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Mindray Makes Subtle Move Into Orthopedics

China’s international medical device leader Mindray Medical International Ltd. entered the rough-and-tumble Chinese orthopedics industry. The company accquired a controlling stake in Wuhan Dragonbio Surgical Implant Co. Ltd., a small China-based supplier of trauma, large joint and spine products. The purchase pits Mindray – which sells large durable medical equipment across the globe ( against larger China-based companies like China Kanghui Holdings, Shandong Weigao Group Medical Polymer Co. Ltd. and Trauson Medical Instrument Co. Ltd., as well as multinationals. Dragonbio is a bit player in the Chinese orthopedics market. But Mindray ( which is projected to report $1 billion in sales this year – likely won’t be content with that place on the pecking order.

With US and European orthopedics markets registering flat or even declining in annual sales, multinational players increasingly are looking to emerging markets, especially China, for their short-term future growth. At one time, established Western-based orthopedic players had firm holds on those markets but Chinese-based suppliers are mounting an effective challenge to grab a larger piece of their country’s orthopedic business.

Now, China’s largest medical device supplier Mindray Medical International Ltd. may be throwing its considerable weight into this fight....

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