Mindray Medical International Limited
(
MR
), a leading Chinese medical device manufacturer, recently revealed
that it has agreed to buy a majority holding in HunanChangsha
Tiandiren Biotech Co., Ltd. ("TDR "). The terms of the deal were
not revealed as the agreement is not material toMindray's financial
results.
TDR is a Chinese producer of microbiology analysis offerings
focused on microbial identification, antibiotic susceptibility
testing ("ID/AST") as well as blood culture system.TDR , located in
Hunan, China, was founded in 1997.
Fast reporting of ID/AST test results and a continuous
monitoring blood culture system can yield improved management of
antibiotics. The Chinese ID/AST and blood culture system market was
valued at $139 million in 2010 and growing at 15% to 20% per annum.
The worldwide market was valued at $2.25 billion in 2010 with an
annual growth rate of 5%.
Mindray stated microbiology analysis is an important component
of In-Vitro Diagnostics (IVD ). The deal demonstratesMindray's
determination to grow itsIVD range of products.TDR's offerings will
blend into the company's pre-existingIVD offerings.
Mindray is a bellwether in the ChineseMedTech industry with a
solid international presence. A key distinction with domestic
competitors is that the majority ofMindray'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 its revenues.
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
forMindray'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">PHG
) and
Siemens
(
SI
). Our Neutral recommendation is supported by a short-termZacks #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
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