Leading healthcare products maker Covidien plc (COV) has announced its plans to set up a research and development (R&D) center in China, its first in the world’s second largest economy. The center will focus on developing breakthrough products, helping physicians to improve healthcare offerings to people in China and other emerging markets in Asia.
The new flagship R&D center will be based in Shanghai and will be operational by July 2012. The 100,000-square-foot facility will house the Ireland-based company’s two emerging market R&D organizations, “Tailored Products” and “Breakthrough Platforms”. Tailored Products will identify and develop products customized for China and other emerging markets while Breakthrough Platforms will create new medical device technologies for Asian markets.
Covidien noted that the 25-member R&D staff which it currently employs in Shanghai will surge to more than 300 once the new center is completed, a roughly twelve-fold increase. The company has inked a memorandum of understanding with the Shanghai Caohejing Hi-Tech Park (“CHJ”), a high-tech industrial development zone, to mark the establishment of the facility.
Covidien is a leading global healthcare products company that develops and markets medical solutions for better patient outcomes. The company’s core medical devices business faces stiff competition from Johnson & Johnson (JNJ), Becton Dickinson (BDX) and C.R. Bard (BCR).
Covidien remains committed to rolling out new products and technologies, focusing on fast-growing markets, and boosting market share in core segments through investments in sales and marketing infrastructure.
Moreover, Covidien is expanding its footprint in emerging markets, notably in Asia and Latin America, for growth and broadening its product range through acquisitions and strategic collaborations. The company’s sales in China and Brazil are growing at a healthy double-digit pace. Covidien remains focused on achieving its long-term target of mid single-digit revenues and double-digit earnings growth.
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