China Medical Technologies, a Nasdaq listed China-based medical device company that develops, manufactures and markets advanced in-vitro diagnostic products and high intensity focused ultrasound tumor therapy system, has said that it is acquiring entire equity interest in Beijing Bio-Ekon Biotechnology for $28.8 million.
The Beijing based company said the acquisition is expected to close in January 2008. The company expects the acquisition to be accretive from the quarter ending March 31, 2008, resulting in increases in the company's revenues and adjusted non- GAAP net income. BBE's contribution will be fully reflected in the fiscal year ending March 31, 2009. This transaction is not subject to regulatory approvals.
Founded in 1999, BBE commenced business in selling Enzyme-Linked Immunosorbent Assay IVD products in China. In 2006, BBE launched its first semi-automatic ECLIA analyzer and related reagents upon receiving approval from the State Food and Drug Administration of China. Since then, sales of its ECLIA products have been growing rapidly.
BBE has sales offices in Beijing, Guangzhou, Wuhan, Qingdao and Chengdu to conduct direct sales and manage distributors in selling its products to over 800 hospitals in China. “BBE has strong research and development capability and has been selected for the 863 Program, the high-tech research and development program funded by the Ministry of Science and Technology, for developing ECLIA reagents for HIV and hepatitis C tests. BBE has already developed its first fully automatic ECLIA analyzer with processing capacity of 120 tests per hour. BBE plans to apply for SFDA registration in early 2008. Currently, BBE offers 18 ECLIA reagents and has over 40 reagents in the pipeline, some of which are expected to help expand the Company's reagent portfolio,” China Medical said in a release.
''The acquisition is in line with our strategy to expand in the advanced IVD segment and increase our ECLIA products' penetration in hospitals across China,'' stated Mr. Xiaodong Wu, Chairman and Chief Executive Officer of the Company. ''BBE has a solid customer base of over 800 hospitals and certain of its reagents and MAIA-based fully automatic ECLIA analyzer can expand our product portfolio and provide us with new business opportunities in the testing of parasitic infections and food safety. BBE's direct sales experience will also be beneficial to us in formulating our sales strategies.''