am very excited to be at this show because it’s so huge and I’m so impressed,

and that’s no exaggeration. Everyone is moving so fast and yet very friendly. I opened my company 10 years ago and I built my business by showing new technology. The quality of the Medical products made by Chinese manufacturers that I have seen here is awesome, and I have decided to cooperate with three companies. The place is so huge that I have only explored the 2nd level over these two days, and but I intend to see the nutritional section and I am even thinking of bringing over organic and healthy products from Russia, and possibly joining the exhibition.

Page 3: Unmatched - CMEF · remote monitoring health factors like blood pressure, blood glucose, and weight, as well as mobile interventions in the areas of patient engagement, medication

ShoW Daily 3PAGE• MEDICAL •www.cmef.com.cn

SAMSUNG Electronics and Partners HealthCare set up a partnership in April to co-develop mobile health

solutions. The first phase of the partnership involves software development and clinical research to create more effective remote monitoring for chronic condition management.

Samsung’s latest move comes as its major mobile device competitor, Apple, is deeply immersing itself into health and fitness tracking as it touts the health-tracking features on its new Apple Watch. Apple’s HealthKit device platform already supports 900 apps designed to help people track and manage their health. And its new ResearchKit is meant to harness smartphone users for medical research studies.

Partners, a not-for-profit healthcare system, will launch a clinical trial of the new software in June. A press release from Partners indicates a focus on remote monitoring health factors like blood pressure, blood glucose, and weight, as well as mobile interventions in the areas of patient engagement, medication adherence, and wellness self-management.

“We are excited to have access to the vast capabilities of Samsung Electronics to help improve the way we deliver care to our patients. This joint development program has the potential to significantly propel mHealth and personal connected health forward,” Kamal Jethwani, senior director of Connected Health Innovation at Partners HealthCare, said in a statement. “This project represents the start of how smart technology, intelligent algorithms and world class clinical expertise can be combined to change the paradigm of care delivery.”

“This unprecedented new partnership brings to bear the unique strengths of Samsung Electronics, the Partners Connected Health team and our leading healthcare providers, to expand the boundaries of digital health technology,” said Koseph C. Kvedar, MD, vice president of Connected Health at Partners HealthCare.

“Combining our real-world clinical experience and implementation of connected health solutions with their leading mobile and IT technology, we believe that, together, we can re-imagine the future of health and wellness and deliver innovative, convenient and powerful personal connected health tools,” Kvedar said.

The problem with using a lot of connected devices and a separate hub device is that they add extra steps to a process that should be as streamlines as possible to maximize patient engagement, Kvedar said.

“This partnership will be an important step towards embracing the real needs of healthcare providers and patients. We aim to leverage our technology to help individuals lead healthier lives, while delivering healthcare providers the tools

Co-develops mobile health solution with Partners Healthcare

Samsung Gets into the Act

they need to improve clinical outcomes,” Suntae Jung, vice president, Samsung Electronics said in a recent statement. “We look forward to collaborating with Partners HealthCare and Massachusetts General Hospital, and to the unlimited potential for mobile care technology.”

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www.cmef.com.cn4 ShoW Daily• MEDICAL •PAGE

The Future of Medical NonwovensThe global consumption of all medical

nonwovens is valued at USD 1.5 billion in 2013 and is forecast to grow to USD

2 billion by 2018 at a compound annual growth rate (CAGR) of 5.1%

Traditionally, medical nonwovens have consisted of surgical gowns, drapes and packs; sterile packaging and wraps; wound care; other disposable apparel such as patient gowns, nurses’ and doctors’ gowns; face masks; shoe and hair covers; and other medical materials such as isolation drapes. In the study, nonwovens used in incontinence products for institutionalized users (mainly medical underpads) and nonwovens used in healthcare industrial wipes (used primarily by hospitals and healthcare institutions) are forecast for steady growth.

Surgical drapes and gowns remain the largest medical nonwovens end use globally, as well as in most regions, with global

consumption valued at USD 889.2 million in 2013 and a forecasted value of over USD 1 billion in 2018, growing at an annual rate of 3.9% from 2013-2018. Incontinence products are globally the second largest end use as well as the fastest growing end use, with an annual growth rate of 8.2% from 2013-2018.

In healthcare, nonwovens are utilized to a large extent in products that are designed to provide barriers (e.g., barriers between patients and themselves, barriers between the patient and the physician/caregiver and also barriers between patients). The spread of infections—whether it is Hospital Acquired Infections (HAIs) or Surgical Site Infections (SSIs)—continues to rise. Sporadically, numbers do fall, but this is then followed by an ever-increasing ramp up. This situation is a concern both for the patient and for healthcare establishments.

Nonwoven products remain the component of choice for providing appropriate protection due to their ability to create barriers either from the structure of the nonwoven itself or from an additional active coating for personal protective apparel. However, less invasive surgeries and procedures being carried out remotely by more efficient robots may ultimately impact the overall design needs of these products in the future, along with other performance factors for protective apparel, such as absorption levels, due to a lower volume of any Other Potentially Infectious Fluids (OPIF) or the remoteness of the physician to immediate exposure.

Developing economies, where the demand for healthcare is beginning to increase, are expected to help sustain growth of nonwovens use. These countries will undoubtedly provide alternative markets for new penetration models with disposable protective apparel. This expansion also extends to some markets in Europe where single use, disposable protective apparel is not typically the norm. Generally, in global demographics, the aging population is an important component and plays a significant role. Product innovations are necessary and will be expected for this user group in order to enhance quality of life.

Asia Pacific is fast growing in its use of nonwovens. China, in particular, is in the midst of overhauling its approach to healthcare, supported by its buoyant economy. The penetration of single use medical nonwovens is linearly related to the country’s Gross Domestic Product (GDP) and is a helpful, leading indicator for the market5. GDP in China expanded 1.8% in the first quarter of 2012 over the previous quarter, yet as such represented a three-year low position.

Incontinence Products represents the largest product category in the global medical nonwoven disposables market. Increase in the number of people affected by incontinence and introduction of innovative products, such as thinner and rustle-free diapers, are driving market growth. Though North America and Europe are major markets, Asia-Pacific is emerging as market with enormous potential for incontinence products due to the aging population, particularly in China.

The study – The Future of Medical Nonwovens to 2018 – covers the time frame 2008-2018, examining market trends for the historical period 2008-2013 and presenting market forecasts for the period 2013-2018, giving data in value terms, tonnage, and square meterage. The study breaks down the global market for medical nonwovens by process technology, by end use, by raw material base, and by geographic region.

In the future, manufacturing, converting and use of nonwovens in the “home” market are considered potential opportunities for growth. They certainly make use of the footprint of nonwoven equipment already deployed in Asia and eliminate navigating the tortuous supply chain process to place products for sale in the U.S. market. There are numerous factors that need to be overcome by U.S. distributors, namely, navigating the geopolitical instabilities, increasing regulations, remote suppliers and the challenges with labor and currency issues and, most significantly, unpredictable fuel costs.

Global consumption of medical nonwovens by end use, 2008, 2013 and 2018 forecast (USD million)

Page 5: Unmatched - CMEF · remote monitoring health factors like blood pressure, blood glucose, and weight, as well as mobile interventions in the areas of patient engagement, medication

ShoW Daily 5PAGE• MEDICAL •www.cmef.com.cn

Asia Pacific medical technology industry forms trade group

L EADING companies in the medical technology industry have formed the Asia Pacific Medical Technology Association

(APACMed), focused on advancing patient care. Member companies include Abbott, Baxter, B. Braun, BD (Becton Dickinson and Company), Boston Scientific, Cardinal Health, GE Healthcare, Johnson & Johnson, Medtronic, Philips, Siemens, Stryker and Zimmer.

APACMed intends to address the unmet needs of two-thirds of the world’s population that resides in this region by improving access to high quality healthcare for patients by collaborating with governments, policymakers, and other stakeholders to create innovative solutions and jointly shape the future of healthcare in the region.

“Our aim is to represent the diverse group of innovative medical technology companies and industry associations in the Asia Pacific region,” said Vladimir Makatsaria, chairman of APACMed. “This is the first time we have combined our efforts to drive access, innovation, and collaboration in order to benefit patients in Asia Pacific.

APACMed will represent manufacturers and suppliers of medical

devices and in vitro diagnostics, industry associations and other key

stakeholders associated in the region

technology, promote regulatory harmonization, encourage sustainability, and establish a voluntary code of ethics.

“As members of the global healthcare community, it is our responsibility to ensure patients have access to the most innovative, life-changing healthcare solutions. It is our hope that APACMed will be a unifying voice for the medical devices and in vitro diagnostics industries in Asia Pacific,” said Mr. Nyberg, commenting on his appointment.

APACMed (www.apacmed.org) will have its headquarters in Singapore, where many leading medical device companies have established their regional headquarters as well as innovation centers, according to Kevin Lai, executive director, Biomedical Sciences and Consumer Businesses, Singapore Economic Development Board (EDB).

“We welcome the establishment of APACMed in Singapore and we believe it will strengthen the medical device industry’s efforts in driving innovation and talent development to better address the healthcare needs in region,” Mr Lai said.

We welcome medical technology companies and associations with a similar vision to join us.”

APACMed will strive to impact policies that advance patient access to quality healthcare. The association will engage in key areas such as the regulatory environment, ethical business standards and compliance, and will help the industry promote innovation and talent development in the region. In addition, it will strive for sustainable development of products and services to address the unmet healthcare needs of the region.

The medical technology industry in Asia Pacific is growing at an annual rate of approximately 10 percent and is expected to reach USD 71 billion this year.

“With the dynamic healthcare landscape, greater collaboration is needed to solve mutual healthcare challenges in innovative ways,” said James Lim Leong Ching, board member and president, Greater Asia, BD. “We want to make modern, innovative, and reliable technologies available to patients in Asia Pacific.”

APACMed has appointed Fredrik Nyberg as chief executive officer of the association to realize this vision and to work with the industry and its partners to demonstrate the value of innovation in medical

Compact and lightweight bone densitometry systemTAKING a cue from nature, Hitachi

Aloka Medical has developed an eggshell-inspired ultrasound bone densitometry system, the “EggQus”, which is both compact and portable. Compared to conventional systems, EggQus is light and versatile, and the large integrated handle facilitates in-hospital rounds and house visits.

A new approach has been used in the development of the, EggQus has been created using the design concept of an eggshell, a shape born in nature. Its versatility and portability are further enhanced with the following features:

Rechargeable battery operation – The system is powered by rechargeable batteries enhancing its portability.

Continuous and convenient use can be sustained using the AC adapter accessory.

Easy operability – The motor-controlled transducer unit moves automatically, minimizing manipulation by the operator.

Measurement in approximately three seconds – The short measurement time is convenient for elderly examinees and for screening that requires rapid handling.

Based in Tokyo, Hitachi Aloka Medical is a subsidiary company of Hitachi Medical Corporation, also headquartered in Tokyo. The company delivers modern diagnostic ultrasound technology for medical doctors and patients.

Q-APPS, the industry’s first fully-integrated healthcare quality information system, is

designed to improve the overall performance of quality efforts within hospitals. The system effectively prepares quality and safety professionals, physicians and administrators to meet and exceed current quality requirements and positions them to be prepared to meet new requirements as they are presented.”

The product hosts a variety of services including:

Infection Control – Acts as an extension of hospital personnel, reviewing patient records and cultures to determine hospital acquired conditions and directing administrators and infection preventionists as to the root of the problem so measures can be taken immediately on-site to avoid a bigger problem. Infection protocols covered include CAUTI, CLASBI, SSI, MRSA and C.Diff.

Readmission Reduction – Enables hospitals to view the most accurate prediction of a patient’s risk for readmission instantly, allowing them to reduce the readmission rates before the current admission is complete.

Registry Abstraction – Leverages Q-Centrix’s deep knowledge as the largest registry abstraction organization to facilitate efficient registry abstractions with a high degree of quality to help hospitals keep up with required reporting and meet all harvest dates.

Concurrent Review – Facilitates real-time review of patient data and core measures to guarantee the right treatment plan is undertaken and ensure the best patient outcome. With

The Industry’s First Healthcare Quality Information SystemProduct suite designed to improve the performance of a hospital’s overall quality efforts

Concurrent Review, Q-Apps can facilitate changes to care as the patient is being treated.

Retrospective Review of Core Measures – As the healthcare industry’s largest quality data abstraction service company in the nation, Q-Centrix offers an unmatched core measure abstraction solution designed to meet all quality reporting deadlines and allow hospital staff to focus on improving and implementing patient care.

Q-Apps was developed internally and tested by the Q-Centrix workforce, nearly 700 quality information specialists. The firm also engaged quality leaders, data abstractors and computer scientists to test the product to ensure that the service will best optimize, track, measure, report and assist care providers in their quality initiatives.

“The product was designed to be flexible so that changes and additions can be readily made to expand on what is being monitored and reviewed with little impact to the system. This enables users to easily obtain feedback on any number of procedures and initiatives for a wide variety of other disciplines within the hospital such as peer review, risk and safety, process improvement efforts, and more,” explained Brian Foy, vice president, Product Development at Q-Centrix.

Q-Apps can also be offered as a stand-alone solution for hospitals who have a fully staffed team of quality abstractionists and want to provide a more comprehensive level of performance management, transparency and reporting and ultimately, improve the quality performance of their institution.

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www.cmef.com.cn6 ShoW Daily• MEDICAL •PAGE

Electronics manufacturer Foxconn enters medical market

ACCORDING to a report from The Wall Street Journal, the world’s biggest electronics manufacturer

Foxconn (Taiwan) is working with Varian Medical Systems (Palo Alto, CA) to distribute that company’s radiation therapy technology in China

Foxconn became a part-owner of remote patient monitoring firm Sotera Wireless (San Diego) last year. Under the deal, Foxconn would manufacture sensors and batteries for Sotera’s ViSi Mobile technology while also distributing the technology in China. Though the monitor manufactured in the United States, Sotera may ultimately turn have Foxconn make the products in Asia, the WSJ reported.

Foxconn has been working to diversify its business lately in other ways as its biggest client, Apple, diversifies

its supplier base. It is reportedly also considering striking a deal with Sharp. It also has invested in Snapdeal.com, an Indian e-commerce startup also backed by eBay, as well as in telecom services and mobile software. Last year, it announced plans to launch a chain of health resorts, staffed by psychologists, nutritionists, and physical therapists.

The company hopes that its healthcare business will bring in USD 200 million by 2020, which is dwarfed by the company’s current revenue of USD 130 billion.

Still, Foxconn may have found a profitable niche in the medical technology contract manufacturing market. According to PA Consulting Group, the global market area will expand from $23 billion in 2013 to $35 billion 2016 – a 52% increase in three years.

Experts said that the product life cycle of iPhone is usually less than three years, but the product life cycle of medical device is around twenty years since the regulation of medical market is strict and the competition is limited. The medical device expert of PA Consulting Group Simon Brunell said that the margins for contract manufacturers is also much lower for consumer electronics – in the ballpark of 4 to 7 percent compared with 23 to 25 percent for medical device projects.

As the consumer medical market growing, the traditional boundary between consumer electronics and medical device is getting blur. Contract manufacturers can serve two markets at the same time and they are going to compete with each other.

The idea of Foxconn entering medical market came from Guo Taiming, the company’s founder. In 2005, his first wife died of breast cancer and in 2007, his brother died due to leukemia, which spurred Guo to donate 500 million dollars to Taiwan University for establishing and operating a center of cancer prevention and treatment.

This donation has paved the way for the establishment of healthcare business group. In order to study the medical device market and look for the opportunity of growth, Foxconn also recruits hundreds of experts.

“A lot of people do not know that Foxconn also manufacture medical equipment. Our main challenge is to attract the talent from medical field,” Leonard Wu, the general manager of Healthcare Business Group of Foxconn, said.

Over the past few years, Foxconn has set up production line for blood glucose monitoring devices and EEG monitoring sensors.

Wu said Foxconn has more than 90 factories around the world, only four of them are qualified to manufacture medical devices and components. These factories are located in Mainland China and in Taiwan.

The executives of Foxconn said that in different countries, it usually take more than a year to obtain necessary regulatory approvals for medical devices, which makes manufacturing medical device more challenging than assembling consumer electronics products.

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ShoW Daily 7PAGE• MEDICAL •www.cmef.com.cn

THE global smart wearable device market is forecast to grow to US$41 billion by 2020. These devices,

typically worn or attached to a user’s body to monitor changes in various organs and body parts, currently have a market size of USD 2 billion.

Wearable devices, smart algorithms, and the existence of huge, easily accessible health databases are disrupting the health industry with their rapid growth. The market is segmented into two: smart wearable healthcare devices and smart wearable healthcare services.

Healthcare devices include smart watches, wearable hand, smart diapers, wristband, pedometer, and bionic suit. They can monitor and track the daily activity of users. The devices support heart rate and body temperature monitoring, remote cardiac monitoring, calorie burnt and taken calculation, and sleep statistics, even of babies. They sync with smartphones and tablets for data recording and analysis.

One of the key applications for smart wearables is in tele-home healthcare. Besides improving the monitoring and treatment processes, the devices save time and lowers healthcare costs with features such as remote monitoring of patients by physicians.

Bigger aging populations such as in North America and Western Europe, where high life expectancy has led to increased aging populations, will provide additional boost for the smart wearable healthcare device market. The rise in chronic diseases such as diabetes, arthritis, cancer, obesity, heart diseases, asthma, and COPDs will also spur further adoption of the technology. It will be increasingly seen as key to monitoring the health conditions and daily activities of the elderly, especially the baby boomers.

Internet + Medical Development

Wearable healthcare devices will need companies such as United Imaging (H7.2-D02) to provide the

“Internet Plus” that will make sense of the data and help to make accurate diagnosis. The Shanghai-based company officially announced its “U+ Internet Medical” strategy at its product launch conference: To connect imaging devices with the Internet and achieve intelligent diagnosis and regional medical resources synergy based on the Internet and the Big Data, constructing intelligent medical ecosystem.

Internet Plus is the integration of the Internet and traditional industries through online platforms and IT technology. This integrated structure is expected to help economic restructuring, improve people’s livelihoods and transform of government functions, according to Wu Hequan, academic of Chinese Academy of Engineering.

United Imaging president Xue Min says that this intelligent medical ecosystem consists of four key pillars – all fronts perform medical imaging diagnosis imaging and treatment device, regional “imaging cloud”, regional “medical-Internet-cloud”, and the stores the Big Data collected through these three pillars and relevant Big Data applications. Currently, United Imaging has completed the preliminary layout of the whole ecological system closed loop and is promoting intelligent imaging diagnosis, serious illness early screening and intelligent and precise radiotherapy via the Big Data collected.

Smart Wearables Market to Hit USD 41bn by 2020

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www.cmef.com.cn8 ShoW Daily• MEDICAL •PAGE

Welcome to Wuhan!

OVER 200,000 visitors came to the first-ever integrated healthcare event in Asia. This

number far exceeded expectations and had everything to do with the synergy created when the Medical, Pharmaceutical and Allied fields work together. It is a positive step towards the integration of the industry.

Much of this success lies in the range and depth of technology shown by the exhibitors. It is this unparalleled scope that allows CMEF to maintains its position as the leading exhibition of its kind.

This edition, a score of international and regional pavilions proved to be crowd-drawers, and you could say that foreign companies tried to put on a good show that excited the industry.

For the next CMEF in Wuhan, secure your stand now. Please meet our colleagues from the Medical Business unit in the Sales office in Room M8-02 located on Exhibition Avenue/ Level 8M.