Taiwan to Make NT$54.2 B. of Medical-devices in 2008: IEK-ITIS

Taipei, Feb. 27, 2008 (CENS)--Production value of Taiwan's medical device industry enjoyed a high growth to reach NT$51.5 billion (US$1.61 billion at US$1: NT$32) in 2007 and is expected to further grow to top NT$54.2 billion (US$1.69 billion) this year, according to the IEK-ITIS.

The IEK-ITIS is the government-sponsored Industry & Technology Intelligence Services research program executed by local Industrial Economics & Knowledge Center (IEK) of Industrial Technology Research Institute.

The program pointed out that the 2007 global medical-device production value was US$194.84 billion, and the figure is expected to grow to reach US$247.3 billion in 2011 with a compound annual growth rate (CAGR) of 6.1%.

Taiwan's such value has been constantly rising in recent years, IEK-ITIS said, from NT$43.31 billion (US$1.35 billion) in 2005, NT$48.6 billion (US$1.52 billion) in 2007.

The program attributed the value growth in 2007 to the increased exports of blood sugar (glucose) meters and contact lens, including an over-40% increase of the former. In addition, a increasing ratio of locally made medical devices, such as medical furniture, medical appliances, laboratory instruments etc., are replacing imported counterparts.

Most major medical-device makers enjoyed eye-catching revenue and profit growths last year due mainly to increasing orders from big international customers, including Rossmax International Ltd., St.Shine Optical Co., Ltd., Apex Biotechnology Corp. (ApexBio) etc.

IEK-ITIS suggest local medical-device makers to pay more attentions to the orthopedics market, the global supply chain in such industry has been gradually moving to Asia. United Orthopedics Corp. (UOC), a local manufacturer of orthopedic implants, instruments and precision medical devices, for example, signed a five-year agreement with Smith & Nephew Inc. of the United States to contract supply artificial joints, while the Taiwanese company has also tapped into the American market with own-brand in early this year.

In addition, IEK-ITIS forecasted, the increasing diabetes patients in the world would create strong demand for glucose meters and generate lucrative business opportunities for Taiwan companies.

Taiwan Medical Device Import/Export Values Unit:NT$100 milion
	2002	2003	2004	2005	2006	2007(e)	2008 (e)
Production Value	304.0	370.0	389.0	433.1	486	515	542
Imports	298.5	319.7	349.0	363.2	380	400	430
Exports	200.8	249.7	225.5	249.9	268	285	309
Added-value Ratio	37.73%	33.90%	33.61%	29.33%	29.8%	32.12 %	35.6 %
Source: IEK-ITIS.