Mindray Medical International Limited
(
MR
), a leading Chinese medical device manufacturer, recently revealed
its intended participation in the 67th China International Medical
Equipment Fair ("CMEF"). The event will take place between
April 17, 2012 and April 20, 2012 in Shenzhen, China.
The company will showcase over 90 offerings from its three
business lines. The broad segments are medical imaging, patient
monitoring and life support as well as in-vitro diagnostic.
Included among the exhibits are three latest offerings from the
company, namely, the SynoVent E5 and E3 ventilators, the BS-2000
biochemistry analyzer and the DC-8 ultrasound system.
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 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
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