Chinese Medical Device Market SinaMed Consulting Hao Wu

Agenda Introduction to SinaMed Consulting Overview of the Chinese Market SinaMed Service offering Questions and Answers

Introduction to SinaMed Consulting

Overview of the Chinese Market

SinaMed Service offering

Questions and Answers

SinaMed Consulting Vision: To be the premier choice for foreign market entry consulting in the medical device industry for North America and Europe Members Hao Wu Timothy Fung Eric Hu Why we form this company

Vision:

To be the premier choice for foreign market entry consulting in the medical device industry for North America and Europe

Members

Hao Wu

Timothy Fung

Eric Hu

Why we form this company

Summary General information of Chinese Market How to calculate potential market size for your company Uniqueness of the Chinese Market

General information of Chinese Market

How to calculate potential market size for your company

Uniqueness of the Chinese Market

General information 13,530 domestic medical device manufactures 144,977 distribution agencies Employees: 440,000 Gross Industrial Output Value: 168.6 billion RMB ( 24.1 billion US$) in 2007 11,724 medical devices registered in 2007 2, 045 imported medical devices Source: www.sfda.com.cn

13,530 domestic medical device manufactures

144,977 distribution agencies

Employees: 440,000

Gross Industrial Output Value: 168.6 billion RMB ( 24.1 billion US$) in 2007

11,724 medical devices registered in 2007

2, 045 imported medical devices

General information Achievements of the industry in 2007 Gross industrial output value: 24.1 billion, growth rate 29% Sales revenue 23.2 billion, growth rate 29% Gross profit 2.2 billion, growth rate 32% Exports + Imports: 12.7 billion, growth rate 20% Imports 4.28 billion, growth rate 16% Source: CMDA Annual Report

Achievements of the industry in 2007

Gross industrial output value: 24.1 billion,

growth rate 29%

Sales revenue 23.2 billion, growth rate 29%

Gross profit 2.2 billion, growth rate 32%

Exports + Imports: 12.7 billion, growth rate 20%

Imports 4.28 billion, growth rate 16%

General Information 76% Beijing Shanghai Guangzhou

Your potential Market Source: China Health Villages & Towns Urban Area Tier 3 Hospital No. of Hospital Tier 2 Hospital Tier 1 Hospital Unrated Hospital 686 5156 2714 9887

Your potential Market Tier 3-A Hospital 10,000 operation/year/hospital 1,000 beds/hospital 100 hospitals in each of the 3 areas 10 hospital/central city More than 70% medical devices in Tier 3-A hospitals are from oversea companies 2 billion US$ in 2007

Tier 3-A Hospital

10,000 operation/year/hospital

1,000 beds/hospital

100 hospitals in each of the 3 areas

10 hospital/central city

More than 70% medical devices in Tier 3-A hospitals are from oversea companies

2 billion US$ in 2007

Your potential Market Orthopaedic surgery medical device company: 16% growth of Imported medical device: 10,000 operation/hospital X 20% = 2,000 Orthopaedic surgery 2,000 X 16%growth = 320 operations 320 X 10hospitals = 3,200 operations, one city 3,200 X 5cities = 16,000 operations, one area(Shanghai) 16, 000/4 = 4,000 operations (4%)

Orthopaedic surgery medical device company:

16% growth of Imported medical device:

10,000 operation/hospital X 20% = 2,000 Orthopaedic surgery

2,000 X 16%growth = 320 operations

320 X 10hospitals = 3,200 operations, one city

3,200 X 5cities = 16,000 operations, one area(Shanghai)

16, 000/4 = 4,000 operations (4%)

Uniqueness of China SFDA Lengthy 18~24 months All imported medical devices: Class III Clinical trials Strategy of accelerating the process A good agent Intact paperwork US, Europe, Canada registration

SFDA

Lengthy 18~24 months

All imported medical devices: Class III

Clinical trials

Strategy of accelerating the process

A good agent

Intact paperwork

US, Europe, Canada registration

Uniqueness of China Distributor Negotiation Education Culture and language barriers IP protection

Distributor

Negotiation

Education

Culture and language barriers

IP protection

SinaMed Consulting Our service offerings Market Analysis Registration for SFDA Distributor Selection Distributor Negotiations / Contract

Our service offerings

Market Analysis

Registration for SFDA

Distributor Selection

Distributor Negotiations / Contract

Market Analysis Attractiveness of the Market for your product SWOT / PESTLE analysis Competitor Analysis

Attractiveness of the Market for your product

SWOT / PESTLE analysis

Competitor Analysis

Registration for SFDA 18 – 24 months Work with a reputable local registration company Monitor and update on status of regisition We work with you

18 – 24 months

Work with a reputable local registration company

Monitor and update on status of regisition

We work with you

Distributor Selection Currently have over 30 partner distributors Alignment of Distributor characteristics to your needs Expertise, revenue, reputation, relationship, passion Meeting potential distributors Mutual long term relationship that promotes growth for all stakeholders involved

Currently have over 30 partner distributors

Alignment of Distributor characteristics to your needs

Expertise, revenue, reputation, relationship, passion

Meeting potential distributors

Mutual long term relationship that promotes growth for all stakeholders involved

Negotiations / Contracts Discussion on terms of engagement Payment structure/credit line Price Professional training Logistics Exclusivity / geographic coverage

Discussion on terms of engagement

Payment structure/credit line

Price

Professional training

Logistics

Exclusivity / geographic coverage

SinaMed Consulting China is a growing market – 16% Foreign manufactured products are highly regarded Competition is moving The time is now and we can help!

China is a growing market – 16%

Foreign manufactured products are highly regarded

Competition is moving

The time is now and we can help!

Questions?