06.02.15
China’s endoscopic devices market is undergoing rapid growth, with an estimated value of $376 million in 2014, up 27.4 percent from $295 million in 2010, presenting a “tremendous opportunity” for foreign medical device companies, according to an analyst with United Kingdom-based research and consulting firm GlobalData.
Wenlu Hu, GlobalData’s analyst covering medical devices, said that while medtech manufacturer Boston Scientific Corp. has reported sluggish endoscopy device sales growth in the United States and Europe, markets in emerging regions, such as Asia and Latin America, have witnessed more significant expansion.
“Several speculated reasons for Boston Scientific’s slow sales in the U.S. and Europe include product saturation in an intensely competitive market, less brand loyalty, and a decline in the number of endoscopic procedures for certain therapeutic areas,” said Hu.
“On the other hand, Boston Scientific reports that more than 1 million bile duct stone removal procedures are performed in China as open surgeries each year, mainly attributable to the increasing middle-aged population. As a result, the untapped market potential for adopting minimally invasive endoscopic procedures is substantial.”
Despite this lucrative opportunity, the analyst said that the China Food and Drug Administration’s complex and lengthy regulatory framework, combined with “buy China” policies favoring domestic manufacturers, has created a significant barrier to entry for foreign companies.
To overcome this challenge, Boston Scientific entered into a strategic alliance with Suzhou Frankenman Medical Equipment of China in April, with a primary focus on minimally invasive endoscopic device development.
“Securing a partner with an understanding of China’s competitive landscape and endoscopic equipment market will prove to be of significant value, if not a pivotal step, for Boston Scientific in gaining access to this major market,” said Hu. “The partnership is expected to expand physician and patient access to minimally invasive endoscopic technologies in China. It will also serve as an exemplary breakthrough for other foreign companies, such as Olympus and Medtronic, seeking to compete with the country’s increasingly mature domestic manufacturers to incorporate a degree of in-country production into their businesses.”
Wenlu Hu, GlobalData’s analyst covering medical devices, said that while medtech manufacturer Boston Scientific Corp. has reported sluggish endoscopy device sales growth in the United States and Europe, markets in emerging regions, such as Asia and Latin America, have witnessed more significant expansion.
“Several speculated reasons for Boston Scientific’s slow sales in the U.S. and Europe include product saturation in an intensely competitive market, less brand loyalty, and a decline in the number of endoscopic procedures for certain therapeutic areas,” said Hu.
“On the other hand, Boston Scientific reports that more than 1 million bile duct stone removal procedures are performed in China as open surgeries each year, mainly attributable to the increasing middle-aged population. As a result, the untapped market potential for adopting minimally invasive endoscopic procedures is substantial.”
Despite this lucrative opportunity, the analyst said that the China Food and Drug Administration’s complex and lengthy regulatory framework, combined with “buy China” policies favoring domestic manufacturers, has created a significant barrier to entry for foreign companies.
To overcome this challenge, Boston Scientific entered into a strategic alliance with Suzhou Frankenman Medical Equipment of China in April, with a primary focus on minimally invasive endoscopic device development.
“Securing a partner with an understanding of China’s competitive landscape and endoscopic equipment market will prove to be of significant value, if not a pivotal step, for Boston Scientific in gaining access to this major market,” said Hu. “The partnership is expected to expand physician and patient access to minimally invasive endoscopic technologies in China. It will also serve as an exemplary breakthrough for other foreign companies, such as Olympus and Medtronic, seeking to compete with the country’s increasingly mature domestic manufacturers to incorporate a degree of in-country production into their businesses.”