News and Research on China Medical Technologies Inc. (CMED)
Business Description
China Medical Technologies, Inc., a medical device company, engages in the development, manufacture, and marketing of products using high intensity focused ultrasound (HIFU), for the treatment of solid cancers and benign tumors in China. In addition, the Company offers an integrated luminescence immunoassay IVD system using ECLIA technology to detect and monitor various diseases and disorders through laboratory evaluation and analysis of blood, urine or other body fluids.
The Company conducts its operations through its wholly owned subsidiary Beijing Yuande Bio-Medical Engineering Co., Ltd. (YDME Beijing). In January 2005, YDME Beijing established a wholly owned subsidiary Yuande (USA) Corp., which is principally engaged in assisting research and development projects and clinical studies on using the HIFU therapy system in the United States.
Products and Services
The HIFU therapy system
The Company offers its second-generation two-transducer HIFU therapy system. Its is testing a prototype of its third-generation product, a two-transducer HIFU therapy system equipped with its newly-developed ultrasound temperature measuring technology.
The Company’s primary product, the HIFU therapy system, is an ultrasound-guided ablation system that is used for the treatment of solid tumors. The Company’s proprietary designs enable its system to treat a range of tumors, and available in the market. Its HIFU therapy system is SFDA-approved to treat liver, breast and kidney tumors, solid tumors in the pelvic cavity or on bone and tumors in the four limbs or superficial tissues. The Company sells its HIFU therapy systems primarily to distributors and lesser extent to hospitals.
The Company’s HIFU therapy system consists of the following main components: Integrated transducers; Ultrasound imaging system; Patient treatment table and seat;
Control station; and Conduct structure.
ECLIA System
The Company’s second product is the ECLIA system, which is luminescence immunoassay IVD system based on the ECLIA technology. The Company’s ECLIA system consists of an ECLIA analyzer, reagent kits and a data analysis system. The ECLIA analyzer is an IVD device capable of detecting minute levels of light triggered by combining reagents with body fluid samples to produce diagnostic results. The key component of the Company’s ECLIA analyzer is the photon counter.
The Company offers 56 types of reagent kits for detecting and monitoring various types of diseases and disorders, including thyroid disorders, diabetes, hepatitis, disorders related to reproduction and growth, SARS and various types of tumors, as well as to assess the effect of digoxin, which is used for the treatment of heart failure. The Company develops reagents for other applications. The Company sells its ECLIA systems to distributors.
The clinical applications of the Company’s reagent kits include:
Thyroid disorders: The five assays comprise the basic tests hospitals perform to evaluate the functions of a patient’s thyroid gland;
Reproduction-related disorders: Five of the Company’s assays comprise the main tests performed by hospitals for evaluating the functions of the female reproductive organs, including the diagnosis of hormonal imbalance of postmenopausal women;
Diabetes: Two of the Company’s assays tests for insulin and C-Peptide level, two common indications of diabetes.
Tumors: The Company’s assays for tumor markers can detect the following types of tumors: Prostate, Lung, Breast, Liver, Stomach, Intestine, Colon, Pancreas, Kidney, and Ovary;
Growth: The Company’s assay is a test for the early diagnosis, identification and prognosis evaluation of problems relating to growth and development;
SARS: SARS is an atypical pneumonia of unknown etiology, and was recognized in China, Taiwan, Hong Kong, Singapore and certain other regions in the world;
Hepatitis B: The ten assays comprise the basic tests hospitals perform to test for hepatitis B;
Digoxin monitoring: The Company’s assay tests for the digoxin, which is used drug for treatment of heart failure;
Sterility: The Company’s assays test for the sterility caused by the mal-function of immune system; and
TOCHR: The Company’s assays test for the infection.
Significant Events
The company has entered into a collaboration agreement with the Biomed-X Center of Peking University (the Biomed-X Center or the Center) to establish a new research laboratory that would be used as a platform for the research and development of medical devices that complement China Medical's existing products.
Markets and Customers
The target market for the Company’s HIFU therapy system is large- and medium-sized hospitals in China with oncology departments. As of March 31, 2006, the Company sold approximately 200 units of its HIFU therapy system. The target market for the Company’s ECLIA system is small- and medium-sized hospitals in China. As of March 31, 2006, the Company sold approximately 1,400 ECLIA analyzers.
Suppliers
The ultrasound imaging system and the treatment bed, two of the components of the Company’s HIFU therapy system, are manufactured by GE and a local supplier, and Beijing Tianyuan Kehui, respectively. The Company sources the ultrasound imaging system from GE, which produces the ultrasound imaging system based on the Company’s specifications.
Competition
The Company’s faces competition for its HIFU therapy system from EDAP TMS S.A.; Focus Surgery, Inc.; and InSightec. In China, competitors for the Company’s HIFU therapy system include Chongqing Haifu Technology Co., Ltd.; and Shanghai A&S Science Technology Development Co., Ltd.
The Company’s ECLIA system competes with IVD systems and reagents offered in the China market by international companies, including Abbott Diagnostics, Bayer AG, Beckman Coulter, Diagnostic Products Corporation, PerkinElmer, Inc., Johnson & Johnson and Roche Group.
History
China Medical Technologies, Inc. was founded in 1999.
