Medtronic invests hundreds of millions of yuan in Lingang import leader to accelerate localization

Recently, it was reported that Medtronic will invest hundreds of millions of RMB in Shanghai Lingang to establish a product line and increase the production scale of its core cardiovascular devices in China
.
According to information disclosed by Lingang, the initial investment of the Medtronic Lingang project is about 300 million yuan, which will be used for the research and development and industrialization of cardiovascular disease-related products
.
The plant of the project is expected to be delivered in June this year, and will be put into production within 5 years after delivery.
It is expected to reach production in the third year after it is put into production.
The annual output value is expected to be about 300 million yuan after production
.
This is the first time Medtronic has invested its core business manufacturing in China, and it also marks that foreign high-end medical device products have entered a new era of local R&D and localization in China
.

 

Import enterprises are deeply cultivating "localization strategy"

 

2021 is an important time turning point for China's cardiovascular track
.
The centralized procurement of coronary stents has been implemented.
The average price of stents with an average price of 10,000 and 20,000 has been reduced by more than 90%, and the average winning price is about 700.
Medtronic is one of the only two foreign companies that won the bid.
1, accounting for less than 7%, and a large share was won by Minimally Invasive Medical and Lepu Medical
.

 

As the world's largest cardiovascular patient market, China's importance to giant medical device companieslike Medtronic is self-evident
.
In the past, perhaps some importing companies did not have the urgency of localization.
After centralized procurement, product prices plummeted and market share squeezed.
Importing companies had to consider how to reduce costs and increase localization investment.
It is increasingly urgent
.

 

　　As one of the first imported medical device companies to enter China, Medtronic has previously proposed a strategy of "increasing localization"
.
Recently, Li Qiang, Secretary of the Shanghai Municipal Party Committee, held a video connection with Medtronic Chairman and CEO Jeff Massa, and Medtronic Senior Vice President and President of Greater China Gu Yushao
.
The chairman of Medtronic also said that the Chinese market is of great strategic significance to Medtronic
.

 

　　In fiscal 2021, Medtronic received more than 230 regulatory approvals in markets including China, Japan, and more
.
This is also the implementation of its quantifiable localization strategy
.
At the same time, in December 2021, Medtronic and Lifetech reached an agreement to further expand the "Xintong" domestic cardiac pacemaker project cooperation.
The two parties will start the project cooperation of domestic nuclear magnetic compatibility pacing system to promote the rapid commercialization of new cooperative products in the Chinese market.
landing
.
In the field of structural heart disease, Medtronic also ushered in the approval of its blockbuster "transcatheter aortic valve system" (TAVR) product Evolut PRO in China in early 2022
.
The investment of hundreds of millions of yuan in Lingang will further accelerate the completion of its localization layout
.

 

　　Similarly, other import giants are also advancing their localization strategies for the Chinese market
.

 

　　Zhang Jun, President of Boston Scientific Greater China, said, "In China, Boston Scientific has formed more than 10 overall medical solutions for the treatment of severe and chronic diseases in various fields such as cardiac intervention, vascular health, digestive endoscopy, oncology, and urology.
Boston Scientific continues to develop and promote some cutting-edge technologies around the world, and its investment in the Chinese market is also increasing,
including the introduction of a number of new technologies and products in Boao, Hainan that have not yet been registered in China
.
"

 

　　Song Weiqun, Chairman of Johnson & Johnson China, said, "Johnson & Johnson's three major business segments have established "end-to-end" R&D capabilities
in China.
China is also the only company in Johnson & Johnson that has "end-to-end" capabilities in all three business segments except the United States.
In the market for R&D capabilities, there are more than 700 scientists and engineers in China devoted to local and global R&D work
.
”

 

　　Under the general trend of "domestic substitution", importing companies continue to build factories, establish R&D centers, and establish innovation centers in China, and continue to expand their strategic positions in the Chinese market
.

 

　　Domestic enterprises "set sail" overseas

 

　　Domestic machinery companies have begun to try to break through the ceiling of local profitability and seek development in overseas markets
.
Rely on continuous innovation to obtain larger-scale excess returns and realize the internationalization strategy and internationalization of the enterprise
.

 

　　MicroPort Medical implements a globalization strategy.
In 2020, the company's sales in non-China regions accounted for 55.
4% of its total revenue
.
In 2021, MicroPort Medical will acquire the equity of Kerui Pharmaceutical (the first supplier of rapamycin APIs used in the entire product line of MicroPort® stents), cross-border drugs , intervene in upstream raw materials, ensure the integrity and stability of the supply chain, and go overseas Resurrection coronary stent
.
In the first 10 months of 2021, the global cumulative order volume and shipment volume of MicroPort's full range of coronary stent systems both exceeded 1 million pieces, entering more than 2,200 hospitals in nearly 40 countries around the world, and is expected to win the top two in the global market share
.

 

　　Lepu Medical integrates the original foreign trade business and departments of all subsidiaries, establishes an international business department, and implements a 5-year 10-fold foreign trade development plan; accelerates the clinical research of innovative products (degradable stent, TAVR3.
0, renal artery ablation, etc.
) in the world field and product registration; explore the possibility of setting up R&D centers and production bases overseas, and have planned plans for overseas R&D centers, which will be implemented in 2021 due to the impact of overseas epidemics
.
The 2020 annual report shows that Lepu Medical's foreign operating income reached 1.
542 billion yuan, a year-on-year increase of 178.
38%, accounting for 19.
18% of total revenue
.

 

　　Although Chinese manufacturers are still catching up in terms of product quality
and technology, domestic enterprises have also won a share of the overseas market by virtue of their superior product quality and price advantages .
Of course, for domestic enterprises, innovation and R&D are still the top priorities.
Only by developing disruptive products can they have the opportunity to break the pattern of inherent interests and win the global market
.

　　Recently, it was reported that Medtronic will invest hundreds of millions of RMB in Shanghai Lingang to establish a product line and increase the production scale of its core cardiovascular devices in China
.
According to information disclosed by Lingang, the initial investment of the Medtronic Lingang project is about 300 million yuan, which will be used for the research and development and industrialization of cardiovascular disease-related products
.
The plant of the project is expected to be delivered in June this year, and will be put into production within 5 years after delivery.
It is expected to reach production in the third year after it is put into production.
The annual output value is expected to be about 300 million yuan after production
.
This is the first time Medtronic has invested its core business manufacturing in China, and it also marks that foreign high-end medical device products have entered a new era of local R&D and localization in China
.

 

　　Import enterprises are deeply cultivating "localization strategy"

 

　　2021 is an important time turning point for China's cardiovascular track
.
The centralized procurement of coronary stents has been implemented.
The average price of stents with an average price of 10,000 and 20,000 has been reduced by more than 90%, and the average winning price is about 700.
Medtronic is one of the only two foreign companies that won the bid.
1, accounting for less than 7%, and a large share was won by Minimally Invasive Medical and Lepu Medical
.

 

As the world's largest cardiovascular patient market, China's importance to giant medical device companies 　　like Medtronic is self-evident
.
In the past, perhaps some importing companies did not have the urgency of localization.
After centralized procurement, product prices plummeted and market share squeezed.
Importing companies had to consider how to reduce costs and increase localization investment.
It is increasingly urgent
.

 

　　As one of the first imported medical device companies to enter China, Medtronic has previously proposed a strategy of "increasing localization"
.
Recently, Li Qiang, Secretary of the Shanghai Municipal Party Committee, held a video connection with Medtronic Chairman and CEO Jeff Massa, and Medtronic Senior Vice President and President of Greater China Gu Yushao
.
The chairman of Medtronic also said that the Chinese market is of great strategic significance to Medtronic
.

 

　　In fiscal 2021, Medtronic received more than 230 regulatory approvals in markets including China, Japan, and more
.
This is also the implementation of its quantifiable localization strategy
.
At the same time, in December 2021, Medtronic and Lifetech reached an agreement to further expand the "Xintong" domestic cardiac pacemaker project cooperation.
The two parties will start the project cooperation of domestic nuclear magnetic compatibility pacing system to promote the rapid commercialization of new cooperative products in the Chinese market.
landing
.
In the field of structural heart disease, Medtronic also ushered in the approval of its blockbuster "transcatheter aortic valve system" (TAVR) product Evolut PRO in China in early 2022
.
The investment of hundreds of millions of yuan in Lingang will further accelerate the completion of its localization layout
.

 

　　Similarly, other import giants are also advancing their localization strategies for the Chinese market
.

 

　　Zhang Jun, President of Boston Scientific Greater China, said, "In China, Boston Scientific has formed more than 10 overall medical solutions for the treatment of severe and chronic diseases in various fields such as cardiac intervention, vascular health, digestive endoscopy, oncology, and urology.
Boston Scientific continues to develop and promote some cutting-edge technologies around the world, and its investment in the Chinese market is also increasing,
including the introduction of a number of new technologies and products in Boao, Hainan that have not yet been registered in China
.
"

 

　　Song Weiqun, Chairman of Johnson & Johnson China, said, "Johnson & Johnson's three major business segments have established "end-to-end" R&D capabilities
in China.
China is also the only company in Johnson & Johnson that has "end-to-end" capabilities in all three business segments except the United States.
In the market for R&D capabilities, there are more than 700 scientists and engineers in China devoted to local and global R&D work
.
”

 

　　Under the general trend of "domestic substitution", importing companies continue to build factories, establish R&D centers, and establish innovation centers in China, and continue to expand their strategic positions in the Chinese market
.

 

　　Domestic enterprises "set sail" overseas

 

　　Domestic machinery companies have begun to try to break through the ceiling of local profitability and seek development in overseas markets
.
Rely on continuous innovation to obtain larger-scale excess returns and realize the internationalization strategy and internationalization of the enterprise
.

 

　　MicroPort Medical implements a globalization strategy.
In 2020, the company's sales in non-China regions accounted for 55.
4% of its total revenue
.
In 2021, MicroPort Medical will acquire the equity of Kerui Pharmaceutical (the first supplier of rapamycin APIs used in the entire product line of MicroPort® stents), cross-border drugs , intervene in upstream raw materials, ensure the integrity and stability of the supply chain, and go overseas Resurrection coronary stent
.
In the first 10 months of 2021, the global cumulative order volume and shipment volume of MicroPort's full range of coronary stent systems both exceeded 1 million pieces, entering more than 2,200 hospitals in nearly 40 countries around the world, and is expected to win the top two in the global market share
.

 

　　Lepu Medical integrates the original foreign trade business and departments of all subsidiaries, establishes an international business department, and implements a 5-year 10-fold foreign trade development plan; accelerates the clinical research of innovative products (degradable stent, TAVR3.
0, renal artery ablation, etc.
) in the world field and product registration; explore the possibility of setting up R&D centers and production bases overseas, and have planned plans for overseas R&D centers, which will be implemented in 2021 due to the impact of overseas epidemics
.
The 2020 annual report shows that Lepu Medical's foreign operating income reached 1.
542 billion yuan, a year-on-year increase of 178.
38%, accounting for 19.
18% of total revenue
.

 

　　Although Chinese manufacturers are still catching up in terms of product quality
and technology, domestic enterprises have also won a share of the overseas market by virtue of their superior product quality and price advantages .
Of course, for domestic enterprises, innovation and R&D are still the top priorities.
Only by developing disruptive products can they have the opportunity to break the pattern of inherent interests and win the global market
.