Luneau Technology Operations manages to bring its ophthalmological equipment to Russia through localization after some failed attempts. Here is the experience of a medical device producer that had to find smart ways of entering the market instead of throwing money at the problem.
Luneau Technology Operations (LTO) has been trying to solve the Russian market puzzle since 2012. Even though 80% of the medical devices in Russia or the sales equivalent of 3 bn Eur were imported, it was hard for LTO to enter the market the standard way. The reasons were numerous, among them the newly accepted preferences for local medical devices, radical changes in registration procedures, “no risks and expenses accepted” policy of the distributors, and competition. After remaking its approach to Russia completely, for the last year Luneau Technology has been actively working on localization of the ophthalmological equipment with its Russian partners, Medica company and TechnoSpark Group.
For the time being, the localized devices are being tested in several major medical institutions. The contracts will be signed as soon as registration at Roszdravnadzor – the Russian analogue of the FDA – will be received in the beginning of 2019.
So, why contract localization option for the Russian market was chosen in the first place?
- In Russia locally produced medical devices are highly recommended for purchasing, especially for government contracts. At the same time, the share of those in the Russian market has never exceeded 20%. The laws that provide preferences for local equipment producers have been enforced in 2015-2018.
- The government strategy 2030 for Russian medical devices industry only deepens the trend of buying from the locals. Frequent changes in legislation do not make it easier to compete in the local market.
- It’s a pity but working with local distributors does not guarantee winning the supply contracts. It’s quite hard to compete when your winning company gets 15% less of the contract price or is expelled from the government contest altogether when 2 local participants are present. Unfortunately, these are real terms for the imported certified medical products.
What does a medical device localization timeline look like?
TechnoSpark and LTO representatives are signing an investment agreement for establishing Visionix Rus joint company
For Visionix, a brand of Luneau Technology localized in Russia, the journey restarted in the end of 2015. Representatives of LTO came to Russia to meet the distributors and decide whether they should close the Russian business altogether. It’s when the Chairman, Dr. Marc Abitbol, got acquainted with TechnoSpark Company representatives.
This new generation of technology entrepreneurs has made it possible to revamp LTO strategy in Russia and launch a project of localization of Visionix equipment.
Medica LLC is a subsidiary company of a private venture building company TechnoSpark.
Medica provides localization services for medical device manufacturers.
Contract localization is a special type of contract business. It allows foreign companies to lower the production costs and to enter the local market quickly.
Professor, Doctor of Medicine, Board certified ophthalmologist surgeon of highest category A.A.Kozhukhov, approbating localized autorefractometer Visionix VX130 in his clinic
What do we suggest?
- Localization scheme
- Contract manufacturing
- Selecting and managing local suppliers
- Obtaining all necessary certificates from Russian authorities
- Providing maintenance of the produced equipment
Parts of Visionix VX130 device localized in Russia by Medica LLC
TechnoSpark Group builds, grows and sells hardware startups and contract technology companies
TechnoSpark Group is a private venture building company that specializes in creating, developing, and selling high-tech startups in hardware industries, from energy storage systems to medical devices.
TechnoSpark cooperates particularly closely with leading international research centers and has years of experience as an industrial partner in the affiliation programs of IMEC and KU Leuven (Belgium), Solliance, Holst, TNO and ECN (Netherlands), Flex Enable (UK), etc. It has two international HQs: at High-Tech Campus Eindhoven, in the Netherlands, and in Tsinghua Science Park, Beijing, China.
Open-contract companies of TechnoSpark provide an opportunity for small series production
Precision metal working / Optical and industrial coatings / Genomics / Microbiology / Integrated electronics/ Flexible electronics / Metal and plastic 3D printers / Composite braiding / Integrated photovoltaics / Synthetic diamonds/ Industrial design
From new green-field near Moscow in 2014 to 7500m² of the technological facilities in 2016