Australian medical devices seeking new markets in Asia

The scale and pace of Asia’s transformation in recent years is unprecedented and provides opportunities and challenges as Australian companies seek to respond to the rising demands for medical devices in Asia.

Asian countries present fast-growing markets via their expanding middle classes and economic growth. The size of the markets, such as China, are of interest to the Australian medical devices industry and its global orientation.

This transformation prompted the Australian Government to release the Australia in the Asian Century White Paper (October 2012), which was commissioned to analyse economic and strategic changes in Asia and what can be done to position Australia to participate in the opportunities within the region.

China has made a clear commitment to develop life sciences, with biotechnology one of seven priority industries in China’s 10th Five-Year Plan. China recently announced expenditure of $9.2 billion on technological research and development, with the biotechnology sector highlighted as a major funding recipient. China is keen to develop its science, technology or innovation, and wants to focus on developing intellectual property through partnering and investing. Australia has the talent, technologies and right business acumen to meet these needs. The partnering and investment opportunities between Australia and Asia, particularly China and Hong Kong, are compelling.

China’s healthcare sector is developing at an astonishing rate. Spending is projected to grow from AU$357 billion in 2011 to AU$1 trillion in 2020. The Ministry of Health’s ‘Health China 2020 Strategy’ calls for investment of AU$62 billion in the health system.

But there are barriers too. Aside from the obvious cultural and language differences, the intellectual property landscape is quite different from that in Australia and different business structure types adds to the list.

AusBiotech has been working in the Asian region on a small scale for many years, and recognising the importance of this region as a life science growth hub, has this year ramped up efforts. AusBiotech has won a federal grant to conduct the ‘Australian Medical Devices & Diagnostics to China’ project, which aims to facilitate medical devices trade with China by breaking down the major barriers to entry. This activity received funding from the Australian Trade Commission as part of the Asian Century Business Engagement Plan and the project application was made with partners FB Rice, Deloitte and the Burnet Institute.

It will result in much-needed information for Australian companies about intellectual property (IP) management in China and outline the types of business structures that are possible for Australian companies entering China for the first time.

The project will produce an extensive report and a training module for Australian companies seeking to establish markets and/or businesses in China. It will also include an AusBiotech-led business mission to China in 2016 of Australian companies.

The project is to be delivered via AusBiotech’s AusMedtech and will be guided by a selected committee of industry experts from Australia and China and phased over three years.

AusBiotech will be conducting and scoping a research project initially to determine the more detailed needs of Australian medical device and diagnostic companies.

For further information, please contact Project Manager, Lorraine Chiroiu, Communications Manager, AusBiotech (lchiroiu@ausbiotech.org).

Image: Dr Anna Lavelle, CEO, Ausbiotech.