China Medical Receives Approval for Tumor Therapy System in Korea

China Medical Technologies (CMED) received approval to market its high intensity focused ultrasound [HIFU] tumor therapy system in Korea. The medical device was approved for the indications of liver cancer, pancreatic cancer and uterine fibroids.

In July 2007, the HIFU device was given the go-ahead to begin testing in the US. Similar devices have already been approved in the US to treat fibroids, but none has been given the nod to treat tumors. The China Medical HIFU machine is already on sale in China – for tumors and cancer.

China Med is represented by an exclusive distributor in Korea, who will target the large general hospitals in the country, which has more than 1,000 hospitals overall.

The news about the Korean approval sent China Medical shares higher once again. In mid-session, China Medical was trading $2.42 higher at $41.60, an increase of 6%. China Medical made its IPO on Nasdaq in mid-2005, offering shares at $15. In the last 52 weeks it has had a range from $21.65 to $44.68. At its present price, China Medical has a market capitalization of $1.1 billion. The company is headquartered in Beijing.

CMED 1-yr chart:

Disclosure: none.