Mindray expands into Chinese market through Dragonbio acquisition
Mindray has completed its acquisition of Wuhan Dragonbio Surgical Implant Co's Orthopaedics business. Mindray has agreed to acquire a controlling stake in Dragonbio specialist in trauma, spine, joint and other surgical products in June 2012. Under the agreement, Mindray paid approximately US$35.5 million, which was funded through its existing cash reserves.
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. 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 gains access to the fast-growing Chinese orthopaedic market and could potentially expand into additional international markets in the future.