Medtronic Unveils Its Largest Overseas R&D Center in Hyderabad, India

Mar 03, 2024 00:25 CST Updated 00:25

Medtronic

Chronic Disease Medical Device and Therapy Developer

Source: Siyu MedTech

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On March 1, 2024, Medtronic, a global leader in healthcare technology(New York Stock Exchange code:MDT）Medtronic Unveils Latest Expansion of Its State-of-the-Art Medtronic Engineering and Innovation Center (MEIC) in Hyderabad, India.

It is worth mentioning that,MEIC is Medtronic's largest R&D center outside the United States.Heart。

The expansion of the MEIC R&D Center is strategically aligned with Medtronic's goal of expanding its global R&D footprint and investing in the local innovation ecosystem, according to the press release.This expansion is also part of Medtronic's announcement to invest approximately $1 billion in India over the next five years.350 MillionUSD (Approximately RMB 2.486 billion）A part of.

MEIC was founded in 2011.Covering an area of 250,000 square feet, the center currently employs more than 900 engineers and will expand to 1,500 employees in the future.。

MEIC supports 15 global business units of Medtronic, focusing on the development and testing of cutting-edge software, medical mobile applications, and engineering research, among others. SurroundingSurgical Robots, Surgical Navigation and Imaging, Surgical Equipment, Implantable Devices, VentilatorsAnd other fields.

In 2020, Medtronic invested $160 million to expand the MEIC, making it the largest R&D center outside the United States for Medtronic.

▲MEIC (from the Medtronic official website)

In addition to its work involving robotics and surgical navigation, the MEIC will also provide expertise in mechanical design and analysis, hardware engineering, and quality and compliance for all Medtronic operating units. The expanded MEIC makes India a key center for Medtronic's global R&D efforts.

In the future, MEIC will focus on collaborative innovation, training and education, and immersive experiences in extended spaces, aiming to shape the future of medical technology. The new space will house the Digital Therapeutics & Innovation Lab, Connected Care Lab, Platforms & Technology Lab, Systems Engineering Lab, Software Lab, as well as new workstations and employee wellness facilities.

Medtronic Chairman and CEO Geoff Martha said, "Innovation is at the heart of every life-changing technology developed by Medtronic. Our R&D team in India plays a crucial role in Medtronic's global product development, and the expansion of MEIC marks a significant milestone in strengthening our global R&D capabilities. We appreciate the Telangana government for fostering a thriving local innovation ecosystem. The future of medical technology depends on robust R&D."

# Why India?

India's population ranks second in the world, approaching 1.4 billion, and continues to grow at an annual rate of 1.6%. At the same time, the country's elderly population has exceeded 100 million. These changes in population structure have led to a shift in healthcare needs, thereby driving the growth of healthcare expenditure.

As an important exporter of global artificial intelligence and semiconductor technology talents, India possesses a large pool of highly educated and skilled professionals. These talents provide the intellectual support needed for medical giants' research and development.

In addition, compared with developed countries, India's R&D costs are relatively low. Medical giants can set up R&D centers in India, utilize local R&D resources, reduce R&D costs, and improve R&D efficiency.

Besides Medtronic, many medical giants are eyeing India as a cost-effective and promising market.

As early as 2014, Boston Scientific (NYSE: BSX) opened its first R&D center in India, which contributed hundreds of innovative patents to the company; then in 2022, Boston Scientific announced the opening of its second R&D center in Pune, a city in western India. The new center spans 45,000 square feet and is equipped with a range of advanced medical devices and simulators.

It is reported that the R&D center of Boston Scientific in India mainly focuses onInterventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, Endoscopy, Neuromodulation, and Urology & Pelvic HealthThe R&D team in this location will provide comprehensive 360-degree support in the fields of mechanical design and analysis, software, and electrical and embedded systems development.

In March 2023, Siemens Healthineers held a groundbreaking ceremony for its new campus in Bangalore, India, which integrates R&D, manufacturing, and an innovation center. Siemens Healthineers has invested INR 13 billion (approximately RMB 11.3 billion) in the campus, which features 70,000 square meters of office space and 5,000 square meters of manufacturing space.

In April, under the Indian government's PLI (Production Linked Incentive) scheme, Siemens Healthineers further expanded its manufacturing base in India. The company introduced a new production line at its Bangalore facility for the production of Magnetic Resonance Imaging (MRI) machines.

It is reported that the establishment and growth of the Bangalore campus in India have made India a core location for designing and developing entry-level products within Siemens Healthineers' global operations.

Besides, in 2022, GE Healthcare launched its first 5G Innovation Lab in Bangalore, India. The lab is located at the John F. Welch Technology Centre (JFWTC). Notably,This is also GE Healthcare's largest R&D center outside the United States.。

With the massive bandwidth, high-speed data transmission, low latency, and highly reliable connectivity of 5G, the laboratory is equipped with state-of-the-art infrastructure, including a dedicated 5G network for testing and development. It will serve as a testing platform for developing future-oriented products and solutions, striving to ensure that GE Healthcare remains at the forefront in the field of patient care.

# Review: $58.2 Billion, Medtronic's Latest Quarterly Report

Medtronic is a global leading medical technology company, founded in 1949, with its headquarters located in Minneapolis, Minnesota, USA.The company is mainly committed to providing lifelong treatment, diagnosis, and monitoring solutions for patients with chronic diseases such as cardiovascular disease, neurology, diabetes, and spinal disorders.

On February 20, 2024, Medtronic announced its third-quarter financial report for the fiscal year 2024, which ended on January 26. The report showed that the companyQuarterly revenue was $8.1 billion (approximately 58.2 billion RMB), a year-over-year increase of 4.7%.；Quarterly net profit was US$1.34 billion, increasing by 8.8% year-on-year.。

At the same time as the financial report was announced, Medtronic also announced two major pieces of news: one isTerminate Ventilator Business, secondlyBob White, Executive Vice President and Head of the Medical Surgical Division, Departs.

(Review:Medtronic Reports $58.2 Billion in Financial Results! Business Termination and Executive Departures）

Medtronic's quarterly revenue is$8.1 billion (Approximately 58.2 billion RMB), an increase of 4.7% year-on-year；Quarterly net profit was $1.34 billion (approximately 9.6 billion RMB), an increase of 8.8% year-on-year., the results were higher than Wall Street's expectations.

By region, Medtronic's business is divided intoU.S. Market、Non-U.S. Developed MarketsAndEmerging MarketsThree major parts, includingFastest Growth in Emerging Markets(9.0%, $1.5 billion), followed by non-U.S. developed markets (7.8%, $2.47 billion) and the U.S. market (1.4%, $4.12 billion).

By department, Medtronic's business is divided intoCardiovascular、Neuroscience、Medical SurgeryAndDiabetesFour major segments, all four businesses achieved positive growth, among whichThe growth in the diabetes business was the most significant.(12.3%, $640 million); followed by Cardiovascular (6.1%, $2.93 billion); Neuroscience (4.3%, $2.36 billion) and Medical Surgical (3.9%, $2.15 billion).

The company's total assets as of the third quarter of fiscal year 2024 were $90.8 billion (compared to $90.087 billion in the previous quarter).

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Editor-in-Chief | Zhao Qing Reviewed by | Yi He