China Medical's Revenues Hurt by Reduced Test Pricing

Apr.29.10 | About: China Medical (CMEDQ)

China Medical Technologies (NSDQ: CMED) has received approval from the SFDA for its AUTOMAGLIA 90 fully-automated ECLIA analyzer. The machine is a fully-automated analyzer for immunoassay analysis in various types of diseases and disorders. China Medical is targeting its existing FISH customers, including 400 large hospitals in China who purchase significant numbers of FISH tests, for the new ECLIA machines.

China Medical said applications for the AUTOMAGLIA 90 include thyroid disorders, fertility and infertility disorders, diabetes, infectious diseases and tumor markers.

At the same time, China Medical revealed it has received approval for a Down Syndrome Screening test that will be bundled with its Prenatal FISH Probe. The test screens for trisomy 21, a chromosomal disorder caused by the presence of all or part of an extra 21st chromosome. The potential market for the Prenatal FISH Probe is estimated to be more than 16 million pregnant women per year.

China Medical has had to reduce the pricing of its ECLIA tests over the past 12 months, which has hurt the company’s financial performance. In its fiscal Q3 (ended December 31, 2009), China Medical said revenues were 24% lower than the year earlier at $25.2 million, resulting in a loss of $3.2 million.

China Medical began a $30 million share repurchase program on October 1, 2009. By the end of December, it had spent $5 million to purchase 390,000 ADSs.

Disclosure: none.