Mindray Medical International Limited
(
MR
), a leading Chinese medical device manufacturer, recently revealed
that it was chosen by HealthTrust Purchasing Group, ("HealthTrust")
as a vendor of anesthesia offerings and other goods for 10,600
ambulatory care outfits and 1,400 acute care installations. Mindray
stated that it valued its alliance with HealthTrust on account of
the latter's compliance record and large number of affiliates.
As per their understanding, Mindray can provide its A Series
Anesthesia System Solutions to HealthTrust affiliates. The A3 and
A5 offerings from this range give anesthesiologists not only user
comfort but also high-class performance. The fifteen-inch screen
permits technicians to comfortably choose ventilation positions so
that they can devote more energy to care giving.
Mindray is a bellwether for the Chinese medical devices
industry. The company has a large domestic sales infrastructure,
which gives it better access to medium-sized county hospitals. In
China, it beats other multinationals on price and defeats local
players, who have cheaper products, on brand recognition.
In western markets, the company targets mid-market,
price-sensitive customers. A key distinction with domestic
competitors is that the majority of Mindray's products have CE Mark
and/or FDA clearance.
Mindray has a solid product pipeline. The company introduces
about 10 new products each year. In fiscal 2011, it launched as
many as 13 new products. New products contribute in a major way to
the company's revenues. The client base of the company is widely
dispersed on a net revenues basis and is marked by low client
concentration.
The medical device industry is characterized by quick product
development, rapid technological advances, intense competition and
a strong emphasis on proprietary products. The company has entered
the premium segment globally where its competitive advantage is
still evolving. Healthcare reform, in both China and the U.S., may
reduce demand for Mindray's products. Competition is fierce and
leads to price erosion over time.
Mindray's competitors, in different niche segments, include
General Electric
(
GE
),
Philips
(
PHG
) and
Siemens
(
SI
), among a host of other players. Our Neutral recommendation is
supported by a short-term Zacks #3 Rank (Hold).
GENL ELECTRIC (
GE
): Free Stock Analysis Report
MINDRAY MEDICAL (
MR
): Free Stock Analysis Report
KONINKLIJKE PHL (
PHG
): Free Stock Analysis Report
SIEMENS AG-ADR (
SI
): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research