Mindray Books Big Order - Analyst Blog

Leading Chinese medical devices maker Mindray Medical International Limited (MR) has sealed the biggest contract for its patient monitoring systems in Canada. According to the company and its Canadian partner and distributor Ultra-Portable Inc, installation of the patient monitors has already commenced at the Centre Hospitalier Universitaire de Quebec (“CHUQ”).

CHUQ is a network of three hospitals providing general and specialty care for patients throughout the metropolitan region of Quebec and Eastern Quebec. Mindray has stated that more than 90 monitors have been installed at the L'Hotel-Dieu de Quebec, one of the organization's three hospital sites. Canada is among the company's major target markets outside the U.S.

With its operational headquarters in Shenzhen, China, Mindray is a global Chinese medical devices company. It operates through three segments: Patient Monitoring and Life Support Products, In-Vitro Diagnostic Products and Medical Imaging Systems. Besides China, Mindray operates in North America, Europe and other Asian countries. The company's products hold a roughly 40% share of the Chinese healthcare market.

Mindray's patient monitoring systems, used in hospital intensive care units and operating/emergency rooms, track a patient's physiological parameters such as heart rate, blood pressure, respiration and temperature. Patient monitoring and life support products are the highest contributor to the company's revenues, accounting for roughly 44% of the annual sales.

Mindray has a strong position in the low and mid segments of the medical devices market in China and is poised to benefit from the solid fundamentals of the Chinese health care sector. Its new product development initiatives, expanding international footprint (and revenues) and solid sales infrastructure remain encouraging.

Although Mindray's strength is currently in the low and mid-end segments, the company is looking to carve a niche in the high-end markets. Moreover, Mindray is well positioned to benefit from the health care reforms in China. However, the company is exposed to intense competition-driven pricing pressure. Mindray faces strong competition from global devices manufacturers such as General Electric (GE), Philips (PHG) and Siemens (SI).

 
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