1. U.S. - China medical devices
2015: California MEETS
CHANGZHOU
June, 17th 2015
2. California Meets Changzhou
• The U.S. and China as well as California & Changzhou have
strong medical device industries, which offer mutual benefits
to each other.
4. China and California Medical Device
Products: Industry Products
Industry Products
• Computerized tomography (CT)
• Equipment X-ray
• Equipment Ultrasound
• Equipment Magnetic resonance imaging (MRI)
• Equipment Endoscopes
• Medical nuclear equipment Laser medical equipment
• Electronic medical Equipment
• Gamma-ray medical Equipment
5. China and California Medical Device
Products: Industry Activities
Industry Activities
• Ultrasound equipment
• Laser equipment Medical Cryo-therapy
• Apparatus Medical electronic equipment
• Medical extracorporeal circulation apparatus
• Blood purification
• Equipment Analytical Instrument of clinical inspection
• Diagnosis reagents MRI
• Radionuclide equipment
• High energy radiation equipment
6. Changzhou Medical Device Industry
• “Jiangsu Province, where Changzhou
belongs, has 31,000+ healthcare institutions,
and its number of hospitals ranks second in
China; its annual healthcare expenditure
reached RMB154.3 billion, ranking third in
the country. With a solid industrial base, it is
China's most important hub for medical
device industry.” -MEDITEXPO 2015 UBM
China-
7. Changzhou Medical Device Industry
• Changzhou is the largest production base of orthopedics
equipment, medical supplies, IVD diagnosis and rehabilitation
equipment.
• Changzhou has China's only national level medical device
innovation base, and is home to Changzhou International Medical
Equipment City, which combines the operations a number of
medical centers including: the Exhibition Center, Information
Center, Commerce and Dealing Center, Logistics Center and the
industrial center.
• Centers currently in development in Changzhou include, centers
for Academia and Research, and a Product Quality/ Inspection
Center.
Source: MEDITEXPO 2015 UBM China
8. Manufacturing of Medical Devices in China:
2014 Market Research Report
• The revenue created from China’s medical device sector has increased
over the last two years, and is trending to continue to grow over the
next five year outlook period (from 2015-2020).
• China’s 2014 medical device stats (Based on 5-year-plan. 2009-2014)
• Revenue (2014): 12 billion
• Annual Growth (2009-2014): 18.8% Growth
Employment (2014): 71,283
Businesses (Medical Device Manufacturing Businesses): 275
• The next 5-year-plan measuring China’s medical device stats will be
from (2015-2020)
*STATS BASED ONIBIS World’s Medical Device Manufacturing market research report
•
9. Manufacturing of Medical Devices in China:
2014 Market Research Report
• “The Chinese Medical Device Manufacturing
industry is set to generate $12.5 billion in 2014, up
15.8% from 2013. Industry revenue has been
growing at an annualized rate of 18.8% over the
five years through 2014, stimulated by the
increasing purchasing power of hospitals,
improvements in living standards and therefore
demand for medical diagnoses, technology
upgrades in hospitals, requirements for higher
quality products and the development of China's
western regions.” -IBIS World’s Medical Device
Manufacturing market research report 2014-
10. China’s Medical Device Sales in RMB Over 10
Years (2001-2013)
0
500
1000
1500
2000
2500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
179 207 247
295
352
434
535
659
812
1,200
1,470
1,700
2,120
10 Million
RMB (UNIT)
2001-2013 Medical Device Sales in China
11. China’s Medical Device Import Growth% in U.S.
Dollars from 2009-2015
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013
Total Import
($10 Million USD)
30.3
36.82
14.5
6%
20.07%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Yearly
Growth
Rate (%)
17.04
%
12. U.S. Medical Device Industry: Meet
California
•California has proven itself to be the biomedical hub for
the United States.
13. California: An Innovation Landmark
• “California’s successful biomedical industry is
the end result of an extensive innovation
pipeline. This ecosystem begins in the state’s
outstanding academic centers and research
institutes, continues with an entrepreneurial,
start-up culture that rewards risk-takers and
culminates with successful companies that
produce hundreds of new drugs, diagnostics
and devices.” – California’s Biomedical
Industry Report 2015 -
14. U.S. Medical Device Industry
• From 2009 to 2013, California had the highest bio-medical
employment, and one of the highest employment growth
percentages of any state.
• From 2012 to 2014, California gained more money in Life
Sciences Venture Capital Investments, than any other state
over that three year period.
• In 2013 and 2014, California was the top state to receive
funding from the the National Institute of Health (NIH).
15. TRENDING PATTERNS: 4-Year-Cycle Medical Device
Employment growth by state from 2009-2013 (Dataset)
Medical Device and Biopharmaceutical Employment by state, 2009-2013
2013 Ranking by
Employment
Employees, Change from 2009 Employment growth,
2009-2013
1.) California 199,795 (5,015) 4% Growth
2.) New Jersey 41,089 (-8,371) -17% Decrease
3.) New York 38,883 (-1,827) -4% Decrease
4.) Indiana 35,967 (-2,247) -6% Decrease
5.) Pennsylvania 35,956 (-4,605) -11% Decrease
6) Illinois 32,309 (-72) 0% (No Increase or Decrease)
7.) Minnesota 31,680 (-1,385) -4% Decrease
8.) Massachusetts 31,449 (-235) -1% Decrease
9.) North Carolina 30,911 (1,371) 5% Growth
10.) Florida 27,090 (-1,799) -6% Decrease
11.) Texas 25,702 (393) 2% Growth
12.) Michigan 21,457 (1,864) 10% Growth
13.) Ohio 17,235 (1,198) 7% Growth
14.) Utah 16,605 (2,954) 19% Growth
15.) Wisconsin 15,951 (905) 6% Growth
16. Trending Patterns (Continued) Top 10 states for Life Sciences Venture
Capital Investment (2012-2014*)
*2014 data based on projection from first two quarters
0
0.5
1
1.5
2
2.5
3
3.5
4
Billions($)
Top 10 States for Life Sciences
Venture Capital Investment
2012-2014*
2014*
2013
2012
17. Venture Capital Investment in Medical Devices by
stage, U.S. and California, 2012-2014*
• Data was collected from 2012 through the
second quarter of the 2014 calendar year,
showing Venture Capital Investments made in
California’s medical device sector.
• The development of these investments
was measured in four stages: The start
up/seed stage, the early stage, the
expansion stage and the later stage.
18. Venture Capital Investment in Medical Devices by stage, U.S.
and California, 2012-2014*
*2014 data based on projection from first two quarters
0
10
20
30
40
50
60
70
80
90
2012 2013 2014*
Millions ($)
Start Up/Seed Stage: California Venture Capital Investments for Medical Devices
2012-2014*
California
U.S.
19. Venture Capital Investment in Medical Devices by stage, U.S. and California,
2012-2014*
*2014 data based on projection from first two quarters
0
100
200
300
400
500
600
700
800
2012 2013 2014*
Millions ($)
Early Stage: California Venture Capital Investments for Medical Devices 2012-
2014*
California
U.S.
20. Venture Capital Investment in Medical Devices by stage, U.S. and
California, 2012-2014*
*2014 data based on projection from first two quarters
0
100
200
300
400
500
600
700
800
2012 2013 2014*
Millions ($)
Expansion Stage: California Venture Capital Investments for Medical Devices 2012-2014*
California
U.S.
21. Venture Capital Investment in Medical Devices by stage, U.S. and
California, 2012-2014*
*2014 data based on projection from first two quarters
0
0.2
0.4
0.6
0.8
1
1.2
2012 2013 2014*
Billions ($)
Later Stage: California Venture Capital Investments for Medical Devices 2012-2014*
California
U.S.
22. A pioneer in the Biomedical Industry:
California’s National Institute of Health (NIH
• “California’s life sciences industry is built
on, and fueled by, world-class universities
and ground-breaking biomedical research.
According to the Shanghai Index, California
has 11 of the world’s top 100 schools. New
York is the next closest with five.” -California’s
Biomedical Industry Report 2015 -
23. Data Trends from National Institute of Health (NIH) in 2013-
2014*
0
0.5
1
1.5
2
2.5
3
3.5
Billions ($)
Top 10 States Receiving NIH Funding
2013
2014*
24. California: Medical Devices, Instruments and
Diagnostics
• In California, based upon the calendar year of 2013,
employees working for medical device, instrument,
and diagnostic companies made an average annual
salary of $86,901. California’s Biomedical Industry
Report 2015-
• Total wages for all of California’s employees
working for medical device, instrument and
diagnostic companies in the same calendar year
(2013) was $6.49B. -California’s Biomedical Industry
Report 2015-
25. U.S. - China medical devices 2015:
California MEETS CHANGZHOU
Thank you!
SivaYam, CPA, CFA
U.S.-China Chamber of Commerce
www.usccc.org
312-368-9038
SivaYam@usccc.org
26. Citations
• • Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2007 Economic Census
• PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data
from Thomson Reuters
• National Institutes of Health
• NSF/NIH/USED/USDA/NEH/NASA
• Survey of Earned Doctorates, 2012
• Shanghai Ranking Consultanc
• BioPharm Insight; IND filed through Phase III, Sept. 5, 2014
27. Companies In Attendance
• FDI Strategies, LLC is a cross-border growth
company focused on assisting in growth for
businesses between the US and China. FDI
manages new market set up, acquisitions and
corporate oversight and growth for clients in
both countries.
• Grant Thornton is one of the world’s leading
organizations of independent audit, tax and
advisory firms. Grant Thornton works with a
broad range of publicly and privately held
companies, government agencies, financial
institutions, and civic and religious
organizations.
• Uptake Medical is focused on treating serious
lung disease, in particular emphysema and
lung cancer, using a targeted vapor ablation
therapy known as InterVapor, a simple 15
minute endoscopic procedure. The Company
is currently completing a randomized control
trial for emphysema and a first-in-human
study for lung cancer in Europe and Australia.
28. Companies In Attendance
• ARxIUM was formed in 2015 when Intelligent
Hospital Systems, Inc. acquired AutoMed
Technologies, Inc. ARxIUM delivers best-in-class
technology and unparalleled expertise
focused on helping pharmacies of all sizes
improve safety, productivity and efficiency.
• Kinamed Inc. is a privately held company that
that develops, manufactures, and
sells specialty orthopedic and neurosurgery
implants and instruments. We have a
presence in China in the Neurosurgery
segment of our business and would like to
develop an effective channel for our
orthopedic devices.
• Knobbe, Martens, Olson & Bear, LLP has over
275 lawyers and scientists nationwide and
dedicates its practice to all aspects of
intellectual property law, including litigation.
Knobbe Martens serves a diverse group of
clients from multinational corporations to
emerging businesses of all stages.
29. Companies In Attendance
• Eigen is a high tech medical device
manufacturing that focuses on using imaging
as a diagnostic tool for better cancer
detection. We have over 40 years of
experience in image innovations with over 45
patents.
• LEYE Investment identifies and manages
capital investment on attractive
opportunities. Our two affiliates Q8 Partners
focuses on Management Consulting and IP
Consulting; and Serene Innovations specializes
in the development and manufacturing of
communication products for seniors and for
people with special needs.
• MD3 Medevice connects innovative medical
device technologies to global markets. We
specialize in product development/product
refinement, Clinical development, establishing
clinical relevance, and global distribution
network development.
30. Companies In Attendance
• Amicus Capital Partners is a private equity
firm that invests exclusively in middle
market companies within the healthcare
industry. Members of our team are
healthcare insiders, with extensive
experience within the biopharmaceutical,
health IT, health services, and medical
device verticals.
• ENG Investment Group is a financial
brokerage and investment management,
investment banking company.
• The Velocity Orthopedics team develops,
manufacturers and markets orthopedic
surgical instruments and devices
worldwide. We are dedicated to providing
premium quality products using innovative
techniques that deliver affordable health
care solutions to our customers
31. Companies In Attendance
• The International Medical Group, (IMG)
based Indianapolis, Indiana; has provided
international medical coverage for over
twenty years. We primarily cover diplomats,
executives, tourists, exchange students
and commercial ship captains / crew in
more than (100) countries.
