Boston Scientific ($BSX) is making more inroads in China. The device giant has begun a phased launch of its Promus Element everolimus-eluting platinum chromium coronary stent system in that country. The launch campaign will be expanded based upon receipt of provincial reimbursement approvals. The product represents the company's third-generation drug-eluting stent technology, the company says in a statement.
With the world's largest population, China represents one of the fastest-growing DES markets. Boston Scientific estimates that the number of coronary drug-eluting stents implanted there this year will be about 560,000, with annual market growth exceeding 20%, making it the second-largest DES market worldwide after the U.S.
The Promus Element launch comes roughly three months after the company's board of directors approved a 5-year, $150 million investment in China to establish a local, wholly owned manufacturing facility. At the time, they indicated it expected to increase its revenues in China to more than $500 million exiting 2016.
"The Chinese government has announced its intention to spend $125 billion on its healthcare system in the next 5 years, and the launch of our advanced coronary stenting technology in China reflects our intention to tap into its expanding, promising DES market," said Larry Neumann, senior VP and president, emerging markets at Boston Scientific, in a statement. "We are making significant investments in our sales, distribution and clinical infrastructure in China and this important launch reflects our goal to win global market share as part of our 'POWER' strategic plan."
Other big names in the device industry have been announcing new initiatives in China as well. Last month, Covidien ($COV) reported the creation of its flagship R&D center in Shanghai. The 25-member R&D staff the company currently employs in Shanghai will increase to more than 300 once the 100,000-square-foot facility is completed. And in June, Johnson & Johnson ($JNJ) said it had opened an innovation center in China to design and develop medical devices and diagnostic products for Asia's emerging markets.
- see the Boston Scientific release