Medtronics Global CEO China Will Become an Important Source of Innovation in Global Medical Technology

Jeff Masa, the global CEO of Medtronic, a multinational medical technology company currently visiting China, told reporters on the 1st that this year marks the 45th anniversary of China's reform and opening-up. China's expanding high-level opening-up and optimizing business environment have provided strong momentum and a broad platform for multinational companies to deepen their presence in China. Medtronic has always believed that China will become the world's largest medical market and an important source of medical technology innovation.

It is reported that Medtronic is one of the first multinational medical technology companies to enter China, witnessing and participating in the rapid development of China's healthcare industry, and is both a contributor and a beneficiary. In 1989, Medtronic established an office in Shanghai. Entering the 21st century, Medtronic accelerated its pace in developing the Chinese market and established a regional market headquarters in Shanghai in 2011, making the Chinese market a crucial part of its global strategic layout.

Jeff Masa told reporters that China is the only single market in Medtronic's global scope to have two innovation centers. The Medtronic Innovation Center (Shanghai), officially established in 2005, introduces world-leading clinical training facilities to provide clinical training for medical professionals in China and even Asia. In 2021, the Medtronic Chengdu Innovation Center was completed. He said that in the future, the two centers will play a greater "double-center effect" in improving the level of medical services, especially in supporting the development of grassroots medical care in the central and western regions and beyond.

China is also the only market in Medtronic's global scope where a regional venture capital fund is specifically established. In 2016, the Medtronic China Fund was officially established to focus on several diseases that have a significant impact on public health in China and their clinical solutions. It is reported that the establishment of the Medtronic China Fund is another initiative for the company to focus on local innovation in the long term. Jeff Masa introduced that Medtronic supports innovative development in the medical industry through investment funds. It is reported that in late April, the Medtronic China II Fund was launched, which is oriented towards local needs, supporting early-stage Chinese medical technology companies, and further integrating into the local medical innovation ecosystem. Jeff Masa said that the complexity of the challenges faced by the global healthcare system determines that no company can independently achieve this vision. It requires all companies in the industry, regardless of size, to work together. The Medtronic China II Fund will provide a platform for such a collaborative model.

It is reported that Medtronic has accelerated the introduction of nearly 700 innovative therapies and products to the Chinese market. A series of innovative medical device implantation surgeries have been performed in designated medical institutions in the Boao Super Hospital and the Guangdong-Hong Kong-Macao Greater Bay Area, allowing local patients to access advanced innovative medical technologies earlier and faster. On the one hand, Medtronic has shortened the "time gap" for introducing global innovative products to reach Chinese patients; on the other hand, the company has promoted the upgrading of local medical services and the widespread accessibility of quality medical resources through the linkage of the two innovation centers.

China's continued economic development has demonstrated strong resilience and vitality, providing a solid foundation for the development of the healthcare industry. Since the beginning of this year, international institutions have raised their expectations for China's economic growth. Jeff Masa believes that the "Healthy China 2030" strategy provides vast space for the popularization and application of innovative therapies in China. He explained with the example of cardiac pacing therapy that the incidence of arrhythmias is roughly the same in China and the United States, but China's population is much larger than that of the United States. Currently, the number of cardiac pacemakers implanted per million people in the United States is 16 times that of China. "Nowadays, people's awareness of health is increasing. With the advancement of the 'Healthy China 2030' strategy, more innovative therapies will have the opportunity to be widely used, benefiting more patients," said the global CEO.

In Jeff Masa's view, China's medical technology industry is developing rapidly. In the field of innovative technology, there is still much room for development for medical technology companies in China. The global CEO introduced that currently, 70% of Medtronic's orthopedic tools globally come from Changzhou and are sold to over 60 countries and regions worldwide. At the same time, the first engineering prototype of the MAZOR? XC spinal surgery robot produced in China has been launched. In the future, two-thirds of Medtronic's intelligent orthopedic surgical robots will be produced in Changzhou.

Jeff Masa told reporters that for many years, Medtronic has continuously deepened its presence in the Chinese market, continuously strengthening and improving its full value chain layout. Recently, Medtronic has made several investments in China that transcend cycles. For instance, in October 2021, Medtronic signed an investment agreement with Lingang New Area, becoming the first Fortune 500 multinational medical company to invest in Lingang. The medical technology industrial base project was officially launched in November 2022. On April 26th this year, the completion ceremony and unveiling ceremony of the Lingang Medical Technology Industrial Base invested and constructed by Medtronic were held in Life Blue Bay. This is one of Medtronic's important measures for its localization layout in China, aimed at more deeply integrating into the "Healthy China" strategy and supporting the high-quality development of the medical technology industry.

The medical industry is driven by innovation. During the interview, the reporter learned that Medtronic has already established an innovative ecosystem of internal and external collaboration in China, focusing on promoting the implementation of cutting-edge technologies in the medical field, addressing clinical pain points through innovation, and supporting the innovative development of China's medical technology industry. According to the introduction, Medtronic established its China R&D center in Shanghai in 2012. So far, the China R&D center of Medtronic has cumulatively developed 65 products, 33 of which have been successfully launched, and 23 have achieved global sales.

In addition, the reporter learned that Medtronic is attempting to adopt digital means to provide innovative solutions for hierarchical diagnosis and treatment and addressing the issue of "difficulty in accessing medical services." Medtronic has collaborated with Tongren Hospital affiliated with Shanghai Jiao Tong University School of Medicine to carry out a "community remote follow-up program for patients with implanted cardiac electronic devices." Through family doctors and community hospitals, patients can complete their daily follow-ups. So far, all 10 townships in Changning District have achieved full coverage of remote follow-ups.