Mindray Discloses New Products
Mindray Medical International Limited (NYSE:MR), a leading Chinese medical device manufacturer, recently provided an update on its new product launches during 2011 and its pipeline for both the Chinese and overseas markets for 2012.
During the past year, Mindray launched 7 new products, such as A5 and A3 anesthesia machines and the BeneHeart D3 defibrillator, in its patient monitoring and life support line of business.
The company commercialized the BC-6800 five-part hematology analyzer and some reagents for its in-vitro diagnostic product line. It launched 5 offerings, including the DC-8 color ultrasound system, in its medical imaging product line.
Mindray plans to launch 7 to 10 new products for 2012. The company will maintain a balance between the high-end and low-end market segments. During 2012, Mindray has decided to grow its product offerings in patient monitoring and life support areas, such as anesthesia delivery and complete IT solutions for ICUs. The company also has plans for growth in in-vitro diagnostics as well as medical imaging.
Mindray is a bellwether in the Chinese MedTech industry with a solid international presence. A key distinction with domestic competitors is that the majority of Mindray’s products have CE Mark and/or Food and Drug Administration (“FDA”) clearance.
The company has entered the premium segment globally, where its competitive advantage is still unclear. Also, on the negative side, health care reform, in China and the U.S., may reduce demand for Mindray’s products. Competition is fierce and leads to price erosion over time.
Mindray’s competitors, in different niche segments, include General Electric (NYSE:GE), Philips (NYSE:PHG) and Siemens (NYSE:SI). Our Neutral recommendation on Mindray is supported by a short-term Zacks #3 Rank (Hold).