Under the Radar: From thermometer to medtech solutions – How is Japanese medical equipment maker Terumo Corporation executing its "From Devices to Solutions" innovation strategy?

The Evening Runway with Hongbin Jeong, Roshan Gidwani and Chua Tian Tian

Today we’re going to talk about the journey a Japanese thermometer manufacturer took to transform itself into a medtech player and increasingly a medical solutions provider.

Founded in 1921 to address a stoppage of thermometer imports to Japan amid World War I, our guest Terumo is now a global leader in medical equipment with a footprint in over 160 countries and regions.

Its range of products has also broadened over the century, and now extends beyond thermometers to include vascular intervention, cardio-surgical solutions, cell therapy technology and even diabetes care and peritoneal dialysis treatments.

Why are we speaking to Terumo you might ask? Well, Terumo is an interesting company to look at because of just how fast society is changing in recent years, and how societal changes are creating new and more complex healthcare challenges for medtech players.

These include the increased prevalence of chronic diseases amid an ageing population, the drive to improve healthcare efficiency through digital technologies and the need to balance advancing healthcare versus cost effectiveness.

All that means the firm needs to rethink its positioning strategy and value proposition to remain relevant amid the evolving external environment.

To do so, Temuro had in December 2021 came up with a 5-year innovation strategy called GS26, in which the company plans to reposition itself from a device maker to a solutions provider.

But what were some of the business decisions made in line with the strategy in the three years since 2021, particularly within Asia, and how would the firm assess its success in implementing the strategy?

Meanwhile, Terumo had in August this year launched a new corporate venture fund called Temuro Ventures to invest in early stage companies. But how far will this help Temuro further innovate and meet ever changing healthcare needs?

On Under the Radar, The Evening Runway’s finance presenter Chua Tian Tian posed these questions to Probir Das
Group Executive Officer, Terumo Corporation/ Chairman, Terumo Asia Holdings, Vice Chairman of APACMed Board of Directors.

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