Mindray Acquires Dragonbio Orthopedics Implant Line

Chinese device giant Mindray Medical (Shenzen, China), a leading developer, manufacturer, and marketer of medical devices worldwide, has announced the completion of its acquisition of the Wuhan Dragonbio Surgical Implant (Wuhan City, China) orthopedics business.

Wuhan Dragonbio Surgical Implant Company is a Chinese domestic medical orthopedic products provider founded in 2005 and based in Wuhan City (China). The company specializes in trauma, spine, joint, and other surgical products. Dragonbio sells medical orthopedic products solely in China and achieved total revenues of approximately USD 7.7 million in 2011.

Under the terms of the agreement, Mindray will pay a total purchase price of approximately USD 35.5 million, which will be funded through Mindray's existing cash reserves. The transaction is expected to be completed by the end of July 2012. Through the combined business benefits from the transaction, Mindray expects to gain access to the fast-growing Chinese orthopedic market and potentially expand into additional international markets in the future.

“The orthopedic consumable market has high barriers to entry, but this deal will give us instant access to this promising and sizable market,” said Minghe Cheng, chief strategic officer of Mindray Medical. “We expect to unlock the value of the acquired business through our strong capital position, large-scale operational experience, and worldwide presence.”

Based on Mindray's estimates, the global orthopedic market was valued at approximately USD 30 billion in 2011, with a compound annual growth rate (CAGR) of around 8%. According to Frost & Sullivan (Mountain View, CA, USA), an international research and consulting firm, the market size in China was approximately USD 1.1 billion in 2010 and is rapidly growing with a projected CAGR of over 18% from 2010 to 2015.

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