How Can MedTech Companies Leverage Technological Innovation and Strategic Precision to Expand Globally? | Highlights from GGF2024
The complexity and diversity of the global healthcare market pose significant challenges for medtech companies aiming to expand internationally. Efficient market entry has become a focal point for the industry. On December 19, the EqualOcean "2024 Go-Global of 100 Forum (GGF2024)" and the Emerging Industries Go-Global Forum featured a roundtable discussion titled How Can MedTech Companies Leverage Technological Innovation and Strategic Precision to Expand Globally?
The session brought together industry leaders, including Mr. Ma Xiaowu, Executive Vice President of Qingsong Health（轻松集团，马孝武）, Ms. Shan Yuge, Founder of CASG (China-oriented Advanced Strategy Group)（单煜格）, Ms. Liu Xuejiao, General Manager of Hybio Pharma（翰宇药物，刘雪皎）, and Mr. Wang Tong, Vice President of Strategy at InferVision（推想医疗，王桐）. These experts delved into the critical strategies medtech companies need to navigate the challenges of global expansion effectively.
Below is the dialogue transcript (edited):
"Serving Clients and Industry Experience"
Dan Yuge, Founder of CASG (China-oriented Advanced Strategy Group):
My experience spans from strategic transformations for Silicon Valley startups to assisting domestic internet companies with complex business expansions. In recent years, our company has focused on facilitating the globalization of sectors such as new energy, consumer goods, internet enterprises, and energy-heavy industries. This has allowed us to accumulate extensive practical experience. For example, my team once helped a global leader in energy technology devise a strategy to enter the Southeast Asian market. In this project, we not only identified target countries but also analyzed subsidy policies, saving our client tens of millions in costs.
Liu Xuejiao, General Manager of Business Development at Hybio Pharma:
Hybio Pharma is dedicated to the research and development of peptide drugs and has been deeply rooted in this industry for 26 years. Listed on the Shenzhen Stock Exchange in 2011, we hold the largest portfolio of peptide drugs in China and are among the most specialized companies in this niche sector.
Regarding our global strategy, international product development has always been one of Hybio Pharma's three core strategies. As early as 2011, we began expanding into global markets by building R&D, production, and quality systems that meet European and American standards. By 2013 and 2019, Hybio Pharma had established GMP-compliant facilities for both finished products and APIs. In June 2024, our liraglutide injection obtained its first ANDA approval in the United States—a milestone achievement that set the stage for our broader international ambitions.
Wang Tong, Vice President of Strategy at InferVision:
At InferVision, we are committed to showcasing the creativity, originality, and scientific breakthroughs of the Chinese people to the world. This has been one of our primary motivations. Currently, InferVision has over 34 projects leveraging AI to empower medical imaging. Since our establishment in 2016, we have been committed to internationalization.
When there was skepticism in China regarding the application of AI in medical imaging—questions about its reliability, accuracy, and its role in diagnostics—we were the first to secure FDA approval in the U.S., followed by CE certification in the EU, and later contributed to setting AI imaging standards in China. Many of our achievements stem from synergies between domestic and international collaboration, driving innovation and growth.
My first encounter with InferVision was during the early days of the pandemic. A ship laden with patients was stranded offshore, unable to dock in China or Japan. It was then that I learned AI products could rapidly distinguish between COVID-positive and negative cases, enabling precise isolation measures. This incident introduced me to InferVision and their AI solution for COVID-19 detection, capable of making determinations within seconds. During the pandemic, when many doctors couldn't work on-site, AI applications significantly reduced costs, improved diagnostic consistency, and effectively addressed public healthcare challenges.
Before joining InferVision, I worked at Johnson & Johnson and Philips in sales and management roles for medical equipment. Now, as part of InferVision, I am proud to witness Chinese companies driving innovation and R&D in sunrise industries.
"Key Considerations for Market Entry"
CASG Founder Yu Ge Shan shared her insights on providing overseas market entry services for clients. She emphasized that the first step is clarifying why a company wants to expand internationally. She observed that around 30% of businesses, upon closer examination, realize that their domestic market foundation is not solid enough, and pursuing overseas ventures might not be the best option. Such attempts could undermine stakeholder confidence due to the strain on organizational and financial resources. For well-prepared companies, she highlighted the importance of assessing their goals, product competitiveness, organizational strength, and brand power. Companies must then analyze market segmentation advantages, identify which products can command premium pricing, determine the most suitable cities for entry, and design differentiated strategies to achieve rapid growth and market penetration.
"Ensuring Regulatory Compliance"
Hybio Pharma Business Development Director Xuejiao Liu discussed the unique challenges of pharmaceutical products, which are subject to stringent regulatory requirements. Companies must adhere to the specific demands of regulatory bodies in different regions, which are non-negotiable. For instance, a semaglutide injection for type 2 diabetes treatment was approved with two dosages in China, four in the EU, and three in the U.S. Each region has unique requirements for volume, drug concentration, and injector pen specifications. Moreover, the submission requirements vary significantly: China mandates large-scale clinical trials for generic drug approvals, the EU requires bioequivalence studies, while the U.S. focuses on pharmaceutical and immunogenicity comparisons. These differences directly affect costs, research data, and patient recruitment strategies. Without a global strategy during the initial project phase, companies risk duplicating efforts, wasting time and resources, and delaying product launch timelines.
Given this complexity, top-level design during the initial project stage is crucial for successful market entry. Clearly defining the product’s market positioning and regulatory requirements for target regions from the outset helps avoid redundant research and data inefficiencies, effectively reducing costs. For example, Hybio Pharma's recently approved liraglutide injection took 13 years from inception to approval. The company’s perseverance stemmed from rigorous early-stage analysis of product demand and application scenarios. This drug demonstrated exceptional clinical performance not only in blood sugar control but also in weight management, cardiovascular disease, and kidney disease. Moreover, the company considered potential future adaptations, such as transitioning from an injectable to an oral tablet form. This foresight anticipated a surge in raw material demand—up to 100 times the current levels. By aligning market potential with future needs, the company developed a comprehensive strategy early on, enabling them to achieve their long-term goals effectively.
"The Application of AI in the Healthcare Industry"
InferVision Strategic Vice President, Tong Wang: In the early stages of AI development, the public often viewed it with skepticism, questioning its reliability. However, since 2016, AI's integration into the commercial sector has undergone years of refinement. Initially, AI technologies aimed to provide doctors with superior tools, adapting commercial strategies—such as pricing and market positioning—based on user feedback. The central goal has always been ensuring the practical application of the technology.
Between 2018 and 2020, InferVision did not rush into commercialization but instead introduced its AI products to over 1,000 hospitals in China and 25 countries worldwide, enabling a broad user base to experience its solutions. Interestingly, early adopters of AI products were not top-tier specialists, who often doubted whether AI could surpass their expertise. Instead, AI gained traction in community hospitals, which frequently lacked the ability to interpret CT scans or identify diseases, such as distinguishing between solid and ground-glass nodules or assessing their risk levels. In these scenarios, AI proved to be a valuable enabler, providing significant assistance and driving product improvements to meet the evolving demands of the industry.
As the product’s capabilities advanced, AI gradually earned the trust of key opinion leaders (KOLs) and was incorporated into national and international medical guidelines. Its effectiveness was validated, and its usability in complex medical contexts was refined to better integrate with physicians’ workflows. This process involved extensive interactions with doctors and clinical practice, culminating in a more mature commercial product.
By 2021, InferVision officially began its commercialization efforts and has achieved remarkable progress over the past three years. Today, the company’s solutions are widely adopted in top-tier hospitals across China, with an increasing focus on extending their reach to grassroots healthcare facilities. Discussions at today’s forum explored numerous aspects of international expansion, highlighting the need for deep market understanding and strategic adaptation. For example, when considering the Indonesian market, it became apparent that concerns about lung nodules were less pronounced compared to other countries, likely due to limited access to basic medical facilities. This underscores the importance of first understanding the target market’s actual needs before formulating a tailored market strategy.
InferVision's product lineup is strategically adapted to align with the unique characteristics of different countries and healthcare markets. This involves precise market positioning and strategy development, including marketing plans and effective communication with partners and distribution channels. While the commercialization process continues, particularly in overseas markets, achieving accurate market positioning and clear insights remains critical to success.
"Key Factors and Strengthening Competitive Advantages"
Localization and Distributor Partnerships：Shan Yuge, founder of CASG (China-oriented Advanced Strategy Group), illustrated the importance of finding the right local distributors through a project in a Middle Eastern market. She highlighted the complexity of local market rules and the critical role of distributor networks. If distributor cooperation proves unsuccessful, she advises clients to decisively abandon certain national markets and focus resources on regions with greater potential.
ESG and Strategic Value：In sharing a case study of a sportswear brand's international expansion, Shan emphasized the significance of a company’s ESG (Environmental, Social, and Governance) rating in its global strategy. With CASG’s guidance, the company achieved a two-level improvement in its ESG rating within one year. This not only enabled the client to meet the high supply chain and environmental responsibility standards required in international markets but also significantly enhanced the brand’s premium positioning.
Responses to On-site Discussion Topics：Addressing specific audience questions, Shan noted that her team employs a comprehensive approach when helping businesses segment markets. This includes analyzing demographic structure, disease profiles, regions with high incidence rates, and healthcare resource distribution. These data points provide precise market selection and pricing strategies for clients. Furthermore, she stressed that regardless of the industry—be it energy, consumer goods, or healthcare—product localization and brand recognition are critical levers for successful international expansion.
"Balancing Cost Control and Drug Development"
Liu Xuejiao, Head of Business Development at Hybio Pharma: From the perspective of pharmaceutical companies, survival is the top priority. Balancing cost control with market strategies is a critical and practical challenge we face. In terms of cost control, our approach primarily involves tailoring our overseas product strategies to align with the purchasing power of target market consumers.
Take the U.S. market as an example: the U.S. operates within a well-established commercial insurance payment system. When entering such a market, we must account for its unique characteristics. These include high prices for original drugs and the opportunity to set relatively high initial pricing for early market entrants. At the same time, the complexity and difficulty of developing generic drugs in the U.S. are significant, with stringent regulatory requirements. To penetrate the U.S. market swiftly, we must focus on accelerating the R&D process, completing registration and approval quickly, and launching products to capture market share. Early entry allows us to maximize product value through higher pricing.
Once we enter the U.S. market, the next step is to scale up production. This mirrors strategies in less mature markets. When targeting regions with lower consumer or payment capacity, such as South America, India, or Russia, cost control becomes the top priority. Additionally, product portfolio strategies are essential. For instance, when entering the U.S., the focus is on promoting high-margin innovative drugs or first-to-market generics. Conversely, in economically underdeveloped regions, the priority shifts to basic medications and services rather than orphan drugs. This is part of our cost-control strategy, derived from practical market experience.
Furthermore, cost control is not limited to managing initial entry costs but extends to maintaining competitiveness through efficiency improvements and production cost reductions as the market scales. This reflects not only operational competence but also robust R&D and manufacturing capabilities. During market expansion, reducing costs and enhancing efficiency are closely tied to strong research, development, and production infrastructures.
Partnering with well-established and capable local collaborators is another commonly employed strategy for international market expansion.
"Specific Applications of AI in the Medical Field"
Wang Tong, Vice President of Strategy at InferVision: Currently, the application of artificial intelligence (AI) in medicine is primarily focused on two major areas: diagnostics and imaging. In diagnostics, AI plays a significant role in pathology and foundational diagnostic medicine, largely through text analysis. For example, AI can rapidly interpret health checkup reports using big data analysis, providing actionable recommendations and guiding patients to follow medical advice. Similarly, in imaging, AI technology has shown equally significant core applications.
Before delving deeper into this topic, defining AI will help clarify its medical applications. Early forms of AI were not labeled as such but were referred to as intelligence systems. Early intelligent algorithms relied on pattern matching. For instance, these systems identified known individuals, such as criminals, by comparing photographic features. This method depended heavily on database completeness, which often resulted in omissions due to database limitations. As databases grew, verification times increased, rendering such products less viable in the market.
Subsequently, logic-based deep learning and neural networks emerged. Using a simple analogy, deep learning works much like training a dog at home: rewarding correct behavior and correcting mistakes. This learning approach essentially teaches computers to make judgments based on internal reasoning, identifying patterns from otherwise unstructured data, and ultimately forming an algorithm. In China, particularly in the field of imaging and lung nodule screening, AI technology has been trained on data from millions of patients, enabling highly efficient identification of nodules in CT scans with an accuracy rate exceeding 99%, virtually eliminating missed or incorrect diagnoses. This application simplifies processes, reduces human interaction, and represents an upgrade in intelligent technology.
In recent years, AI has garnered significant attention due to advancements in large-scale models and the rapid evolution of industries. While medicine remains a highly precise discipline, AI applications are still in their early stages. In diagnostics, AI may already have achieved a high level of proficiency, while in imaging, it has reached a foundational level of commercialization. Looking ahead, AI technology will continue to evolve, with potential advancements such as AI-driven robotic surgery. In the past, performing tasks like suturing during laparoscopic procedures was exceedingly challenging. However, AI, by learning from extensive suturing techniques, could not only assist in surgeries but eventually perform basic operations independently. This vision forms a key part of future strategic development.
"Recommendations for Companies Expanding Globally"
Ms. Shan Yuge, Founder of CASG (China-oriented Advanced Strategy Group):
When expanding into international markets, companies need to have clear goals and act with careful consideration. She describes the three years surrounding 2024 as a "strategic preparation period" and recommends that businesses solidify their foundations during this time to face the narrowing phase of future market competition. She urges entrepreneurs to evaluate their competitiveness from a global perspective and strike a balance between regulatory compliance and differentiated positioning.
Ms. Liu Xuejiao, Director of Business Development at Hybio Pharma:
"Move steadily but swiftly, with a focus on the bigger picture." Currently, the products introduced by Chinese pharmaceutical companies to overseas markets often feature differentiation, innovation, high technical difficulty, or exceptional quality. These characteristics enable these products to enter and compete in international markets. My core belief is that, regardless of changes in external capital markets or international conditions, businesses must return to the essence of products and services. Only when a company's products are genuinely robust can it stabilize its operations and then pursue growth. Stability must be the foundational principle of business development.
Focusing on the bigger picture means that product planning, as a top-level design, is a critical factor in the success of global expansion. Drug development is a long-term process, and factors such as regional selection, product portfolio, registration strategies, and geopolitical considerations must be evaluated at the inception stage. By designing a comprehensive strategy for overseas expansion upfront, companies can find certainty amidst uncertain market changes.
Mr. Wang Tong, Vice President of Strategy at InferVision:
"Be determined and meticulous." First, we have the capability in China to create high-quality products. The competitiveness within Chinese companies is intense, and exploring international markets is a natural path for growth. This year, we aim to continue breaking new ground. In this process, we must acknowledge the many potential pitfalls in global expansion. Thus, registration processes, market research, and personnel management become critical factors.
For instance, in managing our Asia-Pacific operations, we faced a decision: should we hire ethnic Chinese professionals or local residents? Different management decisions directly impact whether our investments in the region can succeed. Therefore, attention to detail and thoughtful personnel decisions are crucial. We must ensure that our management strategies align with local market dynamics to effectively advance and implement our business goals.