Boston Scientific Corporation's Board of Directors has approved a five-year, US$150 million investment in China to expand its commercial presence in one of the world's largest and fastest-growing medical device markets. This new investment will support the establishment of a local, wholly owned manufacturing facility focused on serving Chinese market needs and developing a world-class training center for Chinese healthcare providers. The training facility will offer instruction on the latest medical device procedures, utilizing therapy-oriented education and a virtual learning and device simulation environment.
In addition to activities associated with this investment, the company also expects to further invest in R&D and clinical studies while increasing its employee base in China from approximately 200 to more than 1200 during the period. These initiatives are expected to drive an expansion of Boston Scientific's current sales force to approximately 700 employees and the creation of a fully staffed manufacturing infrastructure, enabling Boston Scientific to better bring its innovative and life-saving technologies to Chinese physicians and their patients.
As a result of this increased investment, as well as current and anticipated initiatives, Boston Scientific now expects to increase its revenues in China to more than US$500 million exiting 2016. The company estimates that its target market in China currently exceeds US$1 billion and is growing approximately 20 percent annually.
Ray Elliott, President and Chief Executive Officer of Boston Scientific, has commented that the Chinese medical device market, while rapidly evolving and challenging, presents a significant growth opportunity for the company. By establishing a strong local manufacturing foundation and supporting infrastructure, Boston Scientific believes that it will be better positioned to become a leading medical device company in China, serving the population's burgeoning healthcare needs with innovative products and treatment options. To achieve that goal, however, the company requires expanding its commercial footprint in terms of size, scale and scope.
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