I read an article in Businessweek that indicates the once U.S. centric medical device business is going global. The article highlighted that a number of startups are forming overseas. According to Jonathan Medved, founder and CEO of Jerusalem-based OurCrowd, “Traditionally, people have been very focused on the U.S. market, but now they are making sure a device is efficient enough to be sold in places like India and China.” If you only focus your device for the U.S. market, you risk competitive pressures.
Many large medical device companies in the U.S. are seeking partnerships with startups and established partners. This interest is driving up the value of medical device startups in emerging markets like China. For example, Medtronic recently acquired a 19% stake in LifeTech Scientific, a Chinese maker of stents and other vascular implants for $46.6 million. According to RnR Market Research, the Chinese medical market will grow from $20 billion in 2012 to $53.3 billion in 2020.
The article indicates there are limits to what these companies can do outside the U.S. One problem is the talent gap outside the U.S. This is forcing overseas companies to consider locating facilities in the U.S. because of the ability to attract experienced medical device professionals. One CEO from an India-based company cited that you can find 300 patent lawyers specializing in medical devices around the Silicon Valley area alone, in India there might be 3-4.
We have written other blogs on the potential of overseas markets and its obvious this trend will continue. What are your thoughts on this topic? Share your thoughts below.
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