The Jiangsu-based medical products provider Peijia Medical (沛嘉医疗) undertook its Series C funding worth USD 100 million, enhancing its research capabilities in heart disease treatment.
This round was led by new investors Hillhouse Capital (高瓴资本), CCT Fund (城通基金) and Grand Flight Investment (远翼投资), as well as existing investors such as Matrix Partners China (经纬中国) and Lilly Asia Ventures (礼来亚洲基金).
Founded in 2013 by Zhang Yi (张一), Peijia Medical focuses on research, production and sales of high-end medical devices for heart valve disease treatment.
After the company completed the fundraising, Dr. Zhang Yi in a speech expressed the importance of further investment in heart disease treatment.
“Cardiovascular disease has been the leading cause of death in patients all year round. As a high-end medical device platform for structural heart disease and neurological intervention, Peijia has long been committed to breaking through. In the field of independent innovation, combined with the development of the latest technology in the world, we continue to invest in the development of new products and treatments,” said Dr. Zhang.
Other companies in related industries – like the Beijing-based biotechnology firm Mokobio Life Science Group and medical equipment developer Vibrant Diagnostic – are striving to develop a medical platform to enhance the quality of public health. While Mokobio focuses on developing molecular diagnostic assays in the field of Point of Care Test (PoCT) and precision medicine, Vibrant Diagnostic focuses on the development of high-end genetic devices and clinical equipment.
Although China’s economic growth has slowed down, the medical device industry is still resisting the sluggish economy. In 2016, the Chinese medical device market was worth USD 53.63 billion; it’s expected to reach USD 96 billion in 2019, which accounts for 14% of the pharmaceuticals market.
However, foreigner suppliers are still leading the ranking in supplying medical devices in China, with the United States on the top, followed by Germany and Japan. These three countries represent the majority of China’s imports.
According to the Annual Report of China’s healthcare Industry, issued by the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE), China had approximately 16,000 domestic medical device and equipment manufacturing companies in 2017.
Although more Chinese firms are investing in medical devices, they still lag behind foreign firms. Nevertheless, the battle has already started. The winners in the market will be those with high-tech quality devices and innovation.