Top 10 Most Competitive Multinational Healthcare Enterprises in China – 2023 Ranking and Business Overview

Jan 23, 2024 20:37 CST Updated 20:37

GE Healthcare

Digital Solution Provider

Roche Diagnostics

Diagnostic Solutions Provider

Boston Scientific

Medical Device Manufacturer

Siemens Healthineers

Medical Solutions Provider

BD

Medical Device R&D Manufacturer, Distributor

Medtronic

Chronic Disease Medical Device and Therapy Developer

Abbott

Diagnostic and pharmaceutical product manufacturers

Baxter

Disease Treatment Product Developer

Johnson & Johnson MedTech

Medical Device Manufacturer

Philips

Healthcare Service Provider

Against the backdrop of an era where centralized procurement knows "no禁区" and domestic substitution is gradually advancing, the golden age when multinational medical device companies could "躺赚" has long passed.

But the Chinese market remains an important component of future growth for global multinational healthcare enterprises — due to China's population size, market scale, and increasing healthcare payment capability, all of which will become key pivots in shaping the revenue structure of multinational healthcare companies."The next China is still China."

However, to win the Chinese market today, innovation has become essential — from product innovation to commercialization innovation, and across the entire industry chain from production to R&D.

Among the many large health multinational enterprises developing in the Chinese market, who is more competitive in China? Why is it TA? What can we learn from this?

Therefore, Med+ Research Institute jointly released with the Shanghai Health Development Research CenterThe First "2023 Healthcare Multinational Enterprises China Competitiveness Ranking"。

Over a period of six months, the Med+ Research Institute summarized the core localization capabilities of multinational healthcare enterprises through data quantification analysis, desk qualitative research, and expert interviews:Revenue, Pipeline, Brand, Talent, Business DevelopmentFive DimensionsThe 36 indicators provide a comprehensive evaluation of large health multinational enterprises; benchmarking the true value of the industry, discovering and encouraging large health enterprises genuinely committed to innovation in China and expanding healthcare accessibility, thereby creating value empowerment for the four major fields: government, hospitals, patients, and MNCs.

It should be emphasized that, according to the different degrees of influence on corporate competitiveness, the weights of the five major fields also vary in order to more fairly assess the competitiveness of each enterprise.Among them:

Revenue DimensionWeightThe highest proportion, the list specially subdivides it intoRevenue Scale、Revenue Share、Revenue Growth RateThree ImportantIndicators, to comprehensively evaluate the "performance" of multinational pharmaceutical and medical device companies in China.
Pipeline DimensionWeightRanked Second, as the underlying logic supporting corporate revenue, the list pays special attention toNumber of Class III Certificates Approved in China, Approval Speed in China, and Proportion of Domestic Approvals in Class III Certificates (hereinafter referred to as: Proportion of Domestic Approvals in Class III Certificates)Three main indicators.
The number of Class III certificates approved in China includes both imported and domestic registrations;
The speed of China's approval refers to the time difference between a product's launch in China and the US, which reflects how quickly a company can bring its global pipeline into China.
The proportion of Class III certificates approved domestically refers to products that are locally produced and go through the domestic registration channel for market entry. According to policy, all medical products currently manufactured in China can be referred to as "China-made," which clearly reflects the extent of a company’s product localization.
Business Development,Brand, TalentDimensional ScoreResidual Weight.

Reviewing the past and looking forward to the future, today we will first take a look at the 2023 ranking of global healthcare companies' competitiveness in the Chinese market.

1. The above data are all compiled from publicly available data by Med+ Research Institute; global revenue, China revenue scale, China revenue share (H1 2023), and China revenue growth rate (CAGR of sales in China from 2020-2022); exchange rates calculated based on the exchange rate on the day of the earnings report release.

2. Product Pipeline, Patents, and Journal Data Statistics (as of October 2023); Number of Approvals in China, Speed of Approvals in China, Proportion of Class III Certificates Approved Domestically (January 2020 - October 2023), ThreeLeizheng medical data only includes the statistics of newly approved products by the National Medical Products Administration.

Overall, the scores of the Top 10 multinational medical companies in China's competitiveness ranking are slightly lower compared to the Top 10 multinational pharmaceutical companies in China's competitiveness ranking. This indicates that multinational medical companies still have significant room for growth in China.

Top 10 Multinational Medical Companies in China Competitiveness Ranking:

GE HealthcareRanked 1st, with global revenue ranked 6th. Its outstanding performance in the Chinese market relies on "comprehensive localization."”Ranks 1st in the pipeline under promotion, while maintaining a relatively leading position in other dimensions as well.Ranked 5th in Talent Dimension。
Johnson & Johnson MedTechRanked 2nd, with global revenue ranked 1st. Years of accumulation in the Chinese market have made its revenue rank 1st.
Roche Diagnostics, Philips Healthcare, Boston ScientificRank higher in the China Competitiveness List than in the global revenue ranking, placing 3rd, 5th, and 8th respectively in the China Competitiveness List. Additionally, Roche DiagnosticsRanked 1st in the talent dimension.
Siemens Healthineers, BDThe ranking in the China competitiveness list is consistent with the global revenue ranking; Siemens Healthineers ranks 4th, and BD ranks 7th.
Medtronic, AbbottRanked lower in the China Competitiveness List than in the global revenue ranking, the former ranked 7th in the China Competitiveness List and 2nd in global revenue; the latter ranked 9th in the China Competitiveness List and 3rd in global revenue.
BaxterIt is a "dark horse" in China's competitiveness ranking. Although not in the global revenue top 10 list, it successfully ranked 10th in China's competitiveness list by vigorously developing and laying out localized operations in China.

In the two major categories of healthcare — large equipment and high-value consumables — the localization of large medical equipment enterprises in China has entered a new phase of the supply chain. High-value consumables companies mainly rely on accelerating the introduction of global pipelines into China, and the localization needs to be significantly improved, which will also be the focus of future competitiveness.

As a very important indicator of domestic production in China, the ranking of the proportion of Class III certificates approved domestically is as follows:

GE Healthcare 1,Philips 2,Johnson & Johnson MedTech 3,Siemens Healthineers 4,BD Medical 5,Medtronic 6,Roche Diagnostics 7th,WaveBoston Scientific 8th (tied),Abbott China 8th (tied)Baxter 8th (tied).

List of China Competitiveness Rankings for Global Health Enterprises

——Top 10 in Healthcare

GE Healthcare

Total Score 65.7

Revenue 27.5, Pipeline 18.3

*Only the data of the two largest weighted assessment dimensions are disclosed, the same applies below.

GE Healthcare with a total score65.7Topping the List of "Multinational Enterprises' Competitiveness in China" in the Medical Field.

Revenue Dimension RankingFourth:

Revenue in China is approximately 1.4 billion USD, ranking fourth.
Revenue from China accounts for approximately 15%, ranking second;
（2020-2022 AnnualizationRevenue growth in China was approximately 4%, ranking seventh.

Pipeline Dimension (2020-2023) RankingFirst:

Number of pipeline approvals in China ranks second;
Approval Speed of China's Pipeline,Ranked First。
The proportion of Class III certificates approved in China exceeds 77%, ranking first (the average for the top 10 MNC medical device companies is 27%);

GE Healthcare's current business includesMedical Imaging, Ultrasound, Life Care, Pharmaceutical DiagnosticsFour major segments, covering all aspects of prevention, screening, diagnosis, treatment, and monitoring.As GE Healthcare became independent from GE Group in January 2023, the speed of GE Healthcare's innovation and localization has been continuously accelerating.The Chinese market has become the only region for GE Healthcare to report directly to the headquarters as a country-level entity.。

GE Healthcare Leads the Way in Localization Among Multinational Medical Enterprises. As of the end of 2022, GE HealthcareOver 90%Localization of CT equipment in China,79%The localization of magnetic resonance equipment in China; in the high-end/ultra-high-end CT and 3.0T magnetic resonance fields, the localization rate has reached50%。

In terms of business expansion, the GE Healthcare ecosystem already encompasses nearly 1,000 partners.

In February 2023, GE Healthcare and China National Pharmaceutical Group Corporation's China Medical Device Co., Ltd. (Sinopharm Medical Devices) established in China.The first joint venture in medical imaging equipment controlled by Chinese (state-owned) capital。

Johnson & Johnson MedTech

Total Score 62.9

Revenue 30.2, Pipeline 10.4

Johnson & Johnson MedTechIn Total62.9Ranked in the medical fieldRanked second in the field of "China Competitiveness of Multinational Enterprises."

Revenue Dimension RankingFirst:

Ranked first in revenue scale in China;
Revenue share in China ranks fourth;
（2020-2022 Annualized)China's revenue growth rate ranks fourth.

Pipeline Dimension（2020-2023 years) rowSixth:

China ranks seventh in the number of pipeline approvals;
China's pipeline approval speed ranks tenth;
Proportion of Class III Certificates Approved in China, ranking third.

Johnson & Johnson MedTech has encountered many challenges in the context of centralized procurement in recent years, but its diversified business pipeline (Minimally Invasive and Open Surgery,Electrophysiology,Orthopedics,Ophthalmology`) and its long-term accumulation in the Chinese market have placed it in the second position on the list, with its revenue scale in China ranking at the top among MNC medical enterprises.`

Although 2023 maintained its应有的 position, the marketing-oriented model has reached a stage where breakthroughs are needed.

Roche Diagnostics

Total Score 60.2

Revenue 29.6, Pipeline 8.2

Roche DiagnosticsIn Total60.2Ranked third in the "Multinational Enterprises' Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingSecond:

Revenue in China is approximately USD 1.44 billion, ranking third;
Revenue from China accounts for approximately 18%.Ranked First(TOP10 MNC Medical Enterprises' China Revenue Average Ratio in the First Half of 2023 was 11%);
（2020-2022 AnnualizedRevenue growth in China was approximately -6%, ranking ninth. This was mainly due to the significant impact during the three years of the pandemic. In the first half of 2023, Roche Diagnostics' revenue growth in China has returned to positive growth.

Pipeline Dimension(2020-2023) ScheduleThe 7th:

China ranks sixth in the number of pipeline approvals;
China ranks seventh in pipeline approval speed;
The proportion of Class III certificates approved in China ranks seventh, which needs improvement.。

Roche Diagnostics is one of the multinational companies with the most comprehensive product portfolio in China's IVD细分 market.

In recent years, Roche Diagnostics has continuously increased its focus on localization in China, launching innovative products and comprehensive solutions:

In February 2022, Roche Diagnostics andChangchun SinoMedCollaboration to jointly launch the brand-new RS600 automation line customized for the Chinese market. In addition, Roche Diagnostics has also collaborated withFapon, Hotgen, Renmai, Orient GeneChinese-produced IVD companies have established cooperative relationships.
In November 2023, Roche Diagnostics officially released itsChinese-produced Automated Total SolutionThis means that Roche Diagnostics has successfully implemented its globally leading laboratory automation technology in China. In the future, it will also continue to build and refine a fully localized model covering the entire chain from R&D, production, sales to after-sales service.

Siemens Healthineers

Total Score 57.4

Revenue 27.7, Pipeline 13.2

Siemens HealthineersIn Total57.4Ranked fourth in the "Multinational Enterprise Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingThird:

Revenue in China is approximately 1.5 billion USD, ranking second;
Revenue from China accounts for approximately 13%, ranking third;
（2020-2022 AnnualizedRevenue growth in China is approximately 7%, ranking fifth.

Pipeline Dimension(2020-2023) ScheduleFourth:

China ranks fourth in the number of pipeline approvals;
China ranks fourth in pipeline approval speed;
Proportion of Class III Certificates Approved in China, ranked fourth.

Currently, Siemens Healthineers' businesses in China include four major segments: Imaging, In Vitro Diagnostics, Advanced Therapies, and Varian (Radiation Therapy).Revenue of approximately US$1.5 billion in the Chinese market became a crucial support for its fourth place in the overall ranking.

Siemens Healthineers' revenue performance was mainly driven by its medical imaging and Varian (radiotherapy) businesses, the construction of its ecosystem, and the continuous advancement of localization in China.In October 2022, Siemens Healthineers divided the original Asia-Pacific region into two parts: China and the Asia-Pacific region excluding China (including Japan), in order to fully unleash the development potential of each.

With the implementation of the "National Intelligence Innovation" strategy, Siemens Healthineers is accelerating the localization of its entire product line. Particularly in the high-end sector, approved products include the ultra-high-end dual-source CT SOMATOM Drive powered by AVATAR and the most advanced domestically produced PET/CT Biograph Vision BioRobot bionic robot, among others.

Philips

Total Score 52.3

Revenue 18.8, Pipeline 15.9

Philips with a total score52.3Ranked fifth in the "Multinational Enterprises' Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingFifth:

Revenue in China is approximately US$1.1 billion, ranking fifth;
Revenue from China accounts for approximately 12%, ranking fifth;
（2020-2022 Annualized)China's revenue growth rate is approximately -12%, ranking tenth. Due to the impact of the recall incident and supply chain issues, Philips' global revenue growth has performed poorly in recent years; relatively speaking, Philips China has been one of the better-performing market regions.

Pipeline Dimension(2020-2023) ScheduleThird:

Number of pipelines approved in China ranks third;
China's pipeline approval speed ranks second;
The proportion of Class III certificates approved in China ranks second.

Philips' current pipeline in China includes diagnostic imaging, ultrasound, image-guided therapy, patient monitoring, enterprise informatization, sleep and respiratory care, as well as personal health. The diagnostics and treatment business is its largest and fastest-growing segment, with high single-digit growth in China.

In recent years, Philips has been continuously promoting the localization of its China-made products and solutions in the Chinese market.

Field of监护:Localization Progress 75%，Launched "China's First Domestically Produced" Sleep Apnea Machine Dorma 500 in 2023;
CT Field:Localization Progress 100%，Top CT Products Manufactured in China；
DSA Field: Full Launch of Locally "Customized" Products to Drive Procedural AdvancementsAzurion Full Series Products Launched in China；
PET/CT Production Field: "Precision Diagnostic Tool" PoleStar Flight Plus PET/CT Begins Local Production in ChinaOne of the few multinational companies to localize the production of PET/CT in China；
Ultrasound Field: All Three Ultra-High-End Models Launched in 2023, Full Domestic Production Enters the "Final Kilometer".

Medtronic

Total Score 50.7

Revenue 17.0, Pipeline 16.5

Medtronic with a total score50.7Ranked sixth in the "Multinational Enterprises' Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingSixth:

Ranked fifth in revenue in China;
Revenue share in China ranks sixth.；
（2020-2022 AnnualizedChina's revenue growth ranks eighth.

Pipeline Dimension(2020-2023) ScheduleSecond:

China has approved 55 pipeline products, ranking first (the average number of Class III certified products launched by the top 10 MNC medical device companies in China is 26).
China's pipeline approval speed ranks eighth;
Proportion of Class III Certificates Approved in China, ranked sixth.

Currently, Medtronic's businesses in China include cardiovascular, surgical, orthopedics and neuroscience, and diabetes.Medtronic "Number of Pipeline Approvals in China”Ranked first, but most of its approved products are directly introduced international innovative products, not localized products. Therefore, in the "proportion of Class III certificates approved in China," Medtronic ranks only sixth.

In 2023, Medtronic began to continuously deepen its layout in the Chinese market:In 2023, its Shanghai Lingang Medical Technology Industry Base was inaugurated, and the first production line has been launched; the Medtronic Kanghui Changzhou Science and Technology Park was established; the second VC fund in China was initiated; and Meiji Meice Testing Services Co., Ltd. was founded to provide professional medical device testing services.It can be seen that Medtronic China is working hard to convert more of its pipelines into commercial output.

BD (Becton, Dickinson and Company)

Total Score 41.0

Revenue 13.5, Pipeline 10.8

BD Medical scored a total of41.0Ranked seventh in the "Multinational Enterprises China Competitiveness" in the medical field.

Revenue Dimension RankingNinth:

Ranked seventh in revenue scale in China;
Revenue share in China ranks seventh;
（2020-2022 AnnualizedRevenue growth in China needs to be improved.

Pipeline Dimension(2020-2023) ScheduleFifth:

Number of pipelines approved in China ranks eighth;
China's pipeline approval speed ranks sixth;
Proportion of Class III Certificates Approved in China, ranked fifth.

In the past few years, BD has continuously promoted the localization of its products in China. Beyond its three major production bases in Jiangsu, the company has established a "dual-center strategy" for research and development: an innovation design center and multifunctional laboratory in Shanghai, and a laboratory engineering center in Suzhou. Additionally, BD has set up the BD Greater China Innovation Center in Hangzhou to accelerate the introduction of innovative products made in China to the Chinese market.

According to its public disclosure, BD will launch approximately 20 innovative products annually in China from fiscal year 2021 to fiscal year 2025.

Moreover, the construction of the ecosystem is a key focus for BD's advancement.In July 2023, the BD Greater China Innovation Center (GCTIC) grandly opened in Gongshu District, Hangzhou City, Zhejiang Province, comprehensively establishing BD's capability center and innovation hub to empower the construction of a localized innovative medical ecosystem.

Boston Scientific

Total Score 35.5

Revenue 15.4, Pipeline 4.1

Boston Scientific with a total score35.5Ranked eighth in the "Multinational Enterprises' Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingSeventh:

Revenue in China is approximately US$4.4 billion, ranking ninth;
Revenue in China accounts for approximately 6%, ranking eighth;
（2020-2022 AnnualizedRevenue growth in China was approximately 27%, ranking first.

Pipeline Dimension(2020-2023) ScheduleThe 10th:

Number of pipelines approved in China ranks fifth;
China ranks fifth in pipeline approval speed;
The proportion of Class III certificates approved in China ranks eighth (tied).Need to improve。

In recent years, Boston Scientific has achieved impressive revenue growth in China, reaching double-digit percentages:Mainly driven by businesses including cardiac intervention, left atrial appendage closure (Watchman), rhythm management, and peripheral intervention.

Moreover, Boston Scientific has shown particularly outstanding performance in business expansion.In December 2022, Boston Scientific announced the acquisition of up to 65% (majority) of the shares of Sinocare, a Chinese cardiovascular intervention company. The cooperation between the two parties is not only an equity investment but also a global rights exchange; it brings more advantages to Boston Scientific's "localization" in China and empowers Sinocare’s innovative products to "go global."

Abbott

Total Score 35.0

Revenue 14.0, Pipeline 5.3

Abbott with a total score35.0Ranked ninth in the "Multinational Enterprises' Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingEighth:

Ranked eighth in revenue scale in China;
Revenue share in China ranks ninth.；
（2020-2022 Annualized)Revenue growth rate in China ranks second.

Pipeline Dimension(2020-2023) ScheduleThe 9th:

Number of pipelines approved in China ranks tenth;
China ranks third in the speed of pipeline approvals;
Proportion of Class III Certificates Approved in ChinaRanked 8th (tied), needs improvement。

Abbott Medical Devices' revenue growth rate in China ranks second, only behind Boston Scientific.The company owns two major medical device segments—Medical Equipment and Diagnostics.

Currently, Abbott has formed a comprehensive layout in China that integrates local R&D, advanced production, and innovative experiences, including four factories, three leading R&D centers, two training centers, and one integrated customer experience center.In the first half of 2023, Abbott upgraded the Innovation Center to more comprehensively showcase Abbott's cutting-edge technologies and integrated solutions.

Baxter

Total Score 27.9

Revenue 9.0, Pipeline 6.7

Baxter with a total score27.9Ranked Tenth in "Multinational Enterprises' Competitiveness in China's Healthcare Sector."

Revenue Dimension RankingThe 10th:

Ranked tenth in revenue scale in China;
Revenue share in China ranks tenth.;
（2020-2022 AnnualizedRevenue growth in China is among the top tier.

Pipeline Dimension(2020-2023) Schedule#8:

China ranks ninth in the number of pipeline approvals;
China's pipeline approval speed ranks ninth;
Proportion of Class III Certificates Approved in ChinaRanked 8th (tied), needs improvement。

Baxter's key therapeutic areas in China include renal, blood, nutrition, and pharmaceutical infusion, among others. In January 2023, Baxter Global announced plans to spin off and merge its Renal Care and Acute Therapies businesses into a standalone publicly listed company; in September 2023, Baxter officially announced the appointment of relevant executives.

Baxter's strong performance in the dimension of "Revenue Growth in China" has become the core driver for its entry into the TOP10 of the list.

List of China Competitiveness Rankings for Global Health Enterprises

——Revenue, Pipeline Single List

No.1 Revenue Growth in China, 2022:

Boston ScientificInOver 20%The growth rate ranks first in the medical field.The average growth of the TOP10 medical enterprises was only slightly above1%。

No.1 in China's Revenue Share H1 2023:

Roche DiagnosticsIn18%Top Medical Leader, TOP10 HealthcareThe average for enterprises is11%。

2020-2023 Number of Pipeline Approvals in China No.1:

MedtronicIn55 ModelsThe number of Class III certificates for products on the Chinese market ranks first in the medical field, with the average of the TOP10 medical enterprises being only26 Models。

2020-2023: No.1 in the proportion of Class III certificates approved in China:

GE HealthcareIn77%The proportion of Class III certificates approved in China ranks first in the medical field, with the average for the TOP10 medical enterprises being27%。

Against the backdrop of the times, multinational healthcare companies are under pressure.

☞"Eight Observations | Feeling the Trend Direction of the 2024 Medical Device Industry"In the final vote, nearly 20% of industry professionals believed that the localization of foreign enterprises in China would accelerate the "internal competition" in 2024. "Expanding the Chinese market" has become the key for foreign companies to resolve "internal competition" in the new year. In the foreseeable future, multinational pharmaceutical companies will enhance cooperation and integration with local enterprises, continuing to play an indispensable role in China's healthcare market.

Med+ Research Institute will also release this重磅list annually, using data in the new era of change.Promote the sustainable development of China's large health industry.

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