Mindray Acquires IT Firm in China - Analyst Blog
14 Dicembre 2011 - 3:30PM
Zacks
Mindray Medical
International Limited (MR), a leading Chinese medical
device manufacturer, recently revealed an agreement to take a
majority stake in Zhejiang Greenlander Information Technology Co.,
Ltd. ("Greenlander"). The terms for the deal were not revealed. The
pact will not impact Mindray’s financial condition. Greenlander is
located in Hangshou, China.
Mindray aims to generate
significant synergies from the acquisition. Greenlander’s IT
service offerings will prove to be a boon for Mindray’s
pre-existing medical imaging technology.
Greenlander, launched in 2003, is a
vendor of healthcare IT offerings with a focus on Picture Archiving
and Communication System (“PACS”) and Radiology Information System
(“RIS”). RIS is an IT-driven data base utilized by radiology
practices to save and distribute patient-related radiological data.
The RIS know-how comprises outcome reporting, patient scheduling
and tracking and picture tracking abilities. It is a vital support
for the smooth work flow of radiology practices.
PACS, on the other hand, is a
medical imaging know-how that enables economical safekeeping and
easy access to images from different sources.
The RIS and PACS systems are
frequently utilized in the endoscopy, ultrasound, radiology and
pathology departments of hospitals as effective storage and
communication management offerings.
The RIS and PACS markets, in China,
were valued at about $142 million, in fiscal 2010, with a growth
rate of over 20% per annum, over the coming 3 years to 5 years. On
a global basis, this market is valued at approximately $3.46
billion with a growth rate of about 10% on an annual basis.
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 its 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).
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
Zacks Investment Research
Grafico Azioni Montage Resources (NYSE:MR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Montage Resources (NYSE:MR)
Storico
Da Lug 2023 a Lug 2024