Tokyo — Terumo Corporation (TSE: 4543 Section 1) announced details of the establishment of Terumo Russia LLC, a subsidiary in Russia. Scheduled to commence operations from April 1, 2013, the company will have the mission of expanding business activities in Russia.
As a part of efforts to promote business in Russia, the Company has to date engaged in sales and marketing activities through its wholly owned subsidiary Terumo Europe NV In 2006, steps were taken to establish a representative office in Moscow for the purpose of researching the Russian medical market.
The Russian government is promoting its health-care reform as a part of an overall national strategy. As a result of this strategy, the scale of the medical device market in Russia is projected to double1 from approximately US$6 billion in 2011 to around US$12.2 billion in 2016. With cardiovascular disease currently the leading cause of death,2 significant advances in the promotion of interventional treatments and cardiovascular surgery are also anticipated.
Engaging in sales and marketing activities that are deeply rooted in the local market, the Company is targeting an increase in sales from ¥1.7 billion in fiscal 2011 to ¥5.0 billion in fiscal 2016, focusing mainly on its mainstay catheter as well as artificial lung-related products.
Terumo has identified the long-term goal of becoming a company with a global presence. To achieve this, the Company is working to expand its business in a newly emerging market. The decision to establish a local sales subsidiary in Russia is therefore one of several priority measures designed to achieve its long-term goal.
1 Espicom survey: extract from the JETRO Sensor, May 2012 edition
2 Causes of death in Russia (2010): 1. Cardiovascular disease 61.9%; 2. Cancer 15.7% (Source:The State Committee of the Russian Federation on Statistics; March 2012 Extract from "the Medical Device Market and Regulations in Russia" the Japan External Trade Organization (JETRO)
Profile of the newly established subsidiary in Russia
Name: Terumo Russia LLC
Location: Moscow, Russia
Capital: 30 million rubles (approximately 750,000 euro)
Equity: Terumo Europe NV3 100%
Business Activities: Trade (export and import), wholesale, repair, and after-sales service of medical devices
Established: February 15, 2013
Business Commenced: April 1, 2013
3 Terumo Europe NV is a wholly owned subsidiary of Terumo Corporation.
(Notice) Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo based on limited information available at the moment of disclosure. Accordingly, it should be noted that actual results may differ from those forecasts on projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.
Any market share information in this press release is partly derived from the company's independent research.
