Bayer Boosts Coatings Presence in China

Posted by Josh Simon on Wed, Nov 23, 2011 @ 10:38

I found an interesting article talking about Bayer's coating business and its increased focus on the Chinese market.  Let me point out that the business of "coatings" is gigantic and comprises everything from paint, to industrial coatings, aerospace surfaces, and yes, even medical device coatings.  In this article, Bayer is talking about moving a multiple hundreds of million (perhaps over a billion?) dollar operation in a market just as large.

By contrast, hydrophilic coatings are an almost infintesimally small part of the overall business of "coatings".  Bayer does indeed have a hydrophilic coating it obtained when it bought the business from Lombard Medical. However, I am not sure that Bayer yet realizes that this market is infintesimally small compared to its other businesses. 

In my guestimation, the entire market for hydrophilic coatings, in the world, is not over $120 million.  (Although it is definitely growing fast.)  You have to remember, this is not medical device revenue.  This is revenue for hydrophilic coatings sold to the medical device companies that eventually put them on products.  Effectively, what a hydrophilic coating company sells is a "bottle of stuff", or a "bottle of goo", as Peg Palmer is often fond of saying.  How much money you can get for goo is limited to whatever license fees, royalties, or direct revenue you can get for it.  Unless you capture the entire market, your realistic expectations are likely to be smaller than the rounding error of one of Bayer's typical products.

 

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Tags: Hydrophilic Coating, coatings companies, coatings vendor, coating company, coating manufacturer, industrial coating, Coatings2Go, hydrophilic coating market, coatings manufacturer, coatings supplier, non-medical coating, industrial coatings, Bayer