Prime Highlights
- USM Healthcare is Vietnam’s only domestic stent manufacturer with a fully integrated production system.
- Nissha will use its US and Japan networks to expand CDMO services across Southeast Asia.
Key Facts
- Nissha is a Japan-based company with priority focus on medical devices, pharmaceuticals, and healthcare products.
- CDMO refers to contract design, development, and manufacturing services offered to other medical device companies.
Background
Nissha, based in Japan, is now a 100% shareholder of USM Healthcare Medical Devices Factory Joint Stock Company. It’s a sign that Nissha is increasingly interested in the medical field as one of its main strategic focuses, with medical devices, pharmaceuticals and healthcare products being strategic priority areas.
USM Healthcare manufactures and markets orthopedic devices, minimally invasive stents for catheter-based applications, and stents for cardiology. It has a system from product design to regulatory approval and from manufacturing to sales that is vertically integrated. The end-to-end control provides USM Healthcare with an advantage in pricing compared to competitors.
This is a strategic deal for Vietnam’s medical device market. The only local manufacturer of stents in the US is USM Healthcare. It has been steadily increasing in recent years, thanks to government policies encouraging the production of locally-made medical devices. That growth should keep accelerating with Vietnam’s ongoing investment in the healthcare sector’s infrastructure, analysts said.
In addition to the products, USM Healthcare provides contract design, development and manufacturing organisation services (CDMO) to other medical device manufacturers. This acquisition will add a new manufacturing footing in Southeast Asia for Nissha, which had aimed for the US market for its CDMO ambitions.
Nissha will leverage its established customer relationships in the US and Japan, along with its design, development and quality management capabilities, to bolster the current operations of USM Healthcare. The group also plans to further expand its medical device CDMO services to the wider Southeast Asian market, which is experiencing strong growth as the region’s economy and healthcare system evolve.
