Chinese medical devices major
Mindray Medical International Limited
) recently revealed the completion of its takeover of Wuhan
Dragonbio Surgical Implant's orthopedics operation, in line with
the terms of the definitive agreement inked on June 6, 2012.
Mindray continues to provide guidance on a full-year basis. The
company forecasts sales growth in excess of 18% for 2012. It also
expects adjusted net income for the year to increase a minimum of
13% year over year. The guidance does not take into account any tax
advantage on account of key software enterprise status. The
forecast for capital expenditure for 2012 is about $90
Mindray is a bellwether in the Chinese MedTech industry with a
solid international presence. A key distinction with domestic
competitors is that the majority of Mindray's products have CE Mark
and/or Food and Drug Administration ("FDA") clearance.
Mindray maintains a decent product pipeline and brings out
several new products each year. New products contribute in a major
way to Mindray's revenues. In fiscal 2011, the company launched 13
The company has entered the premium segment globally, where its
competitive advantage is still unclear. Also, on the negative side,
health care reform in 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 GE
Healthcare, a part of
). Our Neutral recommendation is supported by a short-term Zacks #3
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