Medtronic, an American medical devices maker has bought 15 percent stake in Chinese company Shandong Weigao Group Medical Polymer Company. With this buy, Medtronic will start a joint venture to market therapies in the spine and orthopedics sector.
The joint venture will market in China Medtronic's spinal products and Weigao's orthopedic products that include therapies for the hip, shoulder, spine and trauma. Under the joint venture agreement, Medtronic will have a 51% interest in the joint venture and Weigao will have a 49% interest.
Medtronic has bought the Shandong Weigao stake for HK$1,726 million ($221 million).
"China is key to our global strategy as we continue to expand our geographic footprint," said Bill Hawkins, Medtronic president and CEO. "Weigao has a broad orthopedic and trauma product line that compliments Medtronic's offerings, but even more importantly, we feel we can generate synergies with their very strong presence and reputation in China. We view Weigao as an ideal strategic partner."
Chen Xue Li, chairman of Weigao said, "We take great pride in forming a strategic alliance with Medtronic, the world's leading medical technology company. The collaboration will further broaden our business and raise our R&D capability, leveraging our extensive customer network and quality production, paving the way for Weigao to be the leading medical device company in Asia. With our localized knowledge, we hope to play an important role in Medtronic's China strategy bringing Medtronic's products to benefit millions of patients in China."