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by Simranjit Singh & Sundeep Shrivastava
Medical Devices & Diagnostics Quintiles Asia-Pacific
Seizing Opportunity in Asia-Pacific’s
Complex and Rapidly Changing
Medical Device Market
A
sia-Pacific is the world’s fastest growing biopharmaceutical
market – a diverse “market of markets” that holds great
potential because of its expanding economies, huge and
growing population, and vast number of patients with poorly met
or unmet medical needs.
The region’s potential for medical device development and
commercialisation is no exception. But even more so than in
biopharma development, the region’s medical device regulatory
market is complex, diverse and rapidly changing. To seize the
opportunities in this market segment, companies must be keenly
aware of what’s changed or is about to change.
In China, for example, there is promising new approval
path for developers to deliver new products to market ahead of
their competitors – but only if they can present clear evidence
demonstrating the device can meet the China Food and Drug
Administration (CFDA) strict approval criteria.
In South Korea, the latest change is a new requirement for
product registration which mandates clinical data for certain devices
that fall under the Class IV (high-risk classification) [1]. Companies
that first become aware of this new rule and can formulate best-in-
class methods for compliance have a clear-cut advantage over others.
These and other changes in Asia-Pacific mean that companies
must not only keep up, but also to think ahead, plan, and act
accordingly. This is the proverbial competitive edge.
Understanding untapped potential
There has been a significant increase in the number of device trials
in the region over the past decade – a 96 percent increase from
238 in 2009 to 467 in 2014 [2]. The device market in the region is
expanding at a compound annual growth rate (CAGR) of 6 percent [3-
5]. This reflects the region’s huge potential. The current commercial
value of the Asia-Pacific medical device and diagnostics market is
estimated at USD $60 billion [3] and is expected to reach USD$112
billion by 2019 [6].
The chart below illustrates the year-on-year growth in device
trials from 2009 to 2014.
APAC: Medical Device Trials
Open MDD APAC Trial Volumes, 2009 – 2014
Japan and China, followed by South Korea, lead the region in terms of the
number of device trials [7] (2014 data).
Source: the chart is adapted from Ref. 2
Medical Device and Delivery
Number of Asia Pacific device trials by country / region for 2014
(467 total)

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Challenges to overcome
Despite clear potential presented by region, it is not devoid of
challenges. At a macro level, it is essential to understand individual
country cultures and unmet medical needs.
Second is Asia-Pacific’s diverse, fast-changing and complex
regulatory environment. Compared to regulation for drugs, device
regulations in this region are still relatively new, continuously
evolving, and fragmented across markets.
Last, the region also presents micro-level challenges such
as ones around payer expectations. Expectations around costs
associated with healthcare and reimbursement models are driven
by government policy. Markets like Japan, New Zealand, and
Thailand offer universal health coverage. Healthcare spending by the
government in these countries is at 80 percent, whereas less than
40 percent of government healthcare spend in markets like India,
Indonesia, and the Philippines [8].
Need for expertise and agility
Addressing these challenges requires a broad footprint in Asia-Pacific;
a deep understanding of each market; an understanding of current
regulations and changes that are occurring; and agility and flexibility.
These often-paradoxical characteristics are incredibly hard to find
within a single organisation.
That’s why one way for device companies to break down
regional complexities and capitalise on advantages is engaging in
strategic partnerships or outsourcing.
At its most basic level, outsourcing offers an attractive
option for device makers to spread risk and share responsibility
with a partner. Outsourcing also allows companies to quickly
access expertise in unfamiliar markets and complicated regulatory
environments. At an operational level, it provides the bandwidth
needed to stay on top of constantly changing market scenarios and
allows for agility in executing on strategy.
Appropriate partner selection, then, becomes a critical first
step in the outsourcing process. Related to this, we find two vital
areas sponsors should consider when selecting the right partner.

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To counter regional challenges in this space, regulatory
expertise, becomes the first point of consideration. We believe it is
imperative for a partner to have a thorough understanding of the
regulatory environment, stay on top of its ongoing transformation,
and be able to adapt business strategies to address changes.
An example of the evolving device regulation environment is
China’s recent Clinical Evaluation Report (CER) process. Currently
there are five paths to registration for Class II and Class III medical
devices (the highest in terms of risk of China’s three medical device
classes):
1. Devices listed in the CFDA’s “Catalogue of Medical Devices
Exempted from Clinical Trials” could be exempted and proceed
to registration.
2. The applicant conducts a traditional in-country trial to
demonstrate safety and performance of the device.
3. The applicant provides non-clinical evidence of the new device
to demonstrate safety and performance of the device.
4. The applicant conducts a study, using and analysing foreign
(i.e. outside China) pre-registration clinical trial data in either
the origin country or license-holder country, to prove no
difference in populations of different ethnic makeup.
5. The applicant (under new rules that took effect in May 2015)
assembles a clinical evaluation report (CER) demonstrating
substantial equivalence to an approved device, including the
composition, material, and safety and performance requirements.
For devices not included in the first path (listed in the
catalogue), the fifth option is by far the fastest, most economical
and feasible. It is especially useful for companies bringing new
iterations of existing devices to market because they can use the
first-generation product as the comparator.
However to be approved for this path, developers have to
produce a comprehensive CER that provides clear clinical evidence
establishing the safety and performance of the device.
The CER required by the CFDA is mainly based on US Food and
Drug Administration (FDA) guidelines to demonstrate substantial
equivalence, as well as biostatistical and meta-analysis used for CER
registrations in the EU. But the resulting guidelines are unique to
China, and clearly lay out what companies need to compile to avoid
a full clinical trial as part of the registration process.
To meet the criteria of the CER for these guidelines, developers
need to assemble a team of experts that includes:
• A biostatistician who, using data collected from related trials
worldwide, can create a profile demonstrating that the safety
and performance measures fall within an acceptable range to
the comparator. The biostatistician also conducts a meta-analysis
to analyse data quantity and quality.
• A regulatory expert who understands the regulatory environment
in China and the country of origin for the device, and can guide
the team in gathering the evidence that will be required to
support approval.
• A medical writer who has the expertise to conduct a global
literature review and assemble the data from related trials
conducted anywhere in the world. This piece of the CER is critical
for collecting the necessary data to demonstrate equivalence
related to safety, performance and efficacy.
Ideally, medical device manufacturers should assemble the
expert team early in the development process and conduct a gap
analysis to determine whether the device can meet the strict criteria
for a CER approval path. This is especially important if there is
any question as to whether there is an appropriate comparator to
demonstrate equivalence, or if the new device varies significantly
from the original.
In many cases, organisations might not have all three of these
skill sets in-house, and have to work with a third party provider who
has the depth of expertise to deliver an effective CER as efficiently
as possible.
This new guideline can deliver a significant competitive
advantage for device manufacturers interested in bringing new
products to market in China, but only if the companies get it right.
A well-developed CER that takes all of the regulatory, biostatistical
and literature review requirements into account, will increase the
chance of approval by the CFDA, ensuring developers generate the
most market value for their product.
The CER essentially aims to shorten the timeline for product
launches in China by providing substantial equivalent device clinical
data.
Bringing it all together
Asia-Pacific is brimming with potential. At the same time, we
observe key challenges in the region including a complex regulatory
landscape, cultural diversity, and variable healthcare models across
markets.
This dichotomy mandates device makers to carefully tread
the line between risk and reward – meeting the medical needs of
a growing population, while adhering to unique market rules and
requirements. It also requires a high degree of connectivity, i.e.
staying on top of constant market changes; and being agile –quickly
and accurately executing strategies in a rapidly changing, multi-
faceted market.
One pathway for device makers to achieve all of the above is by
outsourcing. Partnering with experts who fill critical knowledge gaps,
keep track of ever-changing landscapes, and ultimately, bringing
a product to market in the safest, most efficient, and timely way.

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References:
1. http://www.raps.org/Regulatory-Focus/News/2015/03/17/21746/South-Korean-Regulators-to-Require-Clinical-Data-for-Many-
Class-IV-Medical-Devices/
2. Biopharm Clinical, Clearstate CROScape 2014 and Quintiles internal data
3. https://www.aplcare.com/sites/default/files/MP54%20Feature%20Story.pdf
4. http://www.pacificbridgemedical.com/publication/asias-growing-medical-device-market/
5. http://www.slideshare.net/UBMCanon/am13-asia-pacificinfographic
6. “BMI Special Report Asia Pacific Medical Market Forecasts to 2019.” Business Monitor International, October 2014
7. Journal of AusBiotech, March 2015, Vol 25, Clearstate , Biopharm Clinical (2009– Sept 2014)
8. McKinsey & Company, “MedTech in Asia, Committing at scale to raise standards of care for patients,” December 2015
About the Authors
Mr. Singh leads the Medical Devices & Diagnostics business in Asia- Pacific for Quintiles. He is responsible for
providing solutions to help medical device companies enhance their R&D activities in the region, and has been
instrumental in putting together Quintiles’ strategic partnerships with several medical device companies in Asia.
Prior to joining Quintiles, he spent six years as the Director of Healthcare Consulting at Frost & Sullivan,
where he managed its Asia-Pacific healthcare practice and implemented several strategic consulting projects
for multinational and local medical device companies to develop their R&D and manufacturing operations in Asia; support their merger
and acquisition strategies; and increase their market penetration. Mr. Singh also serves as chairman for BioSingapore, an industry
association that plays an integral role in developing the biomedical sector in Singapore.
Mr. Singh holds a bachelor’s degree in biomedical sciences from the National University of Singapore and earned his MBA from
the Graduate School of Business, University of Chicago. He also has a graduate diploma in bio-entrepreneurship from the University
of Pennsylvania.
Mr. Shrivastava is responsible for advancing Quintiles’ Medical Devices & Diagnostics business in Asia-
Pacific. He has more than 18 years’ experience in leading business operations and clinical research projects
involving medical devices, including pivotal first-in-human studies and post-marketing studies in Asia and
the European Union.
Prior to joining Quintiles, Mr. Shrivastava held key positions in the areas of clinical research, portfolio
management and marketing and business development with Guidant Corporation and Abbott Vascular. He
has extensive experience in coordinating with local regulatory bodies regarding approvals for clinical studies and to commercialize
products in Asia.
He earned his bachelor’s degree in statistics from the University of Bhopal and his MBA from the International Management
Institute, New Delhi.
Sundeep Shrivastava
Director, Medical Devices & Diagnostics Quintiles Asia-Pacific
Simranjit Singh
General Manager, Medical Devices & Diagnostics Quintiles Asia-Pacific