Medical device firm China Medical Technologies of Beijing has completed the sale of its high-intensity focused ultrasound (HIFU) tumor therapy system business to its major shareholder and investment holding firm Chengxuan International for $53.3 million, the company announced.
Chengxuan International is owned by China Medical Technologies CEO Xiaodong Wu, who founded the HIFU business, according to China Medical Technologies.
The company announced the sale on December 18, explaining that the sale of the HIFU business was due to the conditions in the global financial markets, more stringent regulatory requirements on therapeutic equipment from China's State Food and Drug Administration, and the significant capital investments needed to obtain U.S. and European Union regulatory approvals for the HIFU equipment.
Conditions are unlikely to improve in 2009 because the HIFU business is more susceptible to the effects of the recent economic downturn due to the high price of the HIFU equipment, China Medical Technologies stated.
The company plans to focus resources on its advanced in vitro diagnostics operations.
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