The deal calls for Fridley, Minn.-based Medtronic to invest in a plant in Chengdu, about 1,100 miles southwest of Beijing, to make a next-generation, sensor-augmented pump using its SmartGuard technology. The agreement also calls for the creation of Chinese-language software to give the local population access to the devices made there, the company said.
It’s the 2nd Medtronic plant announced for Chengdu in the last 18 months, following the opening of a hemodialysis-device facility there in August 2014.
“Medtronic and Chengdu share a commitment to transform diabetes care through advanced therapies that can provide greater freedom and better health to over one hundred million people living with diabetes in China,” intensive insulin management president Alejandro Galindo said in prepared remarks. “By manufacturing both advanced insulin pumps and hemodialysis products in Chengdu, we will benefit from the expertise of this global medical technology hub, while expanding access of our innovative therapies to China’s growing population.”
“The latest agreement marks another milestone in collaboration between Chengdu and Medtronic and confirms the potential of a public private partnership to improve health and quality of life for underserved diabetes population in China and beyond,” added Chengdu High Tech Zone deputy director Yuan Zongyong.
Last November, Medtronic and venture capital firm Sequoia Capital launched a $60 million fund for medical technology investments in China, aiming to back both Chinese startups with the legs for global markets and companies outside China with products that could succeed there.