Werfen sees healthy prospects in China

Spanish diagnostics company Werfen is deepening its commitment to the Chinese market, expanding local manufacturing for advanced medical products in the world's second-largest healthcare market.

The Barcelona-based firm made its debut at the just-concluded Western China International Fair for Investment and Trade in Chongqing.

James Gallivan, vice-president of Werfen with full responsibility for China, said in an interview with China Daily that the country's demographic trends, expanding healthcare coverage and continued policy support are creating strong long-term demand for diagnostics technologies.

"China is a huge market and demographic shifts are leading to growing demand for healthcare. The government is building a more robust healthcare system to meet the growing demand," Gallivan said. "We are confident in the long-term potential of China's healthcare market."

Werfen has operated in China for more than three decades and established direct commercial operations in 2012. Since then, China has consistently been one of the company's fastest-growing markets globally, the executive added.

A key part of the company's China strategy has been accelerating localization of manufacturing. In 2025, Werfen began local production of its flagship GEM Premier 5000 blood gas analyzers and secured domestic regulatory approval for the ACL TOP 750 LAS, a hemostasis analyzer that can be integrated with a leading automation system.

Gallivan said local production helps the company respond more effectively to China's hospital needs.

Industry experts say foreign medical technology firms are increasingly expanding localization in China as the market evolves beyond a sales destination.

"The most fundamental driver is still end-market demand," said Sarah Li, partner expert at Roland Berger. "China has a huge patient base, a diverse disease spectrum and highly complex clinical application scenarios." She said foreign healthcare firms are increasingly shifting toward developing products tailored for China's clinical and policy environment.

Analysts also point to China's manufacturing scale, improving regulatory environment and integrated industrial supply chains as factors attracting further investment from global healthcare companies.

Werfen operates in more than 30 countries and sells products in over 100 markets, focusing on specialized diagnostic fields including hemostasis, acute care diagnostics, transfusion, autoimmunity and transplant testing.

"We do not simply provide diagnostic products — we deliver integrated solutions to our customers, including technical services and academic support," Gallivan said. "We want to be a partner, not a vendor."

Li said foreign medical device makers operating in China are increasingly moving from import-driven business models toward deeper localization in manufacturing, supply chains and research.

Competition in China's in-vitro diagnostics (IVD) sector has intensified as domestic manufacturers improve technological capabilities.

Gallivan said Werfen's strategy rests on continued investment in research and development and integrated diagnostics systems.

The company spends roughly 8-9 percent of annual revenue on R&D, with about 13 percent of its global workforce dedicated to innovation.

"IVD tests account for a relatively small portion of healthcare spending, but they influence around 70 percent of clinical decisions," he said.

Looking ahead, hemostasis and acute-care diagnostics are expected to remain the company's main growth drivers in China, supported by demand linked to aging and critical care.

Werfen also introduced locally manufactured ACL TOP 750 hemostasis analyzers and plans to roll out GEM Premier 3500 blood gas analyzers in China in the coming months.

lijing2009@chinadaily.com.cn