One of the world's fifth largest medical device companies has achieved good results in China, but it is pulling out of the Chinese market!

Withdrawal from China is basically confirmed

Will that China news spread everywhere in the industry that Kant's music, in July 21st, WeChat released the official music China Kant "on Kant's music Chinese business" article, not to "exit Chinese" message rumor, it will exit the Chinese basic facts prove.

The same day, blue lie and Candler related executives exchange, the other did not deny that China will exit. The executive's statement is consistent with the official WeChat caliber.

He said that since the acquisition of Chinese enterprises Candler, business growth has been very good, far exceeding the average level of the industry. At present, health care reform has entered a new stage, the company to grow, there is a strategic breakthrough, which should be considered by the company's policy makers. In the past, Kant's business in China was very practical, and this time the adjustment will also be aimed at strengthening competitiveness.

Earlier, Reuters revealed that Kant intends to sell its business in China, the transaction price is expected to be between 1 billion 200 million and ~15 billion dollars. Shanghai pharmaceuticals, Huarun pharmaceuticals and Sinopharm are three of the many companies that want to buy Kant's China, and will make their choice on Friday (July 22nd).

But after two days, no further information was received, and whether or not the decision was made last Friday remains unknown.

The business world rankings, Kant Locke fifth

According to Medtech Insight (MedTech observation) in 2016 to the world medical device companies in the sales ranking, cardinal medical equipment business with $12 billion 430 million in the world medical device company Fifth, behind Medtronic, Johnson, GE, SIEMENS.

According to July 20th just Chubang the "fortune" Global 500 ranking, Candler in 2016 to $121 billion 546 million in revenue ranked thirty-fifth, more than in 2016 increased by 15, in the field of health after the United Health Group and CVS.

In the field of medical equipment, Candler bought Johnson's Cordis for $1 billion 900 million in 2015, thus entering the field of equipment production. Cordis is strong in interventional vascular technology development and manufacturing, and it provides diagnostic and interventional products, including diagnostic and interventional catheters, balloons, self expandable stents, guidewire and vascular closure devices, etc..

In April 18th, Candler announced a $6 billion 100 million acquisition of Medtronic's medical equipment business, and signed an acquisition agreement, payment of cash.

Candler, China Medical Devices

Enter the Chinese cardinal in 1993 2003 formally approved the pharmaceutical distribution license, acquire the license for the first foreign; since 2005, expanding into medical devices and OTC business; in 2010, to $470 million acquisition of Shanghai pharma.

In 2012 China established cardinal cardinal medical equipment consulting (Shanghai) Co., Ltd covers a wide range of products, the main concern of medical consumables, such as clothing, non-woven surgical gowns, syringes, surgical cotton etc..

It can be said that the cardinal in 2007 China, accelerated in China business expansion through mergers and acquisitions or self run companies, successively in Hubei, Chongqing, Chengdu, Wuxi, Ningbo, Shenzhen, Dalian, Guangzhou, Tianjin, Wenzhou, Guizhou etc. in distribution.

At least before September 2016, according to the match Bo blue instruments, music in the medical device business China Kant reflected or aspiring and its turnover, estimated in the billions of yuan, the distribution in the field of Chinese medical equipment, should have entered the top four; it also rely on the parent company based in the United States and the global market distribution ability willing to help China medical equipment manufacturing enterprises to go abroad, into the European market.

Why quit China?

A person who has been engaged in the management of the staff in Kant's music to match the blue Bai said, in 2014, during 2015, cardinal Chinese or complacent, to do a big business, but by 2016, all of a sudden a lot of calm feeling.

His analysis, Candler could have grasp of policy is not very good, that Chinese will press the mode of medical policy development in the United States, but in fact China policy has its own unique side, and the change of policy may have unexpected cardinal.

Kant music before Chinese acquisition for medical wholesale enterprises, a high dependence on the hospital, in 2016 two votes after the opening, only wholesale has no hope, to the future, so consider stripping China business.

In the past few years, the acquisition of drug retail business, he said that Kant's acquisition after the transformation of the business, affecting the retail business profit margins, margins are not as great as the outside world think.

And with the cardinal Chinese exit, the business that will most likely be on the drugs, Chinese medicine or medicine in a Huarun, the medical device business nature will be transferred.