Johnson & Johnson Medical Companies Opens Innovation Center In China

Johnson & Johnson Medical (Suzhou) Ltd. has established an innovation center in China to design and develop medical devices and diagnostic products specifically for Asia’s emerging markets, primarily focusing on China and India. The Johnson & Johnson Medical Companies Asia Pacific Innovation Center located in Suzhou, China was officially opened by Alex Gorsky, Vice Chairman of the Executive Committee, Johnson & Johnson.

The Innovation Center is part of a Market Appropriate Innovation strategy aimed at better serving the people of the Asia Pacific. Gorsky said, “Johnson & Johnson products touch around one billion people every day. The important question is how do we help the next billion, many of whom live in Asia where healthcare needs are intensifying?” Gorsky explained, “Both China and India are experiencing an increase in the metabolic and chronic conditions such as cardiovascular disease, diabetes, obesity and cancer that many of our products diagnose or treat. With 125 years experience, we believe Johnson & Johnson is uniquely positioned to help address Asia’s changing and growing health needs.”

However, Gorsky acknowledged the need for change to increase reach into Asia. He explained, “The emerging markets are not new territory for Johnson & Johnson – our companies have been operating in India for more than 50 years and in China for nearly 30. However, for all our success, we believe we’ve only just scratched the surface in terms of the impact we can make on people’s lives.”

Michael del Prado, Company Group Chairman for Johnson & Johnson Medical Companies in Asia Pacific, explained the company’s approach to the challenge. He said, “We have an excellent portfolio of products that serves the developed markets very well but it doesn’t adequately meet all of the needs in Asia, particularly those of the mass market. This Asia Pacific Innovation Center in China, together with an existing one in India, will develop new products in Asia for Asia’s emerging markets.”

The strategy combines the strength and breadth of Johnson & Johnson’s seven medical devices and diagnostic franchises (Cordis, DePuy, Ethicon, Ethicon Endo-Surgery, LifeScan, Ortho Clinical Diagnostics and Vision Care) with the power of local knowledge. Del Prado said, “Inspired by local insights, our engineers are adapting and refining products from Johnson & Johnson’s outstanding portfolio and pursuing adjacent and new spaces to make medical devices that better suit the conditions and needs of Asia’s healthcare professionals and patients. This might include focusing on devices for specific disease states that are prevalent in Asia Pacific or developing simplified or smaller instruments that better suit the conditions and capabilities within a rural health setting. It may also include creating multi-use and disposable products that are more economical.”

The Innovation Center is the latest addition to the Johnson & Johnson Medical Companies campus in the Suzhou Industrial Park. The 278,000 square-meter site also contains a DePuy manufacturing plant which began operation in 2007 and a Global Finance shared services center opened in 2010 to provide general accounting services to the Johnson & Johnson companies in north Asia. Investment in the site to date totals $115 million.