Samsung Medison, the Korean based medical device OEM published it’s 2019 first-half results during August. These indicate that the business achieved continued and accelerated sales growth during the second quarter. The companies sales revenue reached 167,569 million won which represents +13.2% growth year-on-year (YoY). Growth in sales revenue was driven by the export of ultrasonic image diagnostic products and services, which grew by +18.7% YoY and accounted for approximately 80% of the companies sales revenues. Sales revenue from the companies other product lines including its x-ray solutions for digital radiography and computed tomography experienced a moderate contraction resulting in overall sales revenue growth of +13.2% YoY.
Sales results varied significantly by geographical region and overall growth was driven by sales from China and the USA. Sales revenue from North America, which has historically been the largest market for medical imaging systems, grew by +31% YoY. This was predominately driven by the export of the companies premium ultrasound systems, including it’s RS85 and HERA W10 platforms. The business is expecting continued and accelerating sales growth for the remainder of the year from premium ultrasound, particularly in response to the launch of its HERA I10 system which received FDA approval earlier this year.
Sales revenue from Asia grew by +85% YoY which was driven by continued sales growth from China. This is impressive growth from a market where competition is intensifying due to the growth of midsized domestic companies which, generally speaking, offer high price competitiveness although increasingly technological also. The premium WS80 ultrasound system configured for gynaecology applications performed well along with the premium RS80 platform for general imaging. The company anticipates future sales growth from the region and has been strengthening its local sales infrastructure across selected provinces. Sales revenues from Europe contracted by -6% YoY although revenue growth at the individual product level varied significantly. For example, the sale of premium ultrasound systems for obstetrics and gynaecology applications were notably strong.
The company reported that maximum production capacity at its Hongcheon based manufacturing plant decreased to 7,475 units during the first half and production volumes for the ultrasonic diagnostic business increased to 6,830 units indicating +9% growth YoY. At an overall portfolio level for the ultrasonic diagnostic business, the average price of its products increased by approximately +8% YoY supporting the management reports of increasing sales revenues from its premium ultrasound propositions.
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