Massachusetts-based medical device company, Boston Scientific, plans on investing $150 million in China over the next five years in order to expand its presence in one of the fastest-growing medical device markets.
"The Chinese medical device market, while rapidly evolving and challenging, presents a significant growth opportunity for the company," said Boston Scientific’s President and CEO Ray Elliott in a statement. "By establishing a strong local manufacturing foundation and supporting infrastructure, we believe we will be better positioned to become a leading medical device company in China, serving the population's burgeoning healthcare needs with innovative products and treatment options. Achieving that goal, however, requires expanding our commercial footprint in terms of size, scale and scope."
Boston Scientific’s investment in China will include establishing a local, wholly owned manufacturing center and a training center offering instruction on medical device procedures using therapy-oriented education and virtual learning. The company also expects its investment will increase its Chinese employee base from about 200 people to more than 1,200.
Investment initiatives will also include research and development and clinical studies. The company expects to increase its sales force to about 700 people.
The additional investment in China is expected to increase Boston Scientific’s revenues in that country to more than $500 million by the end of 2016. The company believes its target market in China is more than $1 billion and is growing at a rate of 20 percent every year.
"We believe there are significant opportunities to accelerate our growth in China, where our market share is a fraction of what it is in the U.S. and Europe," Boston Scientific’s emerging markets Senior Vice President and President, Larry Neumann, said in a statement. "Adding to the market potential is the growing affluence of the local population and the Chinese government's commitment to spend $125 billion on its healthcare system in the next five years. We think the time is right to make additional investments to help fuel our growth, help us win global share, gain access to diverse talent and bring our less-invasive therapies to more patients in China."