Medtronic goes shopping in China
As it expands into the Chinese market, med-tech giant Medtronic PLC is seeking device companies for acquisitions.
That’s one of the nuggets in a Wall Street Journal story about Medtronic’s plans for China, which will soon become the world’s third-largest medical-device market, behind only the United States and Japan. “We’re completely bullish on China,” said CEO Omar Ishrak.
Medtronic, which is legally based in Dublin but keeps its management in Fridley, Minn., is increasing its lineup of lower-cost products to compete for Chinese patients who, though a lot richer than they were a decade ago, still can’t afford its higher-end products. Mid-range and “value” products are now the biggest sellers there.
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Ishrak said in 2013 that Medtronic had once misjudged how to expand in China; the markets in that country and India were so fragmented that the company had to adopt specific strategies for different regions or even different cities.
Medtronic has made inroads, though. In 2012 it bought implant maker China Kanghui Holdings Inc. for $816 million, and its Covidien business is a big provider or surgical supplies there.