Mindray has agreed to acquire a controlling stake in Wuhan Dragonbio Surgical Implant Co, a medical orthopaedic products provider that specialises in trauma, spine, joint and other surgical products. Under the agreement, Mindray will pay approximately US$35.5 million, which will be funded through its existing cash reserves. The transaction is expected to be completed in July.
Founded in 2005 and based in Wuhan, China, Dragonbio sells medical orthopaedic products solely in China and achieved total revenues of approximately US$7.7 million in 2011. Orthopaedics is one of the largest medical device market segments worldwide. Based on Mindray's estimates, the global orthopaedic market was valued at approximately US$30 billion in 2011, with an annual growth rate of around 8 per cent.
Through the combined business benefits from the transaction, Mindray expects to gain access to the fast-growing Chinese orthopaedic market and potentially expand into additional international markets in the future.