SHENZHEN, China, Feb. 28, 2011 /PRNewswire-Asia-FirstCall/ -- Mindray Medical International Limited (NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today an agreement to acquire a controlling stake of Shenzhen Shenke Medical Instrument Technical Development Co. Ltd. The terms of the transaction were not disclosed as the transaction is non-material to Mindray's financial statements.
Founded in 2004 and based in Shenzhen, China, Shenke Medical is one of the leading infusion pump manufacturers in China. The company also manufactures syringes and infusion monitoring management systems. Infusion pumps are medical devices that deliver fluids, including nutrients and medications such as antibiotics, chemotherapy drugs, and pain relievers, into a patient's body in controlled amounts. It is widely used in ICUs, pediatric offices, emergency rooms and operating rooms. The syringe pump and infusion pump market in 2009 was estimated to be around $76 million in China with an annual growth rate of approximately 20%. The international market in 2009 was estimated to be around $1 billion with an annual growth rate of approximately 10%. About 100 employees from Shenke will be added to Mindray, and the combined company will have more than 6,900 employees in total. Shenke currently sells its products in China as well as international markets.
Mindray expects to achieve synergies in the transaction by combining its strong engineering, manufacturing, sales and management platforms with Shenke's brand name, technology and expertise in the infusion pump area. "We are excited about this transaction and believe that our collaboration will benefit both Mindray and Shenke," said Mr. Minghe Cheng, Mindray's Chief Strategic Officer. "We expect Shenke's infusion pump products to complement Mindray's patient monitoring and life support product line in providing total solutions to our customers. Together, the companies will be able to tailor their product functionalities better in order to meet end-user requirements."
Mr. Qun Gu, General Manager of Shenke, will maintain his position. The other management team is expected to stay without significant changes along with the rest of the staff.
Regarding the transaction, Mr. Qun Gu said, "The addition of our business to Mindray's patient monitoring and life support product line will allow us to better serve the customers and give us a stronger position to compete in the market place. We expect that Shenke will continue to provide high quality products and services to our customers and we look forward to build a stronger platform as we become a member of Mindray's global operations."
Mindray will discuss the transaction on the company's fourth quarter and full year 2010 earnings conference call, scheduled at 8:00 AM on March 1, 2011 U.S. Eastern Time (9:00 PM on March 1, 2011 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as follows:Hong Kong:
+852-3002-1672U.S. Toll Free:
+1-857-350-1676Passcode for all regions:
MindrayA replay of the conference call may be accessed by phone at the following numbers until March 15, 2011.U.S. Toll Free:
6529 4305Additionally, a live and archived webcast of this conference call will be available on the Investor Relations section of Mindray's website at http://www.mindray.com.
About MindrayWe are a leading developer, manufacturer and marketer of medical devices worldwide. We maintain global headquarters in Shenzhen, China, U.S. headquarters in Mahwah, New Jersey and multiple sales offices in major international markets. From our main manufacturing and engineering base in China and through our worldwide distribution network, we are able to supply internationally a broad range of products across three primary business segments, comprised of patient monitoring and life support products, in-vitro diagnostic products and medical imaging systems. For more information, please visit http://ir.mindray.com.
Cautionary Note Regarding Forward Looking StatementsThis press release contains "forward-looking statements". These statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. It is possible that our actual results achieved may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to: our ability to close the agreed upon transaction; the size and expected growth of the infusion pump market in China and internationally; our ability to achieve synergies in the transaction; our ability to develop new products to meet end-user requirements; and our ability to retain and successfully integrate into Mindray the Shenke employees and management team post-closing. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our public filings with the Securities and Exchange Commission. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 7 of our annual report on Form 20-F, filed on May 7, 2010. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information. Such information speaks only as of the date of this release.
For investor inquiries please contact:In the U.S:Hoki LukWestern Bridge, LLCTel: +1-646-808-9150Email: email@example.comIn China: May LiMindray Medical International LimitedTel: + 86 755 2658 2518Email: firstname.lastname@example.org
|SOURCE Mindray Medical International Limited|
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