- China's medical device market, forecasted to grow to $18B by 2018, represents a key growth driver for Medtronic (MDT -1%) says CEO Omar Ishrak. To that aim, the company is expanding the number of low-cost products its sells there while it explores potential acquisitions of China-based device makers.
- Mr. Ishrak says, "We're completely bullish on China. It's a numbers game. This will be the largest market and it's not a debate. It's a matter of when."
- The firm intends to increase its annual top-line growth in emerging markets to 15% from today's 12%. According to London-based consulting firm L.E.K., China will become the world's third-largest medical device market in 2018, displacing Germany and behind the U.S. and Japan.
- Chinese authorities have pressured medical companies to cut prices. Low- and mid-range-priced products now constitute ~70% of the market, up substantially from a decade ago when premium-priced devices dominated. Domestic makers now control 80% of the drug-eluting stent market, one reason Medtronic is assessing acquisition opportunities.
- The company currently owns Covidien, which has a large presence in China, and Chinese orthopedic implant maker China Kanghui Holdings.