SHENZHEN, China, Dec. 20, 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 Hunan Changsha Tiandiren Biotech Co., Ltd. ("TDR"). The terms of the agreement were not disclosed as the transaction is non-material to Mindray's financial statements.
Founded in 1997 and based in Hunan, China, TDR is a domestic manufacturer of microbiology analysis solutions that specialize in microbial identification and antibiotic susceptibility testing (ID/AST) and the blood culture system. Clinical laboratories use the ID/AST system to identify microbes and perform antibiotic susceptibility testing, while they use the blood culture system to recover pathological organisms. The rapid reporting of ID/AST test results and a continuous-monitoring blood culture system can result in better antibiotic management. Last year, the market for ID/AST and blood culture system was estimated at approximately $139 million in China. It is expected to grow 15-20% annually. Internationally, the market was estimated at $2.25 billion in 2010 and is expected to grow 5% annually.
Through this transaction, Mindray will be able to combine its strong platforms in sales, manufacturing, R&D, quality assurance and other resources with TDR's technology and expertise in the microbiology analysis business. TDR's strength in reagents is expected to complement Mindray's strength in analyzers.
"This transaction continues to show our commitment to expand the IVD product portfolio," said Mr. Minghe Cheng, Mindray's Chief Strategic Officer. "TDR's products will be a great addition to our existing IVD product line. Microbiology analysis is an important segment within IVD. It is an emerging yet promising category in China, based on favorable domestic policies to develop the overall industry as well as the government's specific focus on preventing antibiotic overuse."
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 microbial diagnostic market in China and internationally, any expected benefits of this transaction to either of Mindray or TDR, expected complements of TDR's business lines to Mindray's businesses, expansion of Mindray's product portfolio in microbiology analysis and expectations regarding governmental policies or development in China of the microbiology analysis market, 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. 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 4 of our annual report on Form 20-F. 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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