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ABHI USA Mission – Texas 14 - 21 May 2016
There is recognised opportunity to enhance UK medical technology exports, especially to the USA,
the largest medical device market in the world. 12 months ago, ABHI conducted a comprehensive
export survey of its members. More than 100 leading UK medtech companies provided feedback on
current and future market focus. The message was clear: that the US market was, and is, a top
priority for both new and experienced exporters.
Over the last eight months ABHI, with partners both in the UK and US, has begun developing a
strategy to support UK companies’ growth in the US market. The approach has been to select and
focus on one single state that has the right conditions and ecosystem to support companies’ growth,
to use as a ‘soft landing’ for UK companies looking to grow or enter the market. This model, with
some adaption and over time, can then be deployed in other parts of the USA.
After extensive research, which included a number of market visits, Texas has been selected as the
first market due to its considerable attributes.
Texas has a significant and diverse population, standing at over 27m. It has four key cities: Austin,
the state capital, with its digital and high technology focus; San Antonio, with its extensive US
military research and hospital systems; Houston, which has the largest medical complex in the world
in the Texas Medical Center (TMC); and Dallas Fort Worth, home to many of the largest health
systems and GPOs in the US.
Opportunities exist across the state and strengths have been identified in a range of therapeutic
areas, including cardiology and oncology, radiology, neurology diabetes, paediatrics and
orthopaedics and trauma, to name a few. Recent engagement at the TMC, Houston Methodist and
MD Anderson in Houston, and with US Military and University Hospital Systems in San Antonio, has
shown a willingness and openness to work with industry to develop and adopt innovative
technology solutions into these hospital systems.
Texas is, of course, an economic powerhouse. It has the second largest GDP of any US state at $1.7
trillion and as a sovereign country would be ranked the 12th largest economy in the world by GDP.
This financial firepower is allowing the state to invest heavily and expand its health offering to
achieve its ambition to become a world leader in health and life sciences. Houston is playing a
leading role with the TMC, a collection of over 50 health clinics, including 21 leading hospitals, which
receives more than 7.2 million patient visits each year. The TMC recently opened the TMCx, a life
sciences accelerator, which now includes Johnson & Johnson’s JLABs, with the purpose of translating
the $3.7 billion dollars of medical research grant funding in the last five years into commercial gain,
and demonstrates just how serious Texas is in developing its life sciences industry.
Texas has the highest proportion of hospitals of any state in the US and is ranked 3rd in the US on
overall healthcare expenditure, beating the city of London and even countries such as Portugal.
Texas is the 7th largest health economy in the world, and has significant ambition to invest and
develop its healthcare industry over the next 10 to 20 years.
Its close ties with Mexico and strong links to the rest of Latin and South America make it a great
state with which to springboard into many emerging markets. Its industrial base is significant, with
many quality local manufacturing and logistics operations. Houston has the largest sea port in the
south of the USA and exports from Texas recently topped $260 billion, more than California and New
York combined. Collaborations and knowledge share between leading institutions and industries,
including NASA, the oil and gas sector and medical communities, with support from leading
academic institutes like RICE University and University Texas System, are all helping to create the
right conditions for companies to invest in the state.
Texas prides itself on being business friendly and is one of only two states in the US which does not
attract local tax and has a relatively high quality and comparatively low cost workforce.
ABHI’s recent experience in Texas has pointed to an openness, acceptance and real want to engage
with UK medical technology companies. Over the three recent visits to the state, the access to
hospital C-Suite, clinical leaders and KOLs has been unprecedented. ABHI’s focus over the coming
visits to Texas will be on creating demand and building deeper relationships, providing small groups
of UK companies with the opportunity to capitalise.
The purpose of the first trade mission in May is to help create demand for product, introduce
companies to customers and help introduce partners for the UK delegation who will support their
growth in the state and beyond. The visit will also, ABHI believes, help prove the effectiveness of
focusing on Texas, while continuing to inform their future approach to the USA.
ABHI is currently seeking 20 UK SMEs to join this trip, which will be led by Peter Ellingworth, CEO of
ABHI and Phil Kennedy, Chairman of ABHI. They are delighted to have the support of Karen Bell,
Consul General of Houston and the backing of UK Trade and Investment, who have made the Texas
focus a dedicated trade campaign for the government.