Medtronic and Tesla Collaborate on Ventilator Production Amid Global Shortage

The Domestic Epidemic Situation Is Stabilizing, and Some Urgently Needed Medical Devices Can Be Exported for Sale (Details Attached)

Medtronic Confirms New Partnership

On March 21, according to a report compiled by Sina Auto from foreign media, Tesla CEO Elon Musk posted on social media that he had held engineering discussions with Medtronic regarding ventilator production, as the outbreak of the novel coronavirus was expected to lead to a shortage in ventilator supplies.

This message was also confirmed by Medtronic. Rob Clark, a spokesperson for Medtronic, stated in an email that the company had productive discussions with the Tesla team and would collaborate with Tesla and other companies to address the challenge of insufficient ventilator supply.

During the pandemic, demand for ventilators surged significantly. Earlier this week, Medtronic announced that it would more than double its manufacturing and supply capacity for ventilators to address the global pandemic. These devices will play a critical role in supporting patients’ respiratory function.

Medtronic CEO Omar Ishrak stated on social media on Friday, “The demand for ventilators is unprecedented.”

Possessing the Conditions for Ventilator Production

Tesla first expressed its intention to manufacture ventilators on March 19.

Tesla CEO Elon Musk pointed out that Tesla vehicles are all equipped with advanced HVAC systems, and SpaceX manufactures equipment with life support systems, so it is not difficult to manufacture ventilators, but they cannot be produced immediately. If there is a shortage of ventilators, the company will produce them.

Experts commented that the advantage of automakers lies in their engineering expertise and infrastructure, which can help ventilator manufacturers increase production capacity.

Tesla is not the only automaker seeking to cross over into other industries.

On the 20th, General Motors announced that it is collaborating with a ventilator manufacturer in the Seattle area to increase the production of medical devices, aiming to assist critically ill patients during the novel coronavirus outbreak.

General Motors will provide expertise in logistics, procurement, and manufacturing to help Ventec Life Systems, a medical device and equipment manufacturer, increase ventilator production capacity.

Volkswagen stated that it is working with other manufacturers globally to explore the use of 3D printing technology to produce ventilators in the fight against the coronavirus pandemic.

The two largest U.S. automakers, General Motors and Ford, stated that they are in discussions with White House officials on how to support the production of medical devices such as ventilators.

Currently, governments around the world are striving to collaborate with automakers such as General Motors, FCA, Ferrari, Jaguar Land Rover, and Nissan to help increase the production of ventilators and other medical devices.

Domestic Medical Device Companies Receive Overseas Orders

The domestic epidemic situation is stabilizing, while international demand for medical devices is increasing.

According to China News Service, on March 19 local time, New York Governor Andrew Cuomo stated at a press conference that New York is currently experiencing an acute shortage of ventilators. The state currently has only 5,000 to 6,000 ventilators, but requires a total of 30,000, and is procuring them globally.

According to Reuters, the U.S. Trade Representative announced on the 12th local time that additional tariffs on certain medical products imported from China, including masks and stethoscopes, have been removed.

Chinese medical device manufacturers have successively received overseas orders. The Italian government urgently purchased the first batch of nearly 10,000 units of anti-epidemic equipment from Mindray Medical. Biolight received an order for over 1,000 high-end patient monitors from Italy, and Edan Instruments received an order for more than 20 blood gas analysis products from Italy.

Essence Securities pointed out that China's medical device companies may be able to seize this opportunity to further enhance their international influence, which will benefit subsequent overseas product promotion and channel layout.

Mindray Medical recently issued an announcement stating that during the epidemic, there was an urgent demand for patient monitors, ventilators, infusion pumps, mobile DR systems, portable ultrasound devices, as well as in-vitro diagnostic equipment such as hematology analyzers and CRP analyzers.

In particular, there is strong demand for mobile DR systems and portable color Doppler ultrasound devices. However, as desktop color Doppler ultrasound systems are less directly related to pandemic response, hospitals may prioritize their short-term budgets for urgently needed equipment to combat the epidemic, thereby slowing down tendering and procurement processes for desktop units. Meanwhile, procurement demands from private hospitals will also be delayed due to the pandemic.

Medical devices can be exported abroad

Key medical equipment required for epidemic prevention and control is broadly categorized into four major classes, comprising approximately 38 types. These include resuscitation equipment, diagnostic and laboratory testing equipment, therapeutic equipment, and disinfection equipment.

Some of the main equipment includes:

Invasive ventilators, defibrillators, patient monitors, infusion pumps, etc., extracorporeal membrane oxygenation (ECMO) machines, ultrasound scanners, portable bedside ultrasound devices, X-ray CT scanners, blood gas analyzers, automated biochemical analyzers;

Ultrasound diagnostic systems, DR, mobile DR, portable bedside ultrasound scanners;

Infusion pumps, syringe pumps, real-time quantitative PCR instruments, hematology analyzers, electronic bronchoscopes, low-temperature hydrogen peroxide plasma sterilizers, enteral nutrition pumps, bedside hemofiltration machines (CRRT), real-time quantitative PCR instruments, mass spectrometers, nucleic acid extractors, thromboelastography systems, etc.;

The Ministry of Commerce stated that as the pandemic spreads globally, many countries face significant shortages of epidemic prevention supplies such as masks and protective suits, seeking aid from China or purchasing from Chinese suppliers. To demonstrate the responsibility of a major country and support global efforts to combat the pandemic, China has previously provided timely support and assistance in response to requests from relevant countries.

The State Council Information Office recently held a press conference in Wuhan, Hubei Province. Wang Jiangping, a member of the Central Steering Group and Vice Minister of the Ministry of Industry and Information Technology, stated, “As the epidemic situation in China gradually improves, China can provide support within its capacity to other countries in need of protective supplies. We encourage manufacturers of protective equipment, medical devices, and therapeutic drugs to align with international demand and contribute to the global fight against the pandemic.”

Original Title: Confirmed! Medtronic and Tesla Produce Medical Devices