Description

• Background

The client is a powerful player in the assembly line sector within the Automotive sector, based in China. As a diversification option the client is considering entering the healthcare sector. Due to its vast experience in the sector, MACOA has been invited to help the client identify opportunities within the Healthcare sector; both on R&D and manufacturing and/or service-based sectors.

• What did we do?

The healthcare sector is a growing sector at global level, where the majority of key players for medical device manufacturing have historically been companies based in EU or USA. Following the Made in China 2030 strategy launched by the Chinese government, companies that have the capacity and capability to develop and launch top-notch healthcare devices or services are considered as a priority for support from the Chinese government. Furthermore, considering the barriers of entry in the healthcare market pertaining to standards of the FDA, EMA and National Medical Products Administration; we needed to rationalize the efforts vs rewards the client would receive from any final product/service selected to be developed.

From the information above, we conducted a market assessment and internal company assessment to serve the purpose of linking the potential in the market with the competitiveness of the client. Having done this, we evaluated a selected list of medical device products based on the potential for growth, profitability and level of competitiveness. As well, we evaluated options and concluded first round of discussions with EU based companies that would be interested in licensing products for manufacturing to a third-party and/or open to potential acquisitions. Related to service-based sector in healthcare we mapped and introduced the potential to franchise and have the exclusivity of the franchise for APAC region for a global operator of hospitals and nursing homes.

• Results

The MACOA team identified eight new potential medical devices (one – considered as highly feasible and profitable) that could be developed and manufactured by the client, as well negotiated and presented the opportunity for a licensing deal and exclusivity contract to manufacture and sell German Made devices in the APAC region, as well as the opportunity to enter the hospital/nursing home service sector by having a master franchise for China from a global operator.