NIPRO

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Nipro - Company Profile

Nipro Medical Corporation specializes in custom medical manufacturing solutions including medical-surgical, renal, and vascular access devices. Headquartered in Miami, Florida, it employs over 10,000 people.

HISTORY

Nipro Medical Corporation was established in 1996 in Miami, Florida. In the beginning, its business model was based mainly on OEM (Original Equipment Manufacturer) contracts, manufacturing quality products for top medical corporations. Today, they continue to provide custom product design and manufacturing expertise to other medical suppliers but have since expanded our portfolio to include a complete line of products under the Nipro brand. In 2014, the North American sales and marketing office was relocated to Bridgewater, New Jersey.

PARENT CORPORATION

Nipro Medical Corporation is a subsidiary of Nipro Corporation which was established in 1954, employs over 20,000 team members, and specializes in medical, pharmaceutical and glass products. Nipro was founded in 1947 as a light bulb recycling business. In 1954, Nihon Glass Shoji Co. Ltd. (currently Nipro Corporation) was established and began marketing glass tubes for ampules. Its products included not only medical glass but also small light bulbs and glass for thermos bottles. The company also entered the supermarket business (later Nissho Store).

REVENUE AND CAPITAL

Nipro Medical Corporation had a revenue of $2.1 billion USD for the nine months period ended December 31, 2017, with Nipro Corporation at $2.7 billion USD, respectively. A separate market capital of Nipro Medical Corporation was not found, but the market capital of the Nipro Corporation is $2.4 billion USD.

LIMITED INFORMATION

The company's website, annual reports, as well as other credible websites were very limited on marketing leadership details, events program information and partnerships. It seems that most of such data is not publicly available, but what is available has been provided. In general, marketing strategies and specificas are not publicly disclosed even by public companies. This is something that is not required by any regulations to disclose and is therefore reliant on media mentions and public interviews. As there are few of those available for Nipro, we have endeavored to provide all information we were able to unearth during our research.

SALES AND MARKETING LEADERSHIP

Mitsutaka Ueda serves as Deputy General Manager of Medical Technology, Division for Planning, Development & Marketing and Director of Nipro Corporation and is responsible for its Domestic Division. Prior to this position, Mr. Ueda served as Deputy Chief Director of Product Development and Sales in Domestic Business Unit in the company.

Mr. Yasushi Kutsukawa serves as Medical Sales General Manager of Domestic Business Department and Director at Nipro Corporation and is responsible for its Domestic Division. Prior to this position, Mr. Kutsukawa served as "Director of Central Area Sales and Deputy Chief Director of Sales in Domestic Business Unit in the company, and worked for a company that was merged with the company."

PARTNERSHIPS

Belgian Alzheimer specialist ADx NeuroSciences signed a R&D
agreement with Nipro in 2016, giving Nipro access to forefront the synergistic collaborative R&D work in Alzheimer’s disease, accelerating the development of next-generation Point of Care in vitro diagnostic (IVD) products and Alzheimer's disease diagnostics.
Nipro Corporation and Transonic Systems Inc. (New York, USA) announced the formation of a Joint Venture (JV) under which Nipro will receive exclusive marketing and sales rights for all non-OEM Transonic products in Japan.

EVENTS

Nipro Medical Corporation participated in the 2013 Spring Clinical Meeting hosted by the National Kidney Foundation. The NKF Spring Clinical meeting brings together nephrology professionals involved in the treatment of kidney disease, from nephrologists to dietitians.

Nipro Medical Corporation is a world-leading manufacturer of renal, medical-surgical and interventional radiology products. They are committed to delivering innovative, high quality and value-added solutions to improve patient care. Nipro Medical generated $ 2.1 billion last year and has a team of over 10,000 employees in the US.

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Nipro Competitors

The top 5 competitors of Nipro Medical Corporation based on market share are Johnson & Johnson, Siemens Healthineers, Medtronic, Becton Dickinson, and GE Healthcare. Their estimated market shares are 8.9%, 5.7%, 3.3%, 2.7%, and 1.5% respectively.

The requested details have been added to the attached spreadsheet. Below is a deep dive of my methodology and findings.

Methodology

To identify the top 5 competitors of Nipro Medical Corporation and their market shares, I started by defining the market of which Nipro is a part of. After careful investigation, I concluded that Nipro can be categorized in the medical devices market because
1 — 73% of Nipro's business is related to "medical-related" solutions, apart from their other segments, i.e. pharmaceutical and pharma packaging.
2 — Nipro has been categorized along with medical devices companies in industry analyses, e.g. this list of top 40 medical device companies.

After identifying the market, I found the top global medical device companies using this pre-compiled list. I was unable to find top companies in the North American market because many of the companies report regional data for the United States (e.g. Johnson & Johnson) but not for North America, therefore, I have used global data.

Market share calculations for each company, including Nipro Medical Corporation, are shown below.

Calculations

The global medical device market is projected to reach $342.9 billion by 2021 at a growth rate of 4.6% between 2016 and 2021. Using this market size and CAGR, the current market size for 2018 can be calculated as follows:
Current market size = $342.9 billion / (1.046^3) = approx. $300 billion.

The top 5 medical device companies, and Nipro's competitors, according to MPO are Medtronic, Johnson & Johnson, GE Healthcare, Siemens Healthineers, and Becton Dickinson. Their market shares can be calculated by using their revenues generated in the medical devices (or related) sector and the overall market size as follows:
Market share = (Revenue / Market Size) x 100
Please note that I have used 2017 revenues for all companies, as these are the latest available revenues for all of them.

MEDTRONIC
Revenues from Surgical Solutions sector = $9.9 billion
Market share = ($9.9 billion / $300 billion) x 100 = 3.3%

JOHNSON & JOHNSON
Revenues from Medical Devices sector = $26.6 billion
Market share = ($26.6 billion / $300 billion) x 100 = 8.9%

GE HEALTHCARE
Revenue% from Life Sciences sector = 24%
Total Revenue = $19.1 billion
Revenue from Life Sciences sector = $19.1 billion x 0.24 = $4.6 billion
Market share = ($4.6 billion / $300 billion) x 100 = 1.5%

SIEMENS HEALTHINEERS
Revenue in Euro = €13.8 billion
Revenue in USD = $17 billion (Converted from € using Google)
Market share = ($17 billion/$300 billion) x 100 = 5.7%

BECTON DICKINSON
Revenue from Medical sector = $8.1 billion
Market share = ($8.1 billion/$300 billion) x 100 = 2.7%

Using a similar methodology, Nipro's market share can be calculated using the 2017 revenue as follows:
Revenue from Medical sector in Japanese Yen = ¥359.7 billion
Revenue in USD = $3.4 billion (Converted from Yen using Google)
Market share = ($3.4 billion/$300 billion) x 100 = 1.1%

The market shares and other details have been added to the attached spreadsheet.
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Nipro Competitive Landscape, Part 1

Nipro is a medical products company headquartered in Osaka, Japan that has its business operations across the world. In the United States, the company operates under the name of Nipro Medical Corporation that was established in 1996 in Miami, Florida. Nipro directly competes with Johnson & Johnson (J&J) and Siemens Healthineers in the areas of medical devices and pharmaceutical products. All the companies offer products and services that are targeted at both businesses and consumers. Key advantages of Nipro is its unique Trinity business model whereas J&J leads through sustainable innovation. Siemens Healthineers thrives on its unique digital ecosystem that connects leading medical providers. All the information has been entered in the provided spreadsheet.


NIPRO
Products/Services:
1. Renal products: Cellentia-H CTA dialyzer, ELISIO dialyzer, NiproSet blood tubing set and Nipro safetouch tulip safety fistula needle
2. Intervention products: Cronus HP 0.035 OTW PTA balloon catheter and AQUALiner II second generation hydrophilic super elastic
3. Medical-Surgical products: Safetouch safety needle, Nipro hypodermic needle, Nipro hypodermic syringe and Nipro 10cc syringe
4. VSmart Veterinary products: VSmart hypodermic syringe

Nipros competitive advantage is its Trinity business model. Pillars of company's Trinity business model are medical devices, pharmaceuticals and glass products. Nipros unique strength of technology, medical devices, pharmaceuticals and glass products is manifested in its combination products like double bag kits and filled syringes, and provides the company with key competitive advantage.

Nipro Medical provides custom product design and manufacturing expertise to other medical suppliers. For medical devices, it targets surgical, intervention, vascular access, renal, and veterinary dealers.

JOHNSON & JOHNSON
Products/Services:
1. Consumer products: baby and beauty products (Johnsons baby, Aveeno, Clean & clear, Johnsons adult, Neutrogena, Le petit marseillais); health & healing products (Band-aid, Mortin, Tylenol, Benadryl, Zyratec and Listerine)
2. Medical devices: surgery (Ethicon), advanced sterilization products (ASP), acclarent, arrhythmias, DePuy synthes, codman neuro, breast aesthetics, LifeScan and ACUVUE
3. Pharmaceutical products: immunology, cardiovascular & metabolic disease, pulmonary hypertension, infectious diseases & vaccines and oncology

J&Js competitive advantage is its sustainable innovation, research and development, product innovation, excellent balance sheet and brand leadership. J&J is a 130 year old company, whose brand leadership and consistent profitability has allowed the company to outperform the market and competitors.

J&J offers its products across all age groups and market segments. Company has products for babies, children, teenagers and adults. Consumer products division of the company targets end users. Its medical devices and pharma divisions target medical providers. Mostly urban families and hospitals and clinics buy J&J products.

SIEMENS HEALTHINEERS
Offers medical imaging, point-of-care testing, laboratory diagnostics, healthcare IT, services, accessories and equipment, therapy systems, refurbished systems and clinical specialties.

The competitive advantage for Siemens Healthineers is its digital ecosystem. It provides an open and secured environment for healthcare stakeholders/partners that houses a range of digital offerings from Siemens Healthineers.

The company target market is healthcare providers worldwide.

CONCLUSION
The competitive landscape for Nipro is completely dominated by Johnson & Johnson. Johnson & Johnson is one of the oldest companies that covers both consumers and providers. Johnson & Johnson also has the maximum market share amongst all the competitors covered in the study. Nipro US operations are more specialized and deals in renal, medical-surgical and intervention radiology products. The digital ecosystem that Siemens Healthineers has developed provides them with a major competitive advantage over others.
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Nipro Competitive Landscape, Part 2

Medtronic, Becton/Dickinson, and GE Healthcare sell medical and healthcare-related products to target markets composed of doctors, healthcare workers, and administrators, each displaying a unique competitive advantage. The competitive advantages are explored in full-detail below. When researching this article, we could not find North America specific data. That's why we have focused on providing information on some of Nitro's global competitors. We have included all the required information in the provided spreadsheet.

MEDTRONIC

Medtronic is a private company which makes and sells a wide range of medical therapy products, including pacemakers, implantable defibrillators, and heart valve replacements. They also sell equipment for image-guided surgery and intra-operative imaging, drug delivery systems, as well as insulin pumps and glucose-monitoring systems. Medtronic's target market includes medical professionals, such as doctors and other hospital staff. The company's commitment to creating positive social impact through the Medtronic Foundation, as well as their dedication to quality and transparency give them a competitive advantage over other companies.

BECTON/DICKINSON

Becton, Dickinson — composed of both BD Medical and BD Life Sciences — manufactures and sells a variety of medical supplies, devices, laboratory equipment, and diagnostic products. BD Medical's products include equipment such as needles, antiseptic products, drug-delivery systems. BD Life Sciences' products include tools for specimen collection, blood culturing, and kits for cell analysis. Becton, Dickinson's target market includes medical professionals and administrators at healthcare institutions, life science research facilities, and laboratories, as well as members of both the pharmaceutical industry and the public. Becton, Dickinson's competitive advantage is rooted in their commitment to clinic excellence, as well as their strong communication with the public. Their easy-to-navigate website hosts an array of blog posts, slickly-produced videos, articles, and case studies, allowing anyone to learn more about the company and its products.

GE HEALTHCARE

Finally, GE Healthcare sells clinical solutions including anesthesia delivery and perinatal care products; medical imaging technologies; patient monitoring systems; and performance improvement solutions. They also offer DoseWatch, a "dose-management solution" targeted to radiation and iodine exposure. GE Healthcare's target market is composed of medical professionals and administrators working in hospitals, laboratories, and research centers. The company's competitive advantage comes from their wide range of products to meet all healthcare and research needs, as well as their strategic partnerships with companies like Guangzhou RiboBio Co., Ltd and Roche.

CONCLUSION

Medtronic, Becton/Dickinson, and GE Healthcare all sell medical products to similar target markets (healthcare professionals), which makes them direct competitors to Nitro. However, each company offers a unique competitive advantage within the market.
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Medical Products Industry Trends

Medical Devices range from simple devices, such as tongue depressors and urinary catheters, to more complex devices including programmable pacemakers, imaging systems, irradiation equipment, and surgical implants. Renal dialysis catheters and angioplasty balloon catheters fall into these categories. The global medical device market as a whole is over $390 billion and predicts steady growth of 2.8% over the next 5 years. The largest markets are the United States and China. Chronic disease epidemics, such as End Stage Renal Disease, create a heavy economic burden on the healthcare system.

In 2017, costs of $32 billion were incurred to treat 500,000 patients with the disease in the United States. Trends in renal and medical surgical devices, intervention catheters, and the overall industry include innovations in portability and wearable technology, cyber-security concerns, a continued increase in the growth of the catheter industry, continued popularity of mergers and acquisitions within the industry, and resulting policy changes by the Trump Administration.

INNOVATIONS IN HOME DIALYSIS, WEARABLE TECHNOLOGY, AI, AND IoT

Overall, artificial intelligence applications are gaining traction in the imaging industry, however the present focus is still on accurate clinical applications. Medtronic is one example of medical device companies entering the AI domain with the Sugar. IQ app, a personal assistant associating behaviors, therapy, food logging, and monitoring via glucose sensor and insulin pump data to assist patients with glucose level patterns. Diabetes is one of the major risk factors for End Stage Renal Disease and of interest to the renal device industry.

The aging population and life expectancy increase has created an increased need for innovation in compliance and adherence mechanisms, such as automated medication administration, and portable devices for in home use. These innovations can reduce the economic burden created by chronic diseases and subsequently increase quality of life.
These trends are evident in renal and intervention device markets. The aging population requiring daily kidney dialysis creates issues with mobility and daily dialysis center visits and there are several key players in the dialysis industry working on the development of portable dialysis machines. Fresenius Medical, out of Germany, is the first and only company introducing home dialysis options for dialysis patients. Other key players in the renal device market include Baxter and Gambro, which when combined with Fresenius contribute 65% of the global market in dialysis equipment.
Just as there are wearable medical devices, such as cardiac monitors and insulin pumps, the future looks promising for the development of a wearable kidney (WAK). The prototype, manufactured by Blood Purification Technology, was tested in 2017 by the University of Washington, exhibiting positive results. The 10lb device worn on a belt is expected to reach clinical trials in 2022. Technology is hoping to alleviate the $32 billion dollars per year spent on the US dialysis population of 500,000. Presently the United States holds the largest share of the dialysis equipment market at 34% and is followed by Asia at 28%. Innovation and digitization within the industry also come with associated concerns.

CYBER-SECURITY CONCERNS

Cyber-security Challenges are expected to grow with rapid developments in industry innovation. More and more wearable and portable applications will be reporting data via cloud and online platforms. Many wearable technologies will be connected to internal wireless networks and servers due to HIPPA guidelines and virtually anyone entering inpatient, outpatient, and physician offices has a mobile device in their possession.

Unfortunately, healthcare institutions fall behind other verticals as far as mature developments of their security systems. Advancements in electronic medical records and tele-medicine may also present more opportunities for data breaches. In the first part of 2017, 791 breaches were reported affecting 12 million medical records. Regardless, innovations in technology have created opportunities for a marked growth in both the catheter and dialysis segments.

GLOBAL CATHETERS MARKET IS EXPECTED TO INCREASE BY A 7.4% CAGR GLOBALLY

The catheter segment is divided into three sub segments, cardiovascular, urology, intravenous, and neurovascular catheters. Cardiovascular and urology catheters are the two largest segments. Trends driving the growth of the industry include the aging population and demand for minimally invasive treatment approaches to minimize the risk of strokes, clotting, infection, and vascular aneurysms. Rising trends in the number of oncology and renally impaired patients has created demand increases in the intravenous catheter segment accounting for the consistent growth patterns in the CAGR.

Urology catheters are the second highest yielding segment contributing to growth of the industry. Urology catheters include the dominant indwelling urinary catheters. Complications resulting from these catheters, such as urinary infections, are leading to the production of more technologically advanced, sterile, and disposable catheters contributing to the industry’s growth.

Key players in the catheter industry include Becton Dickinson and Company, B. Braun Melsungen AG, C.R. Bard, Inc., Medtronic, Boston Scientific Corporation, Johnson and Johnson, and Cardinal Health, Inc.
The global catheter’s market revenue is expected to climb to $55.98 billion by 2025. Market leaders include the United States, Asia, and Europe. The medical device industry as a whole is expected to grow steadily at 2.8% between 2017 and 2022, and the most innovative companies spend 7% of their revenue on R&D.

CONTINUED POPULARITY OF MERGERS AND ACQUISITIONS IN THE INDUSTRY

According to Kalorama Information, a marketing research firm, 153 major mergers and acquisitions were reported in the global medical device market between 2015 and 2016. This trend is expected to remain popular in 2017. Consolidation of medical device firms is a constant trend in the industry. In 2017 Becton Dickinson, a renal medical device firm is expected to acquire C.R. Bard, another renal medical device and catheter firm, for $24 billion dollars. This move will increase global presence and allow for expansion into vascular, hernia, cancer, and urology devices. In 2013, Baxter acquired "in-home dialysis heavyweight, Gambro." The purchase price for the deal was $4 billion. The deal resulted in an initial hit of a 6% drop in revenue. Although this transaction occurred over 24 months ago, it is pertinent to the renal medical device industry, as it involves two major players in the catheter and renal medical device industry.
Large mergers and acquisitions have also occurred on the cardiovascular medical device market including vascular and intravenous catheter components. Abbot acquired St. Jude Medical accounting for almost 20% of the cardiovascular market.
Despite the popular trend of mergers and acquisitions in the medical device market, viable competition continues to exist in the industry. Consolidation within the industry will also help navigate rigorous regulatory processes associated with the industry.
Disruptions in the industry related to mobile platforms and IoT are also predicted from companies, such as Apple, Google, and Amazon as medical companies pursue wearable device interface with mobile and digital platforms.

TRUMP ADMINISTRATION CHANGES TO MEDICAL DEVICE USER FEES, ACA, AND FDA POLICIES

The incoming Trump Administration has raised both optimism and concern within the medical device industry. In 2017, the Trump Administration temporarily repealed the medical device tax. Medical device industries are in hopes that the repeal will become permanent. In addition, companies are hopeful that the Trumps repeal of ACA will improve reimbursement so long as the US participants are able to keep their health insurance policies. On the contrary a policy statement issued by the administration is calling for Congress to push for 100% user funding. In addition, a budget re calibration doubles user funding, including medical device user fees or MDUFA from $1.2 billion in 2017 to over $2.4 billion in 2018 in to fund FDA activities. Presently the FDA receives 60% of its funding from pre-marketing activities by both pharmaceutical and medical device industries.
The policy statement places uncertainty on the industry in fear of contract renegotiation and rate hikes. The industry is also concerned that increasing fees may discourage innovation and hamper future start-ups by smaller more digital companies

CONCLUSION

To wrap up, minimally invasive, portable and wearable devices, and digitization will continue to drive innovation and growth within the medical device industry as a whole. The global catheter industry alone is expected to reach $55.98 billion by 2025. Advances in portable dialysis by Fresenius Medical Care and the development of a successfully tested wearable kidney device are positive determinants of the expected growth of both renal medical devices and intervention catheters. Above-mentioned trends have also created concern within the realm of cyber-security. Additional Industry trends, such as Federal regulation and consolidation within the industry are determinant of the industry’s future regarding growth and regulatory processes.

Sources
Sources