Mindray, which maintains its global base for product development, engineering and manufacturing in China, employs a vertically integrated operating model that enables the company to benefit from unique cost savings and efficiencies. Mindray recently strategically moved its New Jersey outsourced manufacturing capabilities to China in an effort to leverage low-cost technical expertise, labour and raw materials as well as gain a distinct competitive edge in international markets.
In 2008, Mindray acquired Datascope's patient monitoring business in the United States to become the world's third largest patient monitoring brand. This acquisition expanded Mindray's presence outside China as well as its existing worldwide distributor network through the addition of direct sales networks in the United States, the United Kingdom and France.
"The acquisition has also assisted Mindray in effectively understanding market trends, conditions and the changing needs of customers," says Frost & Sullivan Research Analyst Akanksha Joshi. "Mindray expects the acquisition to serve as a strong platform to support sustainable growth of its international business; Mindray has sold its products in more than 160 countries through 13 overseas offices."
The company has worked to form strong, long-term relationships with its suppliers to widen its global base and gain significant cost savings through volume. Generally, Mindray enters into annual contracts with suppliers, allowing for periodic price negotiations that help to reduce manufacturing costs and maintain strong profit margins.
Although the company actively looks to save costs, product quality is paramount to Mindray. This is evidenced by Mindray's independent quality control system, which is dedicated to quality control for the design, manufacture, assembly and testing of products. Mindray was one of the first companies to obtain Technischer Überwachungsverein (TÜV) International Organisation for Standardisation (ISO) 9001/13485 Certification, the Conformité Européenne (CE) mark, as well as Food and Drug Administration (FDA) approval. Mindray actively pursues the delivery of high quality in all aspects of its product portfolio.
"Mindray has three primary product business segments - patient monitoring and life support products, in-vitro diagnostic products, and medical imaging systems," notes Joshi. "Mindray's patient monitoring division offers over 40 different models that monitor patient vital signs in intensive care units, critical care units, operating rooms, emergency rooms and delivery rooms."
Mindray's product portfolio consists of 20 in-vitro diagnostic products and more than 110 reagents that are used in clinics and hospitals to detect various substances in patient samples such as blood, urine and other bodily fluids. The medical imaging systems segment is composed of more than 15 models that help produce real-time images of blood flow and anatomical movements using computer-managed sound waves.
Mindray's customer base primarily ranges from middle to low-end medical device markets. In China, Mindray has the largest customer support and service team with more than 1,000 sales and service staff that work closely with over 2,000 distributors. This network enables the company to provide domestic training, technical support and warranty as well as maintenance and repair services to both end users and distributors.
"Mindray's broad product line and diverse product offering help the company effectively compete against other international participants," observes Joshi. "Through its continuous efforts to improve manufacturing efficiencies and reduce raw material costs, Mindray has been successful in decreasing overall production costs and thereby, passing the cost savings onto its customers."
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About Mindray Medical International Limited
We are a leading developer, manufacturer and marketer of medical devices worldwide. We maintain our global operational headquarters in Shenzhen, China, and multiple sales offices in major domestic and international markets. From our main manufacturing and engineering base in China and through our worldwide distribution network, we supply internationally a broad range of products across three primary business segments, comprised of patient monitoring and life support products, in-vitro diagnostic products and medical imaging systems. For more information, please visit mindray.com/.
For investor and media inquiries please contact:
In the U.S:
John Capodanno, D
Bryan Armstrong, FD
T: +1-(312) 553-6707
Cathy Gao, Mindray Investor Relations
T: +86 755 2658 2518
About Frost & Sullivan
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