Pharma giants going local to fuel ambitious growth
Shot by Dong Jun. Edited by Dong Jun.
Pharmaceutical and medical device companies are eyeing ambitious growth in China with new initiatives to co-create and foster local innovation.
Executives point to promising signs and an improving business environment that are favorable for high-quality growth in the sector.
Looking back at the decision taken more than a decade ago, Medtronic said it made a bold and progressive move to set up its factory in Shanghai as early as 2007.
The plant now covers 13 production lines with various kinds of surgical device and diagnosis facilities.
The Medtronic Innovation Center in Shanghai was established in 2005. Spread over 400 square meters, the center has offered training sessions for more than 70,000 medical practitioners.
Medtronic said the company made the bold and progressive decision to set up its factory in Shanghai as early as 2007.
China is the only country where Medtronic has two innovation sites, with the other one located in Chengdu, southwestern Sichuan Province.
Alex Gu, senior vice president of Medtronic and president of Medtronic China, said the latest policies and government initiatives make the company fully confident about the country's business environment in the coming years.
China would eventually become the world's largest market for medical devices and one of the most important sources of innovation, he noted.
It expects a new medical science and technology industry base in the Lingang Special Area of Shanghai's free trade zone, construction for which started in late 2022, to be operational in 2024 in order to meet growing local demand.
A Medtronic staff prepares for a training session at the Shanghai Innovation Center. China is the only country where Medtronic has two innovation sites, one located in Shanghai and the other in Chengdu, southwestern Sichuan Province.
Will Song, Global Senior Vice President and China Chairman of Johnson & Johnson, said that the company is looking to invest more in digital technology in the country and believes that localization is an inevitable trend.
"We've seen very evident supportive measures and stimulus policies to shift the economic structure and promote high-quality development, including a fast-track channel to introduce innovative treatment parallel with overseas markets," he noted.
Song added that central and local government officials have been very active in helping the economy to rebound and that Johnson & Johnson was committed to localization initiatives and speeding up cutting-edge technologies and products.
"We're also keen to foster internal and external partnership to drive forward industry upgrade," he said.
Johnson & Johnson's medical equipment factory in Suzhou, neighboring Jiangsu Province, was designated by the World Economic Forum as part of the Global Lighthouse Network.
