Chindex International and Shanghai Fosun Pharmaceutical (Fosun Pharma), a manufacturer and distributor of western and Chinese medicine and devices in China, has formed the joint venture to independently operate certain combined medical device businesses, including Chindex's Medical Products division.
The formation of the joint venture represents a basis of the strategic alliance between the two companies, which aims to capitalize on the long-term opportunity presented by medical product sectors in China.
The joint venture entity, Chindex Medical, a Hong Kong entity, will focus on marketing, distributing, selling and servicing medical devices in China, including in Hong Kong, as well as activities in R&D and manufacturing of medical devices for the Chinese and export markets.
The Joint Venture is owned 51% by Fosun Pharma and 49% by Chindex.
The Joint Venture owns the Chindex-contributed businesses (principally the Medical Products division) and is entitled to a pending and obligatory final investiture of the Fosun Pharma-contributed businesses.
Chindex president and CEO Roberta Lipson said that they had explored various strategic options for our Medical Products division and believe that the Joint Venture with Fosun Pharma represents a superlative opportunity with a formidable partner and great upside potential.
"We believe that this integration of complementary businesses offers synergies, economies of scale and presence in China not available to either of the combined businesses on a stand-alone basis," Lipson said.
As the successor to Chindex’s Medical Products division, the Joint Venture will be the distribution partner for the sale and servicing of color ultrasound systems, mammography, aesthetic lasers and surgical robotic systems for Siemens AG, Hologic, Candela, Cutera and Intuitive Surgical respectively.