Chinese medical devices major
Mindray Medical International Limited
) recently revealed a voluntary recall impacting its A3/A5
Anesthesia Delivery System. The company launched the recall on
account of an admitted chance of a leak in the system due to
inappropriate positioning of the carbon dioxide absorbent gasket
in the canister.
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Clients with a system (s) that may be recalled were informed via
postal mail on August 8, 2012. As of November 14, 2012, about 70%
of the sets impacted by this action had been rectified. The
matter is rectified by the substitution of the gasket in the
canister by a Mindray representative.
Sets with the impacted gaskets were dispatched between May 31,
2011 and July 15, 2012 in Australia, Latin America and the U.S.
The company has informed the Food and Drug Administration (FDA)
about the voluntary recall. Quality problems and negative
reactions may be reported to the FDA by fax, normal mail or via
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 new products.
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
). The stock currently retains a Zacks #3 Rank, which translates
into a short-term "Hold" rating.