Mindray Medical to Acquire Controlling Stake in Hangzhou Optcla Medical Instrument
SHENZHEN, China, May 7, 2012 /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 Hangzhou Optcla Medical Instrument Co. Ltd. ("Optcla"). The terms of the agreement were not disclosed as the transaction is non-material to Mindray's financial statements.
Founded in 2000 and based in Hangzhou, China, Optcla is a domestic medical endoscope provider that specializes in rigid endoscopes and related surgical instruments and consumables. An endoscope is an instrument used to examine the interior of a hollow organ or cavity of the body. Compared to traditional open surgery, minimally invasive surgery using rigid endoscope is safer and quicker, resulting in less pain and shorter rehabilitation time for patients. In 2010, the market for endoscopes was estimated at approximately $240 million in China with a CAGR close to 15%. Internationally, the market was estimated at $2.6 billion in 2011 and is expected to grow at a CAGR of 5%.
"We are excited about this transaction and believe that our collaboration will benefit both Mindray and Optcla," said Mr. Minghe Cheng, Mindray's Chief Strategic Officer. "Under the agreement, Mindray will gain access to minimally invasive surgery devices and the related surgery consumable market. This acquisition will further supplement and extend Mindray's existing total operation room solutions to cater for the increasing demand for minimally invasive and digitized operations. We believe this transaction will bring new growth opportunities for our company."
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including without limitation, the projections of the annual growth rate of the rigid endoscopes market in China and internationally, any expected benefits of this transaction to Mindray, expected access to minimally invasive surgery devices and related surgery consumable market, complements and expansion of Mindray's existing total operation room solutions, expectations to cater for the increasing demand for minimally invasive and digitized operations as well as the anticipation of this transaction bringing new growth opportunities for Mindray, are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, without limitation, the expected growth of the medical device market in China and internationally; relevant government policies and regulations relating to the medical device industry; market acceptance of our products; our expectations regarding demand for our products; our ability to expand our production, our sales and distribution network and other aspects of our operations; our ability to stay abreast of market trends and technological advances; our ability to effectively protect our intellectual property rights and not infringe on the intellectual property rights of others; competition in the medical device industry in China and internationally; and general economic and business conditions in the countries in which we operate. 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 5 of our annual report on Form 20-F which was filed with the Securities and Exchange Commission on April 30, 2012. 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. 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.
We are a leading developer, manufacturer and marketer of medical devices worldwide. We maintain our 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, we supply through our worldwide distribution network a broad range of products across three primary business segments, namely patient monitoring and life support, in-vitro diagnostic, and medical imaging systems. For more information, please visit http://ir.mindray.com.
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