Zacks_Analysts' Blog : China Medical Collaborates to Grow - Analyst Blog

China Medical Technologies, Inc. (CMED), a Chinese in-vitro diagnostic firm, recently revealed that its whole subsidiary – Beijing GP Medical Technologies Co. Ltd. ("GP Medical") has agreed to collaborate with Gaoxin Da An Healthcare Investment Ltd. ("Da An Health") and jointly market and promote molecular diagnostic know-how for clinical diagnostic applications in China.

The two partners will work to introduce novel molecular diagnostic products to serve Da An Health's hospital clients and leverage Da An Health's network of labs for validation of new products. The agreement includes provisions for expanding the scope of the agreement from molecular diagnostic products to the entire product lineup of GP Medical.

The Chairman and CEO of China Medical Technologies stated that the collaboration will lead to greater brand recognition and product awareness among a fresh clientele. In addition, the company could get a better idea of hospital demand, which would help in its product development program.

The CEO of Da An Health observed that Chinese molecular diagnostic business promises significant growth. By engaging in joint efforts, the combined entity will cater to a greater number of healthcare organizations in China.

Gaoxin Da An Healthcare Investment Ltd. is a China-based company, working on clinical diagnostic testing services and stand-alone lab service network. It has eight clinical test facilities catering to a large number of hospitals (Tier 1, Tier 2, Tier 3 and community hospitals). Da An Health has a fairly strong independent lab service network in China, providing diagnostic testing, healthcare screening and associated services.

China Medical Technologies, a leading in-vitro diagnostic company, based in China, utilizes molecular diagnostic know-how, such as Surface Plasmon Resonance, Fluorescent in situ Hybridization and an immuno-diagnostic know-how, to produce diagnostic products that are most useful for detecting cancers and other diseases.

China Medical Technologies dominates the market in China and all its sales generates there. China Medical Technologies competes with Abbott Laboratories (ABT) and Beckman Coulter Inc. (BEC), among others, in certain niches.