Medtronic group, the world’s largest medical device company, is considering increasing the manufacturing scale of its core cardiovascular devices in China. The first financial reporter learned on February 11 that Medtronic will invest hundreds of millions of yuan in Shanghai Lingang Holdings Co.Ltd(600848) to establish relevant product lines.
As the first top 500 biomedical enterprise to invest in port, Medtronic invested its core business manufacturing in China for the first time, which also marks that foreign-funded high-end medical device products have entered a new era of local R & D and localization in China.
According to the information disclosed by the port side, the initial investment of Medtronic port project is about 300 million yuan, which is used to build the R & D and industrialization of cardiovascular disease related products. The plant of the project is expected to be delivered in June this year. It will be put into operation within five years after delivery. It is expected to reach production in the third year after production. After that, the annual output value is expected to be about 300 million yuan.
It is worth noting that in December last year, Xianjian technology, a Chinese interventional medical device company, reached an agreement with Medtronic to further expand the cooperation of “Xintong” domestic cardiac pacemaker project. The two sides will start the project cooperation of domestic nuclear magnetic compatible pacing system, promote the rapid commercialization of new cooperative products in the Chinese market and meet the growing treatment needs.
Heart rhythm and heart failure (crhf) is Medtronic’s largest business segment in the world. The latest financial report released in 2021 showed that Medtronic’s cardiovascular business had an annual revenue of US $10.772 billion, a year-on-year increase of 2.9%; Among them, the revenue of heart rhythm and heart failure business was US $5.584 billion, a year-on-year increase of 8.6%. Affected by the epidemic, Medtronic coronary and structural heart disease (CSH) revenue decreased by 0.3% year-on-year to US $2.834 billion.
Geoff Martha, Medtronic’s Global CEO, said at the earnings conference: “we are preparing for the long-term development of the cardiovascular field and will implement a new operation model to create and subvert in large markets while occupying more market share.”
As the world’s largest cardiovascular patient market, China is of great importance to medical device companies. Medtronic has continuously increased its localization investment in recent years, from “Medtronic China” to “Medtronic China”.
Gu yushao, senior vice president of Medtronic worldwide and President of Greater China, said in an exclusive interview with China business news recently: “China’s medical market has huge unmet rigid needs. In the future, China will not only become the world’s largest medical device market, but also become one of the important sources of innovation of global medical devices. Medtronic will promote the local research, development and production plan of high-end product lines in China.”
According to the white paper 2021 on the innovation of China’s cardiovascular medical device industry, the global cardiac rhythm management device market will reach US $15.7 billion in 2020. The market is highly concentrated, and Medtronic, St. Juda and Boston science account for more than 80% of the market.
However, the market share of domestic pacemakers in China is still very small. The first financial reporter learned that among the 100000 pacemakers installed in China every year, domestic pacemakers account for about 5%. At present, only a few enterprises in China, such as Lepu, Xianjian technology and Chuangling heart rhythm medicine, are engaged in relevant product R & D.
Medtronic cooperated with Xianjian medical as early as 2014. In December 2017, Xianjian launched a fully automated domestic pacing system “Xintong” series implantable cardiac pacemaker, including supporting pacing electrodes and program controllers.
In addition to the heart rhythm and heart failure business, in the field of structural heart disease, Medtronic also welcomed the approval and listing of the heavy “transcatheter aortic valve system” (TAVR) product evolut pro in China at the beginning of this year. TAVR products are also the field of fierce competition among Chinese medical device enterprises in recent years.
