Business, patient monitoring  

CardioDynamics licenses patient monitoring technology to China's Mindray

San Diego. CardioDynamics (NASDAQ:CDIC), has entered into an original equipment manufacturer (OEM) agreement with Shenzhen Mindray Bio-medical Electronics Co, Ltd. (Mindray), the largest manufacturer of patient monitoring products in China. Under the terms of the agreement, Mindray will integrate CardioDynamics BioZ ICG technology into its patient monitoring products, and CardioDynamics will receive a licensing fee for each BioZ ICG OEM kit purchased by Mindray.

Michael K. Perry, Chief Executive Officer of CardioDynamics, said "China has been our most successful international market. This OEM agreement with China's largest patient monitoring company is important to our international growth initiatives. Through our OEM strategy, we are increasing global access to our BioZ ICG technology and increasing the recurring revenue content of our business."

The Company's market development strategy for BioZ ICG is designed to optimize success in both the physician office and hospital markets. To date, the United States strategy has been principally focused in the physician office market, which at this stage in market acceptance is optimally served by a direct sales force. Internationally, the Company's primary market has been in the hospital, where OEM integration agreements and hospital specialty distributors are integral to success.

Perry added, "Our agreement with Mindray is a continuation of our partnership strategy with industry leaders, including GE Healthcare and Philips Medical Systems and is key to driving continued market adoption of our proprietary BioZ ICG technology. We will remain selective in identifying collaboration opportunities that make near-term and long-term contributions to growing earnings and shareholder value."

China, whose population exceeds 1.3 billion people, has significantly increased its healthcare expenditures over the past decade. Furthermore, China is predicted to invest over $4 trillion in healthcare from 2005 through 2008, approximately 13% to 15% of China's projected GDP. China has been listed by the World Health Organization (WHO) among countries with a rapidly increasing incidence of cardiovascular disease. Deaths from cardiovascular disease constituted 40% of the total deaths in China in recent years, higher than in both Japan and the United States.

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