Corporate
News release
TopTOKYO, JAPAN - September 3, 2020 - Terumo Corporation (TSE: 4543), a global leader in medical technology, today announced that it has joined in a Chinese fund operated by CD Capital, a Shanghai-based venture capital firm. The invest term will be five years and total size of the fund and the size which Terumo will invest are not disclosed.
CD Capital is a venture capital firm specialized in life sciences and medical technology. They currently manage multiple funds (both USD and RMB funds) with total size of approximately USD 600 million and have made over 40 investments. They have been recognized as one of the top healthcare funds in China in terms of distributions to paid-in (DPI). The leadership of the firm leverages their extensive experiences with innovative healthcare businesses, to help navigate the start-ups through product development, clinical trials, regulatory approvals, and commercialization.
Venture investing in the medtech field can complement internal R&D with new technology, expanded strategy, and also further complement business development and acquisition. In that light, Terumo has utilized this strategy previously, as a Limited Partner of a fund in the U.S. since 2013, and has reviewed more than 2,000 start-ups over the last 6 years. While investing in the fund, Terumo also directly invested in multiple start-ups. The Company is expanding these activities, starting to invest in two U.S. funds with USD 50 million in 2019.
Terumo has a quarter century history in China. In 1995, it established Terumo Medical Products (Hangzhou) Co., Ltd. and commenced to manufacture and export its products including medical tubes. In 2000s, it founded sales offices and constructed Chinese distribution network mainly for the advanced products such as interventional catheters, oxygenators, diabetic products. Acquiring Essen Technology (Beijing) Co., Ltd., a Chinese interventional device company, in 2018, Terumo has built its platform of development and manufacturing to meet Chinese customer needs rapidly.
The joining in the fund enables Terumo to be involved in Chinese novel technologies in early stage. The Company aims to expand its Chinese domestic product portfolio and to develop new business model, taking in technology of medical devices and digital health which fit Chinese medical needs.
About Terumo
Terumo (TSE: 4543) is a global leader in medical technology and has been committed to “Contributing to Society through Healthcare” for 100 years. Based in Tokyo and operating globally, Terumo employs more than 30,000 associates worldwide to provide innovative medical solutions in more than 160 countries and regions. The company started as a Japanese thermometer manufacturer, and has been supporting healthcare ever since. Now, its extensive business portfolio ranges from vascular intervention and cardio-surgical solutions, blood transfusion and cell therapy technology, to medical products essential for daily clinical practice such as transfusion systems, diabetes care, and peritoneal dialysis treatments. Terumo will further strive to be of value to patients, medical professionals, and society at large.