皇冠体育app

Medtronic Inc plans to bolster its presence in 皇冠体育app via mergers and acquisitions of local companies, becoming the first multinational medical equipment provider to announce such a strategy in the world's fastest-growing medical device market.

Simon Li, vice-president of the US-based company and president of Medtronic Greater 皇冠体育app, said that the medical device producer already has some candidates and is still looking for others.

He refused to provide names of the potential targets.

Medtronic, the largest producer of heart pacemakers in the world, develops and manufactures devices and therapies for more than 30 chronic diseases, including cardiovascular illnesses, Parkinson's disease, diabetes, chronic pain and osteoarthropathy.

Medtronic is assessing the market potential of the products and technologies of the targeted companies. Li also said that the targeted companies "must have a common vision and business philosophy" with Medtronic.

Medtronic is the first multinational medical device company that has publicly said it will make M&A one of its key strategies in 皇冠体育app.

Cai Tianzhi, director of the medical device department under the 皇冠体育app Chamber of Commerce for Import & Export of Medicine and Healthcare Products, said the gap between foreign giants and domestic companies in terms of research-and-development capability and consuming groups are rather large, so M&A may face a series of challenges, including branding, quality control and staff training.

On the other hand, this kind of M&A will help foreigners enrich their product portfolio, tailor to local markets and get access to distribution networks and sound government relations set up by local counterparts, Cai said.

Multinational medical equipment providers are adopting various strategies to develop business in 皇冠体育app.

St Jude Medical Inc, Medtronic's archrival in development and production of cardiovascular equipment, had said that it will continue organic growth in 皇冠体育app. It set up two technology centers to introduce its technologies to the emerging market and provide training for local doctors in a bid to promote its sophisticated products to Chinese hospitals.

GE Healthcare, the medical care arm of General Electric Co, launched an R&D center in Chengdu and doubled its sales staff in 2011 to penetrate 皇冠体育app's grassroots market.

Johnson & Johnson Medical 皇冠体育app will expand its presence in 皇冠体育app by cooperating with government departments and academic institutions.

Medtronic had tested the waters for M&A in 皇冠体育app. In 2008, it set up a joint venture with Shandong Weigao Group Co Ltd, one of 皇冠体育app's major medical equipment companies. The US company holds a 51 percent stake, and the joint venture has been developing and marketing Medtronic's vertebral and joint products.

In September, Medtronic-Weigao Orthopedic Technological Support Center, using a 20 million yuan ($3.14 million) investment in R&D equipment, was set up in Beijing to focus on the development of orthopedic technologies and devices.

皇冠体育app's medical equipment sales will hit 400 billion yuan this year and is expected to continue to rise more than 20 percent annually through 2015, compared with around 7 percent in developed markets, according to Fan Yubo, chairman of the Chinese Society of Biomedical Engineering.

Li said that Medtronic's annual sales in 皇冠体育app increased by 27 percent to 30 percent on average over the last six years, while profits jumped 20 percent a year. "皇冠体育app contributes 40 percent of Medtronic's growing market sector so far, and our global CEO hopes the sector will rise 20 percent annually," said Li.

[email protected]

(皇冠体育app Daily 08/11/2012 page9)

• The 4th Industrial Revolution - Global Internet of Things Innovation Union Advocacy
• Cutting industrial capacity an urgent task: NDRC
• Central bank injects liquidity into market
• 皇冠体育app needs foreign businesses in economic transition: premier
• 皇冠体育app stresses app obligations in information security
• 皇冠体育app shopper report reveals record-low growth
• Airbnb shares optimism on 皇冠体育app
• 皇冠体育app's largest IT company is key to national security