China Medical Buys DNA Testing Businesses

Beijing, China-based China Medical Technologies has completed the purchase of the hybridization businesses of Supreme Well Investments Ltd. and Molecular Diagnostics Technologies Ltd. for $136.8 million.

With the acquisition China Medical Technologies, a manufacturer of ultrasound products and in-vitro diagnostic systems, said it would develop and commercialize the fluorescent in situ hybridization (FISH) technology to diagnose prenatal and postnatal disorders.

In addition to the cash price, $40 million will be paid in cash or shares if certain operating and financial milestones are met, China Medical said.

China Medical expects that the deal will boost earnings in fiscal 2008 and beyond.