Medtronic PLC (NYSE:MDT) is increasing the number of affordable medical services that it offers in the Chinese market as well as potentially lucrative deals to help it cope.
The company is seeking to come up with deals that will allow the company to perform better and keep up with the local competition that has been one of the major problems that Medtronic has been facing. The company that specializes in heart valve equipment and other technologies has plans to make some new additions.
The company’s new venture will include products that be available for patients who cannot afford the highly priced products from the company. The project that the company dubbed value products will give the company an extra advantage as a growth tool. This is because the project will allow the company to harness the power of small spenders that are currently flooding the industry.
Value products will also give the patients an opportunity to get the much-needed help at reachable prices. The project might thus result into a massive positive outlook for the health sector.
Medtronic CEO, Omar Ishrak revealed in an interview that the company has plans to widen its market to hospitals beyond the confines of China’s major cities. Its list of affordable medical gadgets will include cardiac implants, spinal implants, pacemakers and surgical tools.
Medtronic is also targeting China’s local medical technology companies for potential buyouts. So far, the company has not revealed whether it has already held talks with any of the potential acquisition candidates.
Ishrak claimed that they were not so confident on the Chinese market because it is extremely challenging because of the heavy regulations. Additionally the health care system is riddled with corruption. These challenges make it increasingly hard for Medtronic PLC (NYSE:MDT) to penetrate into the industry.
Despite the hardships, Ishrak claimed that they are not giving up yet. He said that the benefits that the company will reap from pushing operations in China’s healthcare far outweigh the challenges and risks they will face.