Image source: Visual China
A month ago, Abbott, a cool techs product for diabetics, was mistaken for YY founder Li Xueling as an "implantable chip."
Unlike traditional finger blood collection and blood test using test strips, the transient uses the high-pressure jet principle to allow insulin to enter the skin through high-pressure jets. The user scans the sensor placed on the back side of the upper arm to monitor blood glucose at any time.
After sorting out the "Hundred Sugar Battle" in the past few years, Xiang Yu, general manager of Abbott Diabetes Care China, found that "many have relied on Abbott Instant to provide better information decisions for diabetes management."
But Xiang Yu told Titan Media that the value of instant products is not the collection of data and the drawing of curves, but the association space of the values themselves.
“When you have large, multi-level, and comprehensive blood sugar fluctuation data, you can do a lot of things, and the value creation space is very large. Regardless of medical insurance, government public decision-making, new product development by pharmaceutical companies, or doctors for community disease management, Abbott’s data can play a bigger role in these four dimensions, even in more dimensions.”
Xiang Yu told the titanium media that there are many breakthroughs in the function of the second generation products. One of them is the early warning function. Patients can choose to turn the alarm on or off. Different patients can make judgments according to their different needs. At the same time, the second generation of products can also allow data to be transmitted to the receiver or mobile phone without interruption, without worrying about the loss of probe data.
Cut into the slow disease management solution
With 114 million diabetics in China, it hasn't reached 1 percent coverage since it went public in 2016, but Xiang Yu believes demand has always been much greater than expected.
Xiang Yu felt that the reason for the low coverage was the perception that even in the age of collecting blood from fingers and measuring blood sugar with test papers, the monitoring rate of ordinary Chinese lags behind the relevant guidelines and other major markets in the world. "in 2016, Abbott, in collaboration with the Chinese Physicians Association, found that Chinese doctors recommended that diabetics get blood sugar tests on their fingers a day at a discount to the management guidelines, but fewer than 30 patients were able to comply with their doctor's advice. "
Instant sales topped $304 million in the quarter, up 101 percent from last year, according to third quarter results from Abbott. It now covers 44 countries with more than 1 million users.
The performance of the instant in the Chinese market was described by Xiang Yu as "a big gap." The biggest reason for this gap is the price. In China, it is a self-funded product. It does not enter medical insurance. The coverage of patients is not as good as that of the United States, Japan, Europe, Australia and other countries that can be reimbursed through medical insurance.
Titanium media observed that in the official Taobao store of Abbott medical equipment, an Abbott instantaneous glucose detector, priced at 1368 yuan, includes a scanner and two sensor probes that can be worn for up to 14 days. But this set of prices and traditional blood sugar meter, the price is not low.
In addition to regional coverage, transient feeling is also trying to get out of the diabetes community. Xiang Yu told the titanium media that instant feeling is not only designed for patients with diabetes, there are many other people in the use of instant feeling, marathon runners through instant monitoring to determine when to supplement protein, when to supplement sugar; Some people are used to lose weight, do pre-diabetes prevention, prevent gestational diabetes.
In addition to the second-generation products already on the market, the current three-fourth generation products are being developed. Xiang Yu revealed that “the product upgrade logic is faster, smaller, better, more functional, and more close to the user's needs.”
40% of sales come from emerging markets
In 2017, Abbott had global sales of $27.4 billion and China contributed $2.1 billion. 35 percent of global sales come from the United States, 25 percent from mature markets (Canada, Western Europe, Japan, Australia) and 40 percent from emerging markets (India, China, Russia, Brazil).
Abbott has been in China for more than 30 years, but unlike most multinational companies, Abbott does not have a position as CEO of China, but each business has a head of China. At present, Abbott has formed four major business segments of diagnostics, nutritional products, medical devices and pharmaceuticals.
Abbott Business carding, Titanium Media Cartography
"Abbott's overall medical device business grew very high in the third quarter, and in addition to innovation, an important engine of growth came from emerging markets, and Abbott China was a strong driver of global performance." Abbott heart rate management and heart failure business vice president, China general manager Yu Jinbao said.
In the third quarter of 2018, Abbott Medical Devices contributed 37% of sales, totaling $2.8 billion, an increase of 9.8% year-on-year. This section includes three major business segments: cardiovascular, diabetes care, and neuromodulation.
In cardiovascular devices, Abbott and Medtronics, Boston Science and Edward Life Sciences are collectively known as the Big four. Abbott's diabetes care business sold $304 million in the quarter, up 101 percent from the same period last year.
Abbott's drug sales totaled $1.1 billion in the third quarter, up 5.9 percent from the same period last year. Its main growth was in emerging markets, including India, Brazil, Russia and China, and other emerging market countries. Abbott's sales in these emerging markets rose 6.8 percent. (first Titanium Media, author / Fu Mengwen)