CardioDynamics licenses patient monitoring technology to China's Mindray
San Diego. CardioDynamics (NASDAQ:CDIC), has entered into an original
equipment manufacturer (OEM) agreement with Shenzhen Mindray Bio-medical
Electronics Co, Ltd. (Mindray), the largest manufacturer of patient
monitoring products in China. Under the terms of the agreement, Mindray will
integrate CardioDynamics BioZ ICG technology into its patient monitoring
products, and CardioDynamics will receive a licensing fee for each BioZ ICG
OEM kit purchased by Mindray.
Michael K. Perry, Chief Executive Officer of CardioDynamics, said "China
has been our most successful international market. This OEM agreement with
China's largest patient monitoring company is important to our international
growth initiatives. Through our OEM strategy, we are increasing global
access to our BioZ ICG technology and increasing the recurring revenue
content of our business."
The Company's market development strategy for BioZ ICG is designed to
optimize success in both the physician office and hospital markets. To date,
the United States strategy has been principally focused in the physician
office market, which at this stage in market acceptance is optimally served
by a direct sales force. Internationally, the Company's primary market has
been in the hospital, where OEM integration agreements and hospital
specialty distributors are integral to success.
Perry added, "Our agreement with Mindray is a continuation of our
partnership strategy with industry leaders, including GE Healthcare and
Philips Medical Systems and is key to driving continued market adoption of
our proprietary BioZ ICG technology. We will remain selective in identifying
collaboration opportunities that make near-term and long-term contributions
to growing earnings and shareholder value."
China, whose population exceeds 1.3 billion people, has significantly
increased its healthcare expenditures over the past decade. Furthermore,
China is predicted to invest over $4 trillion in healthcare from 2005
through 2008, approximately 13% to 15% of China's projected GDP. China has
been listed by the World Health Organization (WHO) among countries with a
rapidly increasing incidence of cardiovascular disease. Deaths from
cardiovascular disease constituted 40% of the total deaths in China in
recent years, higher than in both Japan and the United States.