Medtronic, Johnson & Johnson, JM's foundry, big move! Industry change accelerates again

Pharmaceutical Network July 12th, July 10th, A-share listed company Kunshan Kesen Technology Co., Ltd. (referred to as 'Corson Technology') announced that it will set up a wholly-owned subsidiary in Kunshan City, Jiangsu Province with its own funds of 60 million yuan. The company 'Jiangsu Kesen Medical Devices Co., Ltd.' will conduct independent accounting for the medical device business, strengthen the team building, market development capabilities and management level of the business, making it more professional.

Prior to this, the Shanghai Food and Drug Administration announced that it had decided to expand the pilot program for the reform of the medical device registrant system to the city.

On July 10, Shanghai announced the 'Enlargement of 100 Articles', including the promotion of the reform of the medical device registrant system to the city, and gradually replicated and implemented to the Yangtze River Delta region.

The two messages seem irrelevant, not actually, the latter or the cause, the former or the fruit.

Cossen Technology, located in Kunshan City, Jiangsu Province, is a professional foundry company in the Yangtze River Delta region, mainly for consumer electronics and medical instruments International well-known customers in the industry provide precision metal manufacturing services.

Corson Technology has many customers. According to its 2017 annual report, there are Apple, Sony and other companies in the field of consumer electronics, Solar City, IronRidge, etc. in the field of energy. In the field of medical devices, Corson Technology mainly provides minimally invasive surgery for customers. The structural parts of implantable devices such as knives and embedded nails, customers have Medtronic, Johnson & Johnson, Jiemai and so on.

Corson Technology and Ke Hui have deep roots and cooperation. After Medtronic acquired Kehui, it became a supplier to other companies of Medtronic.

However, with other third party OEMs enterprise Similarly, Corsen's previous medical device OEM business is not large, ranging from 48 million in 2015-2017 to 75 million, or 77 million. The medical device business accounted for a small proportion of the company's total business. In the past three years, it was about 4.4%, 5.8%, 3.6%, but not more than 6%.

It is worth mentioning that, in several main business segments of Corson Technology, the gross profit margin of medical surgical equipment structural parts business is the highest, more than 55%, much higher than other subdivided businesses.

Corson Technology does medical equipment OEM, although the gross profit margin is higher, but the scale is not very large, but announced that it will take 60 million to set up a wholly-owned subsidiary to reorganize and upgrade the existing medical device foundry business. The opportunity to seize the pilot of the medical device registrant system is expanded, and the intention of the specialized cake commissioned by the food is obvious.

After joining hands with Medtronic as the second successful example of the Shanghai medical device registrant system pilot program, Jabil Technology, the world's third largest electronics OEM company, is reported to have received olive branches from seven or eight research and development institutions at home and abroad. Production line, increase production capacity, to taste more sweetness.

In addition to Jabil Technology, another third-party foundry company, Cossen Technology, has come to the fore. It is intended to take the lead in the reform of the medical device registrant system, and it is very important in the field of medical device OEM. It is different from Jabil’s foreign investment status. Corson Technology is still a real Chinese foundry company.

The medical device registrant system has spread so rapidly that the reform pilot has not yet reached the area outside the Shanghai Free Trade Zone. It has just been proposed to expand to the whole city of Shanghai and promote it to the Yangtze River Delta. The Kunshan enterprises in Jiangsu have been deployed locally. Strong, industry R&D, production, market structure has changed, not only really come, but also very soon!