30 Dec 2010 08:04

Lepu Medical enters pacemaker market with Qinming Medical acquisition

Shanghai. December 30. INTERFAX-CHINA - Lepu Medical Technology (Beijing) Co. Ltd. has agreed to purchase a 30.46 percent stake in Shaanxi Qinming Medical Equipment Co. Ltd. for RMB 48.1 million ($7.27 million) in a bid to enter China's cardiac pacemaker market, the company announced Dec. 28.

Qinming Medical will issue 26 million shares priced at RMB 1.85 ($0.28) per share to Lepu Medical, making Lepu the second largest shareholder. Shaanxi Qinming Electronic Group Co. Ltd. will remain the largest shareholder, but will see its stake diluted from 56.67 percent to 39.41 percent through the deal.

According to the announcement, Qinming Medical is the only domestic company that manufactures a proprietary cardiac pacemaker, which it launched earlier this year.

Qinming Medical registered operational revenue of RMB 89.74 million ($13.56 million) and net profit of RMB 10.24 million ($1.55 million) in the first three quarters this year. Revenue mainly came from the distribution of pacemakers and defibrillators made by Germany's Biotronik SE Co. KG, the announcement said.

Lepu Medical has been intensifying efforts to forge an integrated cardiovascular products company since its initial public offering (IPO) on the Shenzhen Growth Enterprise Market (GEM) in October last year. It acquired Beijing Star Medical Devices Co. Ltd. in November for RMB 150 million ($22.59 million) to move into the artificial heart valve market, Interfax previously reported.

- MS