MR Montage Resources Corporation

Mindray Medical International Limited (MR), a leading Chinese medical device manufacturer, recently revealed a partnership with Epiphany Cardiography Products of Midlothian, Virginia. Per their collaboration, which is based in North America, Mindray’s 12-lead cardiac monitoring information will be intertwined with Epiphany’s user-friendly and web browser-based Cardio Server application. This application can accept, manage and transmit test results from more than 100 devices to Electronic Health Records (“EHR”).   

Epiphany, founded in 2004, manages with ease the gathering and handling of diagnostic test results. Its products are used by 330 hospitals globally.

The 12-lead cardiac monitoring data from Mindray encompasses continuous 12-lead arrhythmia analysis. It permits users to develop an image of the victim’s heart before they demonstrate ailments or as they recuperate. The Cardio Server allows users to obtain, manage and print out high-class 12-lead ECGs from any location where they possess a web browser. ECGs are also available from devices such as iPhone, iPad and Android.

According to Mindray, the open architecture of the Cardio Server from Epiphany gives its clients the head start they desire in access to information and integration of devices. Thus, interoperability is viewed as a critical element of success. The purpose of the partnership is to derive synergy from the enterprise-sized offerings of Cardio Server with modern monitoring know-how from Mindray.  

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.

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 General Electric (GE), Philips (PHG) and Siemens (SI). Our Neutral recommendation is supported by a short-term Zacks #3 Rank (Hold).

 
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