An aging population with unmet medical needs is driving the Chinese government to invest in the rapid development of innovative sensing technologies. China’s domestic Diagnostic Industry is still immature, with the current market structure dominated by Western companies and multinationals. However, emerging Chinese firms are gathering to challenge the Western players in the sensor and diagnostic market, according to Lux Research.
In fact, the government is planning to jump start a homegrown industry, with stated goals in the 12th Five Year Plan (FYP) to improve overall healthcare, especially in rural areas, and increase fundings in a number of key sensing and diagnostic research areas. In the 2011-2012 funding period, $82.9 million was distributed in molecular, biochemical, immunological, and physical diagnostic spaces, and China will aldo spend an additional $103 million on basic research in the sector during the 12th FYP.
In other words, Chinese domestic companies are switching strateg from a “me-too,” go-to-market strategy based on low cost production, to novel solutions requiring long R&D cycles.
In the $1.5 billion Chinese medical imaging market, Mindray, Wandong, and Neusoft have a rising market share of 10% based on sophisticated product development strategies.
Moreover the Beijing Genomics Institute, which is claimed to be the world’s largest genome sequencing organization, is eyeing a big payoff by developing drugs specifically designed for Chinese and non-Caucasian populations, filling a gap left by U.S. drugmakers, based on recognizing differences in response to marketed drugs between different populations.
University research in China is finding its way into the business value chain. Beijing Largev Instrumentation, a developer of dental CT, was founded by Tsinghua University and Nuctech, and is a major player funded under the “key technologies and product development of major digital medical equipment” mandate for the 12th FYP (Five Year Plan).
Source : www.businesswire.com Publication date : 2013-03-05