Medtronic Bolsters Surgical Robotics Presence in China Amid the Golden Decade of Medical Devices

In April 2019, the Medical Robot Innovation Competition, co-hosted by the Medtronic China Fund and BV Baidu Ventures, kicked off in Shanghai. The competition aimed to discover innovative solutions with breakthrough creativity that leverage technologies such as AI, sensors, robotics, and 3D imaging to better address challenges in medical scenarios.

Today, the competition is still in full swing, attracting widespread participation from companies across seven major sectors, including surgery, rehabilitation, medical assistance, and related intelligent hardware and software. It has also drawn significant attention from the industry.

In fact, medical robots have become the darlings of policy and capital in China. In November 2018, the National Medical Products Administration (NMPA) revised the "Special Examination Procedures for Innovative Medical Devices," approving the market launch of 21 innovative medical devices, including orthopedic surgical robots, to reduce clinical treatment costs. In 2018, several surgical robot companies successively secured substantial financing rounds. For the highly promising innovative field of surgical robots, industry leader Medtronic has spared no effort in its investments.

On December 27, 2018, Medtronic acquired medical device company Mazor Robotics and its robotic-assisted surgical platform for $1.7 billion, announcing that the first jointly produced product had received FDA approval, thereby bringing the acquisition to a close.

It is reported that Mazor is a pioneer in the field of surgical robotic systems and currently holds a leading position in the market. Medtronic aims to leverage Mazor to tightly integrate its surgical assistance systems with spinal implant workflows, thereby improving surgical outcomes and helping to build a sustainable competitive advantage for its core spinal therapy business.

The importance of robotics in the future healthcare market is self-evident. In response, Medtronic is actively expanding its robotics business in the Chinese market. According to Gu Yushao, Senior Vice President of Medtronic Worldwide and President of Greater China, the introduction of the Mazor system is currently underway with great momentum. It is projected that China will become the world’s largest healthcare market within the next decade, and maintaining industry leadership in this critical market is a key strategic objective for Medtronic.

Gu Yushao, Senior Vice President of Medtronic Worldwide and President of Greater China

Gu Yushao further stated that the connotation and extension of medical robots are very broad, with some key application scenarios highly relevant to Medtronic’s core business, such as surgical robots. “At Medtronic, we do not define surgical robots as a single medical device, but rather as a complex platform encompassing surgical procedure planning, precise robotic technology, and imaging and navigation systems. Through the robotic system, we can integrate surgical workflows and coordinate various components involved in the process—including navigation and positioning systems, imaging detection systems, and energy platforms—thereby optimizing procedures, enhancing surgical safety, and improving therapeutic outcomes. This will help Medtronic achieve synergies in surgical care and strengthen our capacity for integrated service delivery.”

In addition to the Mazor series of orthopedic robots, Medtronic plans to offer Chinese hospitals a comprehensive portfolio of surgical robotic systems to meet the needs of various market segments. “We will consider measures such as localizing production and seek collaborations with diverse local institutions to deliver extensive professional training and enhance the accessibility of surgical robotic systems,” said Gu Yushao.

From a market perspective, China’s vast healthcare services market also signifies a contradiction between enormous unmet demand and limited medical resources. Medical robots, such as surgical robots, rehabilitation robots, and assistive therapy robots, can assist physicians in delivering treatment, extend their capabilities, and prolong their professional careers. As an effective technological means to enhance the efficiency of healthcare services, the development of medical robots has not only received strong policy support but also attracted significant capital attention, making it highly likely to become an innovative field characterized by rapid development and widespread application.

Medtronic’s innovation strategy extends far beyond the field of medical robotics. Gu Yushao told VCBeat that, after 30 years of development, Medtronic has established a complete value chain in China, creating a closed-loop innovation ecosystem. He stated, “As an industry leader, we recognize that strengthening internal innovation alone is insufficient. Moving forward, we aim to integrate our ecosystem with China’s healthcare innovation landscape to foster open, collaborative innovation. This ecosystem includes physicians, government bodies, and academic institutions, while healthcare technology startups are also an indispensable component.”

In terms of government collaboration, Medtronic has partnered with the Chengdu municipal government to leverage a new Innovation Center for identifying local healthcare needs, fostering closer ties and cooperation among academia, research institutions, and enterprises, thereby serving local demands through localized innovation. In Suzhou and Shanghai, Medtronic has also established diversified partnerships with local governments, covering areas such as product R&D and manufacturing, clinical professional training, and innovation investment.

This year, Medtronic has made significant progress in strengthening the integration of industry, academia, and research. In March, the company officially unveiled its Joint Laboratory for Smart Healthcare with Shanghai Jiao Tong University, which will jointly explore the use of artificial intelligence technologies and algorithms to optimize and improve imaging quality in minimally invasive surgeries, thereby enhancing surgical efficiency and safety.

According to Gu Yushao, another significant initiative by Medtronic this year in the field of open innovation is the launch of the Medtronic Medical Innovation Accelerator. This innovation incubation platform integrates advantageous resources from both government and enterprise sectors, targeting early-stage innovative startups. It provides a range of incubation services to accelerate the translation and commercialization of meaningful innovative technologies in the medical device sector.

2018 was undoubtedly a year of significant change for China’s medical device industry. If described in a single word, it would be “innovation.” In addition to advancing the pilot program for the Medical Device Registrant System in the Shanghai, Guangdong, and Tianjin Free Trade Zones, the National Medical Products Administration vigorously promoted the approval process for innovative medical devices.

Notably, the design of the Marketing Authorization Holder (MAH) system for medical devices enables companies to focus on research and development while allowing manufacturers to fully utilize their production capacity. This not only stimulates market innovation but also promotes the optimal allocation of resources and enhances market vitality.

As one of the first companies to benefit from the new policy, Medtronic’s XPS Nexus Surgical Power System, used for head and neck, ear, nose and throat (ENT), oral, and maxillofacial surgeries, successfully became the second medical device pilot product under the Marketing Authorization Holder (MAH) system to complete registration in Shanghai.

Gu Yushao recalled that during the pilot program, Medtronic prioritized bringing leading medical solutions to Chinese patients as quickly as possible. Therefore, it gave precedence to products whose core manufacturing processes had already been carried out long-term and stably by qualified domestic manufacturers, with established supply to overseas markets.

In response to these new policies in China, Medtronic not only commends the various healthcare system reforms undertaken by government authorities to expand access to medical services, improve efficiency, and enhance clinical outcomes, but also expresses encouragement at the achievements of reforms such as the special review process for innovative medical devices and the Marketing Authorization Holder (MAH) system for medical devices. The company looks forward to the broader rollout of similar reforms, benefiting a wider range of therapeutic areas.

The next decade will be the golden era for the development of China’s medical device industry. As policies, capital, and innovation capabilities gradually mature, Medtronic, a global giant in medical technology, is fully prepared. We are also confident that Medtronic will contribute its substantial strength to this golden decade of the medical device sector.