Speculation reigns on Medtronic M&A targets in China

When a Medtronic ($MDT) executive revealed last week that the company is already considering a number of unnamed Chinese medical device companies as possible acquisition targets, it was the corporate equivalent of dropping a bomb and walking away. Such a move would up the ante for an industry increasingly targeting China and other emerging markets in Asia for new growth. But which firms are likely M&A targets?

MedCity News names some of the Chinese companies presumably under the Medtronic microscope. They include:

  • Shandong Weigao, a company already working with Medtronic in China. They formed a joint venture in which Medtronic has a 51% stake to sell spine and orthopedic products. Also noteworthy: Medtronic already invested $221 million in Shandong Weigao in 2007 and owns a 15% stake. Additionally, according to the story, Shandong Weigao has two other divisions outside of its Medtronic deal that sell lower-end device products, such as syringes, needles and infusion sets.

  • Shinva Medical. MedCity News cites a Morgan Stanley analysis that names this company as one to watch. Shinva¬†makes and sells everything from radiotherapy equipment to surgical instruments, orthopedic implants and IVDs. The company is also enjoying booming sales as China modernizes its health system.

  • China Resources Wadong Medical Equipment. The Beijing-based diagnostic company markets X-ray and MRI machines, plus diagnostic and treatment devices for the dental industry, the story notes.

  • Jiangsu Yuyue Medical Equipment. This promising Chinese company sells electronic blood pressure monitors, nebulizers and also diagnostic and imaging equipment, according to the article.

As China Daily and FierceMedicalDevices have previously told you, Medtronic appears to be the first multinational device company to publicly announce plans to pursue M&A in China and it will be interesting to see which competitor follows suit.

- read the MedCity News story

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