Mike Barbella01.10.12
Mindray Medical International Limited is forging some new paths this year. The Shenzhen, China-based medical device manufacturer recently purchased controlling stakes in two companies serving largely untapped markets.
For nearly a month now, Mindray has owned a majority of shares in Zhejiang Greenlander Information Technology Co. Ltd. and Hunan Changsha Tiandiren Biotech Co. Ltd. Both firms are located in China, with Zhejiang Greenlander located 650 miles northeast of Shenzhen in Hangzhou and Hunan Changsha situated nearly 400 miles from Mindray’s headquarters in the south-central province of Hunan. Terms of the agreements were not disclosed.
Mindray executives claim the acquisitions will allow the firm to tap the growth of two markets with high earnings potential—healthcare IT and in-vitro diagnostics. Mindray expects healthcare IT—particularly Radiology Information Systems (RIS) and Picture Archiving and Communication Systems (PACS) technology—to grow more than 20 percent annually for the next three to five years. Domestically, the RIS and PACS market is worth about $142 million (according to 2010 data), but internationally it is worth nearly 25 times as much, or $3.5 billion, and is estimated to grow 10 percent annually.
Founded in 2003, Zhejiang Greenlander is a healthcare IT vendor specializing in RIS and PACS technology. RIS is an IT-driven database utilized by radiology practices to save and distribute patient-related radiological data and imagery; the technology encompasses outcome reporting, patient scheduling and tracking, and picture-tracking capabilities. PACS technology, on the other hand, stores and provides access to medical images from various sources. Both systems are used frequently in the endoscopy, ultrasound, radiology and pathology departments of hospitals to archive digital images and “communicate management solutions,” according to Mindray.
“We are very excited about this transaction, which we believe will be beneficial to both Mindray and [Zhejiang] Greenlander,” Mindray Chief Strategic Officer Minghe Cheng said in a news release. “Greenlander’s IT service platform will be a great addition to our existing medical imaging systems. Healthcare IT is attracting significant private and public healthcare spending and we believe the market for products and services in this area is very promising. This transaction will help Mindray get a head start in the rapidly growing healthcare IT business and allow us to provide our customers with more comprehensive solutions.”
Mindray’s customers also are likely to get more comprehensive solutions in the in-vitro diagnostic realm, particularly in microbial identification and antibiotic susceptibility testing (ID/AST). Industry estimates put that market value at $139 million domestically in 2010 and project growth rates of between 15 percent and 20 percent annually. Worldwide, the market—worth $2.25 billion in 2010—is estimated to grow 5 percent annually.
Hunan Changsha is considered a domestic leader in the ID/AST sector, manufacturing microbiology analysis solutions used by clinical laboratories to identify microbes, perform antibiotic susceptibility testing and recover pathological organisms (through blood culture systems). Faster reporting of ID/AST test results and a continuous-monitoring blood culture system significantly can improve antibiotic management, experts claim.
Mindray executives said the alignment with 14-year-old Hunan Changsha will compliment the company’s strength in analyzers.
“This transaction shows our commitment to expand the IVD product portfolio,” Cheng said. “Microbiology analysis is an important segment within IVD. It is an emerging yet promising category in China, based on favorable domestic polices to develop the overall industry as well as the government’s specific focus on preventing antibiotic overuse.”
Mindray’s U.S. corporate headquarters is located in Mahwah, N.J.
For nearly a month now, Mindray has owned a majority of shares in Zhejiang Greenlander Information Technology Co. Ltd. and Hunan Changsha Tiandiren Biotech Co. Ltd. Both firms are located in China, with Zhejiang Greenlander located 650 miles northeast of Shenzhen in Hangzhou and Hunan Changsha situated nearly 400 miles from Mindray’s headquarters in the south-central province of Hunan. Terms of the agreements were not disclosed.
Mindray executives claim the acquisitions will allow the firm to tap the growth of two markets with high earnings potential—healthcare IT and in-vitro diagnostics. Mindray expects healthcare IT—particularly Radiology Information Systems (RIS) and Picture Archiving and Communication Systems (PACS) technology—to grow more than 20 percent annually for the next three to five years. Domestically, the RIS and PACS market is worth about $142 million (according to 2010 data), but internationally it is worth nearly 25 times as much, or $3.5 billion, and is estimated to grow 10 percent annually.
Founded in 2003, Zhejiang Greenlander is a healthcare IT vendor specializing in RIS and PACS technology. RIS is an IT-driven database utilized by radiology practices to save and distribute patient-related radiological data and imagery; the technology encompasses outcome reporting, patient scheduling and tracking, and picture-tracking capabilities. PACS technology, on the other hand, stores and provides access to medical images from various sources. Both systems are used frequently in the endoscopy, ultrasound, radiology and pathology departments of hospitals to archive digital images and “communicate management solutions,” according to Mindray.
“We are very excited about this transaction, which we believe will be beneficial to both Mindray and [Zhejiang] Greenlander,” Mindray Chief Strategic Officer Minghe Cheng said in a news release. “Greenlander’s IT service platform will be a great addition to our existing medical imaging systems. Healthcare IT is attracting significant private and public healthcare spending and we believe the market for products and services in this area is very promising. This transaction will help Mindray get a head start in the rapidly growing healthcare IT business and allow us to provide our customers with more comprehensive solutions.”
Mindray’s customers also are likely to get more comprehensive solutions in the in-vitro diagnostic realm, particularly in microbial identification and antibiotic susceptibility testing (ID/AST). Industry estimates put that market value at $139 million domestically in 2010 and project growth rates of between 15 percent and 20 percent annually. Worldwide, the market—worth $2.25 billion in 2010—is estimated to grow 5 percent annually.
Hunan Changsha is considered a domestic leader in the ID/AST sector, manufacturing microbiology analysis solutions used by clinical laboratories to identify microbes, perform antibiotic susceptibility testing and recover pathological organisms (through blood culture systems). Faster reporting of ID/AST test results and a continuous-monitoring blood culture system significantly can improve antibiotic management, experts claim.
Mindray executives said the alignment with 14-year-old Hunan Changsha will compliment the company’s strength in analyzers.
“This transaction shows our commitment to expand the IVD product portfolio,” Cheng said. “Microbiology analysis is an important segment within IVD. It is an emerging yet promising category in China, based on favorable domestic polices to develop the overall industry as well as the government’s specific focus on preventing antibiotic overuse.”
Mindray’s U.S. corporate headquarters is located in Mahwah, N.J.