Samsung Medison, which has suffered from sluggish earnings for years and suffered from the merger, was handled in the first place in three years. However, there is still a long way to go to compete with global companies in the world market.

According to Samsung Medison on April 5, the company is now targeting double-digit growth internally this year. It is the company’s vision to rise to the top of the market for ultrasonic medical devices in 2021, which will continue to grow by more than 10% each year.

Samsung Medison achieved sales of KRW 302.6 billion and operating profit of KRW 6.5 billion last year. Sales grew 16% YoY, with sales of KRW 200 billion after sales of Samsung in 2011 reaching KRW 300 billion and operating deficit of KRW 25.2 billion turned into a surplus. The company said that it has passed the "first-class" solution of CEO Dong-Soo Dong, who was put in charge of normalizing management in 2016, but he cannot put a strain on it. Last year`s results, the former CEO said at the general shareholders` meeting held last month, "We are just normalizing our business."

Meanwhile, the global market for ultrasonic diagnostic devices is about USD 6 billion, with global companies such as GE, Philips and Siemens holding over 70% of the market. Samsung Medison, the world`s sixth largest market share, has a 5% share. The company plans to expand its market share with a strategy of supplying high-end products to the top 300 hospitals in the global market, recognizing its technological prowess and increasing supply to the developing countries. Continue to secure product competitiveness through technology development.

Since this month, Samsung Medical has moved to the Pangyo office, where Samsung C & T has left the construction division, and works with Samsung Electronics` medical device division. We will start to develop new concept ultrasonic products by raising synergy of technology development and investing funds to sell existing office building. It is the first in the industry to try fixed-type ultrasonic diagnostics.

In the case of Samsung Medison, Samsung Electronics` backward support is not enough. Samsung Electronics` digital X-ray products launched in the market have been in the red, and all-new CT and MRI that have been developed have not reached the stage of release. Although it is showing special products such as mobile CT and MRI for limbs, it is not yet possible to have a face-to-face match.

Experts point out that bold M & A and investment are necessary at the group level in order for Samsung`s medical equipment business to grow to a level where it competes with global companies. In response, Samsung Medison dismissed it as "there is no plan for merger or listing with Samsung Electronics." For the time being, the company will focus on securing its internal competitiveness rather than attracting large-scale investment.

Samsung Electronics, in 2010, took over the acquisition of `Ray`, a digital X-ray company, and `Nexus`, a US medical diagnostic device maker in 2011 and 2013.

In the case of global medical device market, strategic mergers and acquisitions are actively taking place in order to secure product competitiveness and market in a short period of time, and to realize economies of scale. "But the success or failure of Samsung Medical`s ultrasound diagnostic business is expected to be the basis for the group to decide on its investment in the medical device business.”

By Nam Do Yeong namdo0@


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