The Current Market Scene of Hong Kong Medical and Healthcare Device Industries. Ir Prof Andros Chan Chairman - HKMHDIA

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1 The Current Market Scene of Hong Kong Medical and Healthcare Device Industries Ir Prof Andros Chan Chairman - HKMHDIA

2 Hong Kong Medical and Healthcare Device Industries Association (HKMHDIA) Incorporated in June 2003 to represent the interest of the medical & healthcare device industries in Hong Kong Members from the entire value chain in the medical and healthcare device industries including device manufacturers, design house, components manufacturers, distributors and companies which provide testing and certification services

3 Medical Device Industries

4 HKMHDIA - Mission To contribute to the local knowledge-based economy as an innovation and technology industry by servicing the medical and healthcare device industries in building internal competencies, setting and observing professional and industrial standards, publicizing our competitiveness locally and internationally, facilitating national and international cooperation in advancing the industries, and supporting and advising on Medical Device policies and regulations. As integral members of healthcare delivery, to ensure that safe and effective medical devices ultimately benefit the public.

5 HKMHDIA Manufacturing & commercialization partner

6 Organization Executive Board (17 Members, 3 Honorary Members) HKPC (Provide Industry Support Service) Honorary Advisors (9) Functional Panels (6) Corporate Communications External Relations Membership Affairs Product and Technology Development Quality and Regulatory Affairs Training and Education

7 Executive Board Name Company Chairman Ir Prof Andros Chan Besteam Consultants Limited Deputy Chairman Mr Benjamin Chan MediConcepts Limited Vice Chairman Ms Maria Chiang Chen Chien Holdings Limited Ms Martha Hao Defond Group Mr Otto To Vincent Medical Manufacturing Co., Ltd. Mr Fred Tung Johnson & Johnson (HK) Ltd. Treasurer Ms Teresa Li Kingsford Far East Limited Secretary General Ir Richard Lun ConXept Limited Executive Board Member Ir Dr William Cheung Allan International Holdings Limited Mr Mark Ho Pacific Medical Systems Mr Henry Lam Associated Medical Supplies Company Limited Mr James Li Mr Leo Lo Mr Rupert Mok Mr Kevin Orr Mr. Samson Tsoi Mr. Stephen Yeung Healthcare Technology International Limited, AML Group Euromed Technologies Co., Ltd. Medtechnoskorp Ltd. Winner Medical (Hong Kong) Limited L F Asia (Hong Kong) Limited Providence Enterprise Ltd

8 Honorary Appointments Name Company / Institution Honorary Chairman Prof John Chai Fook Tin Technologies Limited Prof John Mok Automatic Manufacturing Limited The late Mr. Albert Lee Honorary Board Members Mr Stephen Liang Hong Kong Trade Development Council Ir Derek Louie Hong Kong Productivity Council Mr Andrew Young Hong Kong Science and Technology Parks Corporation Honorary Advisors Prof King Chow The Hong Kong University of Science & Technology Dr Lilian Leong, BBS, JP Prof Arthur Mak The Chinese University of Hong Kong Prof. Ng, Simon Siu-Man The Chinese University of Hong Kong Ir Albert Poon Mr. Stephen Siu Prof. Min Wang The University of Hong Kong Prof Michael Yang City University of Hong Kong Prof Zheng Yongping The Hong Kong Polytechnic University Honorary Legal Advisor Mr Nicholas Chan Squire Patton Boggs Honorary Auditor RSM, Nelson Wheeler

9 Our Members Manufacturing Most are ISO or GMP certified For Class 1-3 medical devices Disposables, diagnostic devices, treatment devices, rehabilitation equipment etc Sterilization facilities Distribution Cover Asia Pacific and Greater China markets Well connected to end users Both local and MNC companies

10 Our Members Supporting Services Conformability Assessment Bodies Legal & IP protection Material suppliers Regulatory consultancy Logistics services

11 Strengths of Hong Kong Medical Device Industries

12 Strengths of Hong Kong Medical Device Industries

13 International exposures Strengths of Hong Kong Medical Device Industries Friendly environment for both business and technical professionals Abundance supply of high quality talent pools High academic research quality Legal system Patent & IP protection Solid base of foundation industries Electrical appliances, Consumer electronics, Precision machining, plastic, metal and electronic components Efficient proof-of-concept

14 Strengths of Hong Kong Medical Device Industries Solid manufacturing facilities in China Reasonable cost with high quality Free port and easy access of China market Distribution network in China & Asia Pacific Medical device regulatory support Innovation and Technology Fund

15 China s 13 th Five Years Plan 165 projects in the five years plan 4 segments related to medical device industry: Surgical robotic Superconductivity MR equipment, nuclear medicine imaging equipment Traditional Chinese medicine equipment Wearable equipment

16 Manpower requirement by strategic sector (the Six Industries),

17 Manpower requirement for Medical services Manpower requirement for Medical services is projected to increase from (2.1% of total employment) in 2009 to (2.3%) in 2015, or by an average annual growth rate of 3.0%. Such growth could mainly be attributable to : (a) The maintenance of essential service for the local community, particularly for children aged below five and the elderly; (b) The ageing of the Hong Kong population, resulting in an increase in demand for products and services on medical and health care; (c) The increasing utilisation of medical services and procurement of drugs by people of the Mainland; and (d) The further development of Chinese medicine.

18 Manpower requirement for Innovation and technology Within the Six Industries, Innovation and technology is expected to have the largest average annual growth rate (4.5%), with manpower requirement projected to increase from (0.8% of total employment) in 2009 to (0.9%) in The increase is likely to arise from : (a) The development of Hong Kong into a knowledge-based economy would support the investment in research and development (R&D) activities; (b) The growing demand of technology based products and services as well as the keen competition in the business segments, both of which will help drive companies to move up the value-added ladder through conducting more technological innovation activity; and (c) The support of Government on innovation and technology development would provide impetus to R&D activities which would have a positive impact on job creation.

19 Industry Features The medical and healthcare equipment industry has two distinct markets: Professional or institutional (hospitals and clinics) and Household consumer Most medical and healthcare equipment companies in Hong Kong are engaged in OEM and ODM

20 Industry Features With increased competitiveness in price and product development, the Chinese mainland is increasingly putting pressure on Hong Kong local companies, inducing them to strive for product and company re-positioning. Many Hong Kong-based companies also provide engineering design services in order to enhance their competitive edge

21 Industry Features Products with better growth prospects for Hong Kong manufacturers and distributors include Home-based equipment, Hygiene sterilized supplies, Equipment for less-invasive procedures, Minimum invasive surgical tools and devices, Orthopedic tools and devices, Devices and supplies for high health-risk diseases and injuries, and Wearable devices etc.

22 In-house Hong Kong / China Research and Development Research Infrastructure Hong Kong Science & Technology Park (HKSTP) Hong Kong Applied Science & Technology Research Institute (ASTRI) Hong Kong Productivity Council (HKPC) Nano & Advance Material Institute (NAMI) Overseas Technology Transfer

23 Universities Talent Pools The University of Hong Kong (HKU) The Chinese University of Hong Kong (CUHK) The Hong Kong University of Science and Technology (HKUST) The Hong Kong Polytechnic University (PolyU) The City University of Hong Kong (CityU)

24 Universities Talent Pools QS University Subject Ranking 2017 (Top 200) Medicine - HKU (34), CUHK (65) Biological Science HKU & HKUST (51-100) CUHK ( ) Computing Science HKUST (19), HKU (24), CUHK (35), PolyU & CityU (51-100) Electrical & Electronic Engineering - HKUST (29), CUHK (32), HKU (34), CityU & PolyU (51-100) Mechanical & Manufacturing Engineering - HKUST (23), HKU (42), PolyU & CUHK (51-100), CityU ( ) Material Science HKUST (23), CUHK, HKU & CityU (51-100)

25 Medical Device Research Clinical Excellence Two excellent medical schools Two clinical trial centers in two teaching hospitals Clinical data accepted by FDA, EMEA and CFDA Research Excellence High quality basic and applied researches Manufacturing Excellence Design, components, integration, sterilization, calibration Cost effective with high quality Professional services

26 Research Approaches Top Down RGC, ITF or university funded projects Journal papers, IP, Commercialization Bottom Up Market driven Commercialization Win-win Knowledge-based economy Mixed Approaches

27 Funding Technology Prototype Tooling Manufacturing Regulatory Distribution Marketing Potential Model Technology Transfer & Collaboration Technology Funding Marketing Distribution Regulatory Technology Technical Support Technology Clinical Trial Funding

28 Thank You

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