Top 100 Global Medical Device Companies Ranking 2023

As representatives of Chinese companies, both Mindray and MicroPort have been selected for the top 100 list for the second time.MicroPort ranks 77th`, consistent with last year;`Mindray Ranked 27th, achieving a breakthrough by moving up five places from the last ranking. The international influence of Chinese brands in the medical device field is gradually increasing, and it is highly likely that more Chinese enterprises will appear on this list in the future.

According to the latest revenue data, the revenue for the first half of 2023 has already reached 60% of the total revenue for last year. Regarding the performance growth, Mindray attributes it to the acceleration of healthcare infrastructure expansion driving the growth of the medical device market, the speeding up of the localization process in China's medical device market, the rapid growth of the medical device markets in China and developing countries, as well as the company’s competitive advantages in R&D, production, marketing, and other areas.

In terms of overseas markets, Mindray's breakthroughs in high-end customer segments have also driven performance growth. This includes plans such as the proposed acquisition of 75% of DiaSys Diagnostic Systems GmbH, a globally renowned IVD brand, which also contributes to itsLayout Overseas Supply Chain Platform, AchieveLay a solid foundation for comprehensive internationalization.

On August 30, MicroPort Scientific Corporation released its interim results for the six months ended June 30, 2023.The group achieved revenue of 483 million USD, a year-on-year increase of 25%; gross profit of 288 million USD, a year-on-year increase of 16%; net loss attributable to shareholders of the company was 162 million USD, a year-on-year decrease of 18%.

TargetingA significant increase of 25% in business revenue compared to the same period last year (excluding the impact of exchange rate changes),MicroPort pointed out that during the reporting period, routine medical activities fully recovered, rigid medical needs rebounded significantly, and the volume of surgeries in multiple departments increased rapidly. Moreover, it benefited from the continuous deepening of globalization, accelerated launch of new products, and rapid growth on the demand side.

Specifically: MicroPort NeuroTech (neurointervention business) revenue increased by 45% year-over-year, cardiovascular intervention business revenue increased by 42% year-over-year, HeartValve (cardiac valve business) revenue increased by 41% year-over-year, Shanghai Heart Medical (688016) (aortic and peripheral vascular intervention business) revenue increased by 36% year-over-year, MicroPort Robotics (300024) (surgical robotics business) revenue increased by 3,110% year-over-year, orthopedic medical device business revenue increased by 10% year-over-year (including a 51% increase in revenue from the China market), cardiac rhythm management business revenue increased by 5% year-over-year (including a 51% increase in revenue from the China market), and emerging business revenue recorded multiple-fold growth.

However, behind this positive and prosperous scene, the issue of layoffs in the medical device industry has gradually emerged. According to MassDevice,Since the middle of 2022, the entire industry has laid off approximately 18,000 employees (as of May 2023).

In the Top 100 Medical Device Companies list,The total number of employees decreased by nearly 7%, dropping to 1.18 million.Medical Design and Outsourcing pointed out that this reflects the beginning of layoffs in the medical device industry in response to higher operating costs and operational issues faced by healthcare service providers.

As part of the top 100 list, Medical Design and Outsourcing also ranked and analyzed CEO compensation, comparing it with that of employees.

In the report, Medical Design and Outsourcing focused on analyzing 51 companies.Among them, the average annual salary of CEOs and senior executives is $10.2 million, the median of employees' average salary is $76,068, and the average pay ratio of the companies submitting proxy statements is 220:1.

Despite the large gap, CEOs are also facing pressure to cut salaries. For example, Medtronic's Chairman and Chief Executive Officer Geoff Martha earned $15.4 million in fiscal year 2023, a 14% decrease from 2022. The report indicates that this is mainly because he did not receive any benefits under Medtronic's incentive plan this year.

Corresponding to salary cuts and layoffs, the companies listed in the top 100 have significantly increased their R&D investment compared to previous years.The 62 companies that disclosed R&D expenditures increased their combined total by more than $4.4 billion (or 19.8%), reaching $26.4 billion.It can be seen that R&D capability is the foundation of medical device companies, especially in the current relatively mature market, where innovation is crucial for long-term development without needing further explanation.

It is worth noting that,In this top 100 list, there are three medical device companies that invest more than 20% of their revenue in R&D, among which MicroPort tops the list with "49.9%".

Relying on a vast market and continuous investment in research and development, over time, there will be an increasing number of...Medical Devices Made in China Are Expected to Rank Among the Top International Giants.