Medical technologies company,
) recently announced that it will set up an Active Implantable
Medical Device ("AIMD") Research and Development ("R&D") Centre
in Singapore. It will be Greatbatch's first centre outside the
U.S., specifically built to cater to the Asia-Pacific medical
devices market. It is also the first multinational active
implantable products R&D centre in Singapore and in Asia.
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The establishment of the facility is in line with the company's
long-term strategy of expanding its footprint in emerging
healthcare markets. Management also believes that its announcement
to launch cost-efficient innovative technologies in the Asian as
well as worldwide markets will boost shareholders return.
QiG Group, LLC, the company's subsidiary, which designs and
develops new products for its core markets, will team up with
physicians and other industry leaders from Asia Pacific to
manufacture active implantable products for the growing
Neuromodulation and Cardiovascular markets.
Greatbatch has recognized potential research opportunities in MRI
Conditional Systems, Interventional Procedures, Atrial Fibrillation
ablation as well as therapies for obstructive sleep apnea and
obesity related to cardiovascular diseases. In the Neuromodulation
market, the company is already developing a new product called
Algostim, a spinal cord stimulator to treat patients with chronic
pain in the limbs and trunk.
The company chose Singapore as its base given the country's heavy
investment in R&D to develop its biomedical science sector and
well-endowed research institutes. Kulbir Sandhu has been appointed
as the head and Dr. Kaiser as the director of the Singapore R&D
Greatbatch is a leading producer and supplier of batteries,
capacitors and components used in implantable medical devices. The
company's top customers include
Johnson & Johnson
St. Jude Medical
Greatbatch has been acquiring complementary businesses over the
last few years in a bid to expand. The company has a strong
pipeline with a number of products currently in development that
should support growth in the long run.
However, soft Cardiac Rhythm Management and Orthopedic markets and
pricing pressure remain headwinds. We currently have a Neutral
recommendation on Greatbatch. The stock currently retains a Zacks
#3 Rank, which translates into a short-term Hold rating.