#Record My 2024#In the capital market, Mindray Medical can be described as a well-known giant, just recently Mindray Medical spent 6.65 billion yuan to acquire control of Huitai Medical, which caused a heated discussion in the market, what does Mindray Medical want to do when it enters the cardiovascular track?
1. Mindray Medical's 6.6 billion acquisition of control of Huitai Medical?
According to a report by Jiemian News, Mindray Medical, a leading domestic medical device company, announced that it intends to use 6.65 billion yuan of its own funds to realize the acquisition of control of Huitai Medical, a medical device company listed on the Science and Technology Innovation Board, through the method of "agreement transfer + voting rights", and quickly lay out the subdivision track in the cardiovascular field.
According to the acquisition plan, the actual controller of Huitai Medical and other relevant entities intend to transfer 14.12 million shares of Huitai Medical held by it to Shenmaikong, a subsidiary of Mindray Medical, through agreement transfer, accounting for 21.12% of the company's total share capital. At the same time, Cheng Zhenghui, the controlling shareholder and actual controller of Huitai Medical, will also give up the voting rights of the 10% shares he still holds.
For a long time, the medical device field has shown the industry characteristics of a strong and a strong company, coupled with the large number of subdivided tracks and the limited technology and channel synergy between the tracks, after the development of enterprises in the industry has entered a certain stage, they need to rely on epitaxial mergers and acquisitions to cultivate new growth points and continue to expand business boundaries, which is also true for Mindray Medical, the industry leader.
According to the data of the industry research report, the global market size of the cardiovascular field has reached 56 billion US dollars, and the market size of China has also exceeded 50 billion yuan, ranking second in both the global and domestic medical device market sizes, second only to the field of in vitro diagnostics. In the context of the aging of the population, the market growth rate of the cardiovascular field is significantly higher than that of other fields.
According to public information, Huitai Medical, as the target of the acquisition, has focused on the cardiovascular track for many years, and has achieved a solid position in the domestic cardiovascular market monopolized by foreign brands, such as cardiac electrophysiology, coronary access, and peripheral vascular intervention.
2. What does Mindray want to do when it enters the cardiovascular track?
Mindray's RMB6.6 billion acquisition of control of Huitai Medical marks a major adjustment and deepening of the strategic layout of this leading company in the medical device industry.
First of all, in the field of medical devices, the Matthew effect of the strong Hengqiang is particularly significant. The industry has high barriers, is technology-intensive and has a large R&D investment, and at the same time has a high dependence on sales channels and brand reputation. In the absence of mature technology and market networks, it is often difficult for new entrants to quickly open up the situation. Through the acquisition of companies that already have market share and technological advantages, Mindray Medical was able to quickly gain core competitiveness in the cardiovascular field, and with the help of Huitai Medical's existing market position and customer resources, it was able to achieve "corner overtaking", avoiding the long process of accumulating experience and market from scratch.
Secondly, as a subdivision leader in the cardiovascular track, Huitai Medical has been deeply engaged in many high-tech fields for many years, accumulated rich product lines and professional and technical capabilities, and formed a stable profit model and sustainable growth potential. For Mindray, choosing such a high-quality target for M&A can not only obtain a ready-made technical team and product matrix, but also integrate the R&D capabilities of both parties to accelerate technological innovation and iterative upgrading in the field of cardiovascular medical devices.
Third, after years of rapid development, Mindray Medical has become an inevitable strategic choice in the face of increasingly fierce market competition and changing market demand. Especially with the aging of the population in China and even the world, the number of patients with cardiovascular diseases is on the rise, which makes the cardiovascular device market show huge room for development. Compared with Mindray's original equipment track, the cardiovascular consumables track has higher growth and market penetration, and through this acquisition, Mindray Medical can broaden its product line and service range, realize business complementarity and expansion, and enhance its ability to resist risks in a single market.
Fourth, in the long run, there are natural synergies between Mindray Medical and Huitai Medical at the business level. Mindray's strong equipment manufacturing foundation combined with Huitai's rich consumables R&D and production advantages will form an integrated solution of "equipment + consumables", which will not only help improve the quality and stickiness of customer service, but also help create a more comprehensive treatment plan for cardiovascular diseases. In addition, the cooperation between the two companies in supply chain management and sales channel sharing will also bring the possibility of improving operational efficiency and cost optimization.
Therefore, Mindray's acquisition of Huitai Medical is a strategic merger and acquisition, which can not only help Mindray quickly enter the cardiovascular field, but also enhance the company's comprehensive competitiveness through resource integration and product line expansion, which will undoubtedly enhance Mindray's imagination.