Will Siemens Medical become the next GlaxoSmithKline?

According to the report of the interface news, Siemens Medical (hereinafter referred to as Siemens) was accused of bribing more than 1,000 hospitals in China after successively undergoing split independence and dealer rights protection.

According to Reuters, the multinational medical device giant Siemens was investigated by the industry and commerce department in China for allegedly obtaining a hospital exclusive purchase contract by bribery. According to sources, the State Administration for Industry and Commerce accused Siemens and its dealers of adopting a violation of the competition law to obtain a high-priced disposable consumables for hospitals to purchase these devices by donating medical devices.

When responding to the reporter's inquiry, Siemens said that he was not aware of the situation involved in the report, and said that a branch of the Shanghai Administration for Industry and Commerce is understanding the market and business model of the Siemens Medical Laboratory Diagnostics business. It is widely used in the industry. Contrary to recent media reports, this work does not involve any corruption issues and is not related to any personal interests.

According to Bloomberg News, after Xi Jinping publicly announced the acceleration of localization of medical equipment last year, the State Administration for Industry and Commerce launched commercial bribery for the three foreign medical device giants GE, Siemens and Philips (collectively "GSP") in China. Investigation of price monopolistic behavior. At present, the regulatory body has not yet decided whether to formally file a case, and whether the above suspect is established is still under investigation.

As one of the world's three largest medical device manufacturers, Siemens Healthcare's core business is the large-scale imaging and diagnostic equipment used in hospitals. The German company entered China in 1872, and its market share in China once surpassed competitors GE and Philips to the top. However, getting the first origin has sacrificed the stability of the company.

At the beginning of this year, Siemens was involved in disputes with distributors in China. Siemens was exposed from 2011. Under the leadership of the newly appointed CEO Wu Wenhui, a series of radical measures were taken to complete the speeding development plan, which made it difficult for dealers to load excess targets and produce inseparable fake orders.

After discovering a large number of unfilled orders, Siemens headquarters issued a series of new policies, including the confiscation of previous old orders, which means that the dealers have paid 5%-10% of the contract deposit, which eventually led to the nationwide distributors starting to collectively Responsible to Siemens.

The dispute has not yet been finalized, but the radical approach taken by Siemens China to exceed its growth targets is evident.

In China's high-end medical device market, foreign medical devices occupy an absolute monopoly position. Siemens, GE and Philips account for more than 70% of the market, while the domestic equipment market share is less than 10%.

Some sources believe that the investigation of Siemens also released a signal that after the bribery incident in GSK China, the supervision of the medical industry spread to medical device manufacturers, also hinted that China is pushing hospitals to use more local medical device products. And gradually get rid of dependence on imported medical devices.

Among the three major foreign-funded medical device manufacturers, Siemens is also the deepest in connection with domestic medical device companies.

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