Gross value production of medical devices surpasses NT$56 billion

This article was written by Jhu-Jing Lin of the Commercial Times and published by the Taiwan International Senior Lifestyle and Health Care 2007 on March 9, 2007.

The latest study of the Industrial Technology Research Institute, Taiwan's IEKITIS project, revealed that medical devices have reached a period of rapid growth. Gross production value of Taiwan's medical devices broke the landmark NT$50 billion for the first time in 2006, by accounting for NT$50.36 billion, with a 16-percent increse over the previous year. Moreover, growth projections see output continuing to grow to achieve a value of NT$56.15 billion in 2007.

The aforementioned study found that several popular products manufactured by domestic medical devices companies are enjoying stiff export demand and sales. In one case, the report cited Microlife Corp, the world's largest manufacturer of blood pressure meters, that started a partnership with U.S.-based Wal-Mart in June 2006. Since then, three models of Microlife's blood pressure meters have been sold across Wal-Mart's 1,800 stores. Currently, Microlife products are enjoying robust export sales as they continue to enter more than 2000 Wal-Mart stores and more than 6000 CVS stores in the U.S. Purchase orders are increasing at a surprising rate. The company's conservative estimation is that in 2006 alone, shipments of its blood pressure meters surged by 40 percent to 50 percent to account for the export of 1.5 million to 1.8 million units.

Microlife indicates that post-WWII baby boomers are entering their senior years and are therefore paying increased attention to their health needs. They follow closely the highs and lows of their blood pressure, which in turn contributes to increased demand for blood pressure meters. In fact, revenue for blood pressure meters in 2006 surpassed that for thermometers, which was previously Microlife's top seller. Another major cause for this growth has been the expanding marketing channels. It is estimated that there was approximately US$3 million worth of purchase orders placed by Wal-Mart in 2006 and even more orders are coming.

On the home front, the aforementioned study figures reflect this healthy growth in the import and export of domestic medical devices. Projections now have it that export value will reach NT$28.45 billion in 2006, representing a 13.85-percent growth on the previous year. Meanwhile, import value is expected to reach NT$37.9 billion, a 4.35-percent increase from 2005. Popular medical devices, including blood pressure meters, contact lenses, blood glucose meters, electric scooters and temperature measuring instruments, have in recent years achieved revenue growth of more than 50 percent.