Opportunity and challenge of medical electronics

industry in Taiwan

Dr. Pin-tsun, ChaoAssociate ResearcherSTB programSTPI, NARL國家實驗研究院科技政策中心

Outline

Medical device industry Global/Taiwan

Opportunity and challenge of medical electronics industry IT GiantsTraditional Med-ElectronicTaiwan’s role

Myth of Telemedicine Some Suggestion

Medical device industry

Background

Aging Society

Source: U.S. Bureau ofa the Census ；工研院 IEK; 張慈映 工研院產經中心 (IEK) 生物科技產業與投資趨勢研習會 醫療器材產業發展現況與趨勢 2008

US healthcare cost

Source: 張慈映 工研院產經中心 (IEK) 生物科技產業與投資趨勢研習會 醫療器材產業發展現況與趨勢 2008

Global MD market growing

Annual growth > 8%

市場規模

1000120014001600180020002200

2004 2005 2006 2007 2008f 2009f 2010f

年份

億美金

資料來源： Espicom Business Intelligence (2006) ，工研院 IEK (2006/05)

Medical device category

MD companies on market

--0.84(1~6月)--台欣生物(4134)

興櫃4.68.41(1~6月)8.04(1~6月)杏昌(1788）

上市9.318.2416.69東貿(4104)

上櫃-10.32.522.81弘如洋（3266）

上櫃38.33.942.85大學光（3218）

通路經營

興櫃-10.41.98(1~6月)2.21(1~6月)三豐醫材(4116)

上櫃11.26.846.15太醫(4126)

上櫃8.94.784.39邦特(4107)

其他醫療器材產品

興櫃-7.00.53(1~6月)0.57(1~6月)普生(4117)

上櫃84.60.480.26晶宇生技(4131)

上櫃----0.34聯上生技(4113)

上市3.78.758.44五鼎生技(1733)

體外診斷

上櫃-5.24.404.64聯合骨科(4129)

上市-3.812.6713.17必翔實業(1729) 輔助與彌補

上櫃29.615.8112.20精華光學(1565)

上市26.311.919.43雃博(4106）手術與治療

興櫃------泰博科技 (4736)

上櫃24.33.993.21熱映光電(3373)

上櫃-32.28.0911.94優盛醫學(4121)

上櫃4.628.9027.63百略(4103)

上櫃-13.17.738.89合世生醫(1781)

診斷與監測

上市/櫃、興櫃與去年相比(%) 2008年前三季營收2007年前三季營收公司名稱所屬次產業類別

--0.84(1~6月)--台欣生物(4134)

興櫃4.68.41(1~6月)8.04(1~6月)杏昌(1788）

上市9.318.2416.69東貿(4104)

上櫃-10.32.522.81弘如洋（3266）

上櫃38.33.942.85大學光（3218）

通路經營

興櫃-10.41.98(1~6月)2.21(1~6月)三豐醫材(4116)

上櫃11.26.846.15太醫(4126)

上櫃8.94.784.39邦特(4107)

其他醫療器材產品

興櫃-7.00.53(1~6月)0.57(1~6月)普生(4117)

上櫃84.60.480.26晶宇生技(4131)

上櫃----0.34聯上生技(4113)

上市3.78.758.44五鼎生技(1733)

體外診斷

上櫃-5.24.404.64聯合骨科(4129)

上市-3.812.6713.17必翔實業(1729) 輔助與彌補

上櫃29.615.8112.20精華光學(1565)

上市26.311.919.43雃博(4106）手術與治療

興櫃------泰博科技 (4736)

上櫃24.33.993.21熱映光電(3373)

上櫃-32.28.0911.94優盛醫學(4121)

上櫃4.628.9027.63百略(4103)

上櫃-13.17.738.89合世生醫(1781)

診斷與監測

上市/櫃、興櫃與去年相比(%) 2008年前三季營收2007年前三季營收公司名稱所屬次產業類別

Opportunity and challenge of medical electronics market

Opportunity

Due to the growing aged people, the ME market is also growing!

Opportunity for who?

More IT companies want to join this field.

Why IT industry want get in Medical ?Looking for new applicationMedical product

High margin Longer Product Lifetime Endless need

What other IT giants thinks

Almost all IT giants (HW/SW/IC) declared to enter medical market or initialized medical-related development IntelMicrosoftTexas Instrument

Intel

Intel

World leading CPU/IC manufacturerHave latest technology for manufacture ICMoore’s Law45nm/32nm

Why Intel want to get in

medical market ? Grow our markets: supply computing and

communications technologies to a broadly defined home health & wellness market which is poised for massive growth worldwide

Healthy workforce: insure our own 80,000 employees worldwide have tools, technologies, and training to care for their own aging parents

Healthy economy for business: catalyze new paradigms of health care to head off looming worldwide economic crisis from high-cost, clinic-centric care that cannot scale to meet the needs of the age wave

We will never be a healthcare company. We will never be a healthcare company. We supply technology ingredients. But We supply technology ingredients. But we continue to lead R&D in new areas. we continue to lead R&D in new areas. And some new players will shape next And some new players will shape next generation technologies for the next generation technologies for the next

generation of seniors. generation of seniors. Source: Intel

Development Strategy

Join policy / standard associationDevice interoperability standards Personal health records Medical information standards

Intel is committed to understanding the needs of healthcare professionals, as well as anticipating and responding to future needs.

Early start

Start from 1999, Intel researchers began focusing on healthcare needs and how technology could address them

In 2002, Intel established Proactive Health Lab, to explore new technologies that will help people to proactively manage their health and wellness, to prevent or delay the onset of disease.

2 focus

IT in healthcare help healthcare enterprise run more efficiently and

effectively healthcare system, hospital, clinic, biopharma compa

ny, payor, government agency, or ministry of health.

Personal telehealth challenges ahead

Patients remain at home Patients and clinicians work together to achieve the b

est outcomes Patients are viewed in their totality, including their he

alth status, as well as their social network, and their individual capabilities and preferences

The evolution of remote patient monitoring

http://www.intel.com/healthcare/pdf/RPM6_12.pdf

Gotten FDA clearance for a health monitor which can interface with wired or wireless health measurement devices such as glucose meters and blood pressure cuffs in July,2008

“Health care is the mother of all big businesses …. this is life and death—some people will get access to this ‘health-care mainframe,’ and everybody else dies.”

- Andy Grove

Source: “Intel's Andy Grove: The Next Battles in Tech: The IT visionary says tech needsSource: “Intel's Andy Grove: The Next Battles in Tech: The IT visionary says tech needs to learn to think bigger,” by Brent Schlender, FORTUNE, Monday, April 28, 2003 to learn to think bigger,” by Brent Schlender, FORTUNE, Monday, April 28, 2003

Microsoft

Microsoft + Healthcare is Growing

1995 Microsoft Healthcare Team Established 1999 MSN health&fitness releases 2005 Health Solutions Group

(HSG) 2006 Acquisition of Azyxxi* from WHC 2007 Acquisition of Global Care Solutions, Acqui

sition of Medstory* 2008 Amalga*, Amalga hospital IT system (Amal

ga HIS), and HealthVault launched

•Peter Neupert as Corporate Vice President, Health Solutions Group•Azyxxi: 醫療（病歷）資料庫軟體，是一種數據瀏覽引擎（外號：醫院的 Google）。•Medstory: 另一個医疗健康类垂直搜索引擎 •Amalga 醫療企業系統 : 前身是 Azyxxi 產品的新版本 .

Insight Microsoft Healthcare and Life Sciences group

The Microsoft Healthcare and Life Sciences group is 10+ year of service to the industry.

180 Microsoft employees dedicated to this group. $6.8 billion in R&D investment annually. Team members include doctors, nurses,

pharmacists, and other clinical staff with experience working for healthcare and life sciences organizations.

The Microsoft Healthcare and Life Sciences group is made up of five subcategories to better address the specific needs of each industry: providers, health plans, pharmaceuticals, biotechnology, and medical devices.

Microsoft Health Solutions

The platform (Microsoft .NET Microsoft Amalga Microsoft Dynamics Microsoft Office System

Microsoft Windows Client Windows Mobile Windows Server System)

Microsoft Health Future Vision

TI

Texas Instruments

Texas Instruments develops analog, digital signal processing, RF semiconductor technologies.

Core technology Analog: high-performance analog (includes standard power

management products, data converters, amplifiers and interface products), high-volume analog & logic

Embedded Processing: DSPs and microcontrollers used in catalog, communications infrastructure and automotive applications

Wireless: DSPs and analog used in basebands, OMAP(TM) applications processors and connectivity products for handsets

Other: DLP(R) products, calculators, RISC microprocessors, ASIC products, royalties

TI’s path into medical device

In 90s, they have develop some ICs for medical imaging, ultrasound, etc.

In 2006form a medical electronic department

Develop less power consumption, lower cost, smaller size product for medical applications

Focus on SoC (system on chip) and wireless

ISO/IEEE 11073 Point of Care Medical Device Communication

Standards

Join Continua Health Continua Health Alliance

comprised of technology medical device and health care industry leaders dedicated to making personal tele-health a reality.

Continua Health Alliance

TI’s strategy in medical electronics

TI’s Vision for medical electronics

Short conclusion of IT giants

All IT giants start from their core competence

Closely cooperate with health care provider—doctor, nurses, physicians

From hospital to home, gradually

What about other traditional medical electronics company?

How about GE/Philips/Siemens?

They are not pure IT/electronic companies All had long history working on medical

electronic device They had key advanced element/ technique

GE invented CT in 1975 Philips manufacture X-ray tube in 1896 Siemens had first wholly commercial particle

therapy project in Germany

Their vision can be viewed as the next generation of landmark

GE vision: Early health

Early health is focused on enabling earlier diagnosis and more effective treatment of disease.Cancer

PET/CT Mammography

Cardiac Ultrasound High-speed CT

http://www.ge.com/innovation/health/index.html

Philips Medical

More than in hospital or lab

Lifeline Home Respiratory Remote Cardiac Services HeartStart Home Defibrillator

Siemens:

Ultimately enhancing patient care Medical imaging Therapy Laboratory diagnostics Healthcare IT solutions

Chance for Taiwan IT?

Chances/challenges for Taiwan IT?

What can we do?OEM? BP monitor? Thermometer?

Fight directly with Large MD company?Need too much source Lack of core technique

Follow IT Giants?Lack of brand

Chance for Taiwan?

Which way?

Source: 張慈映 工研院產經中心 (IEK) 生物科技產業與投資趨勢研習會 醫療器材產業發展現況與趨勢 2008

Given Diagnostic Imaging SystemGiven Diagnostic Imaging System

http://www.givenimaging.com/

Approved August 1, 2001

Capsule endoscope

Fetal movement detection

Biopad Founded in 2004 Have raised $3 million

provide (a) the baby's activity is

within normal range (b) fetal movement has

declined and that she should see her clinician

Mother will use the disposable pads (up to three times a day) for a period of 20 minutes each time

http://www.biopad.com/

Learn from Israel

What did they do?Solve problems that bother doctors or pati

ents Endoscope vs capsule Long time measurement of fetal movement

Provide value

Another example but not ME: Fitbit

Fitbit automatically tracks your fitness and sleep

WEAR

                                                                       

                        

SYNC

                                                                                  

VIEW

                                                                                                                

Fitbit

raised $2 million in 2008 Oct uses the information it gathers about your

movement to help you determine how much exercise you've been getting and how many calories you've burnt.

It can also tell you how many steps you have taken and how well you've slept, all based on its internal motion detector

So What can Taiwan IT do?

OEM is easier, familiar, faster to make money

But not a long term choice Try to solve some “clinical” and

“urgent need” problem!

Myth of Telemedicine

Source: http://research.microsoft.com/en-us/um/redmond/events/fs2007/presentations/oliver_nuria_faculty_summit_071607.ppt

Our Myth

Telemedicine(TM)

=ECG/EEG/BP + PC/cell phone/NB/PDA

Telemedicine

Telemedicine=tele+medicineTele: use nowadays tech to achieve. Ex:wireles

sMedicine: detect+diagnosis+treatment

Should be more than “device”! “Health care provider” and “Service” will b

e the most important part!

Cheng-shin Hospital (振興 )

Card Guard Phonic ECG(護心卡 )

Since 2006, 483 patients complete 6591 data transmission.96%:OK2.4%:On-line check1.4%:ER0.2%:OPD

Telemedicine

AdvantageCost reducedHospital bed days reduced

Obstacle & RiskNo successful business model yetReimbursementTraining/manpowerPrivacy problemPatient’s and healthcare providers’ attitude

Policy on ME

What did government do?

Industry南部生技醫療器材產業聚落發展計畫智慧型醫療電子產業技術推廣與輔導計畫新竹生醫園區計畫

Manpower工研院伯樂計畫工業局醫療器材法規人才培訓計畫台灣史丹福醫療器材人才培訓計畫

Some suggestion

Some suggestion

Opportunity of medical electronics Don’t follow old OEM ways! Taiwan is innovative, just need a suitab

le circumstance Before join medical electronic industry

make sure you have talk to health provider!

Thanks for your attention!