Bluesail Medical Acquires Singapore-Based Cardiovascular Device Maker Biosensors International for Nearly RMB 6 Billion, Poised to Become China's Leading Listed Stent Company

VCBeat (WeChat ID: vcbeat) has learned, Recently, the leading enterprise in medical glovesBlue Sail Medical (002382)Announced at5.895 billion yuanAcquisition of Cardiac Stent ManufacturerBiosensors InternationalWith a 93.37% stake, it has made a decisive entry into the high-end medical device market and is poised to become the first publicly listed company specializing in coronary stents.

Previously, Blue Sail Medical issued an announcement on July 24, 2017, regarding the suspension of trading due to a major event, disclosing that it was planning a significant asset restructuring. After more than five months of trading suspension, Blue Sail Medical announced the resumption of trading on January 8, 2018. The stock hit the daily price limit at the opening, reflecting strong enthusiasm from the capital market for this transaction.

Prior to the trading suspension, Blue Sail Medical had a market capitalization of RMB 6 billion. Its main products included low-value consumables such as medical gloves. Although relatively unknown at the time of its IPO, the company has become a global leader in its niche sector within just a few years.Blue Sail Medical has become the world’s largest manufacturer of disposable PVC gloves, focusing primarily on the medical protection sector, with a global market share of 22% and significant pricing power for its products.

PVC gloves are also widely used in the food, electronics, and pharmaceutical industries. Blue Sail Medical boasts strong comprehensive competitive advantages, with an annual production capacity of medical-grade PVC gloves reaching 15 billion units.

In 2016, global demand for nitrile gloves reached 110 billion pieces per year, with production capacity concentrated in Southeast Asian countries such as Malaysia and Thailand. Blue Sail Medical actively invested in and developed nitrile glove projects. Its Phase I project, with an annual capacity of 2 billion pieces, commenced operations in June 2017. Nitrile glove sales volumes gradually increased from the second half of 2017 onward. The company expects to expand its nitrile glove production capacity by an additional 4 billion pieces per year in 2018, thereby launching a new engine for performance growth.

The target company of this transaction, Biosensors International, was established in 1990, is headquartered in Singapore, and was listed on the Singapore Exchange in 2005.Biosensors International is a world-leading enterprise in the research, development, manufacturing, and sales of coronary stents, ranking fourth globally, behind Abbott, Medtronic, and Boston Scientific.

The advanced nature of Biosensors International’s technology and the superiority of its products have gained recognition in many developed countries. Its products are sold to more than 90 countries and regions worldwide, accounting for an 11% share of the total market value in major markets such as Europe and the Asia-Pacific region (excluding Japan and China) in 2016.

BA9, a globally exclusive patented drug owned by Biosensors International, exhibits lipophilicity more than 10 times greater than that of drugs loaded on conventional stents. It effectively reduces the rate of restenosis after stent implantation while shortening the duration of post-procedural Dual Antiplatelet Therapy (DAPT) from the industry average of 12 months to just 1 month.

Upon the completion of this acquisition, Blue Sail Medical will not only enter the field of cardiac therapeutic devices but also leverage Biosensors International’s advantages in international markets such as the Netherlands, Switzerland, Brazil, India, and Singapore to further expand into European and American markets, thereby creating a new profit growth point for the company.

It is reported that Biosensors International wholly owns Shandong Jiwei Medical Products Co., Ltd. (hereinafter referred to as ““Jiwei Medical”). CurrentlyJiwei Medical holds approximately 18.5% of the market share in China, firmly ranking among the top three domestically. It is the only unlisted company among China’s top three stent brands, with the other two being MicroPort Scientific (0853.HK) and Lepu Medical (300003).

As Jiwei Medical’s sales revenue accounted for only about one-third of Biosensors International’s, upon completion of this acquisition, Blue Sail Medical will have nearly RMB 1.7 billion in sales revenue from the cardiac stent sector, ranking first in China in terms of stent business revenue.

Biosensors International reported revenue of RMB 1.281 billion and net profit attributable to parent company shareholders of RMB 244 million from January to October 2017.Biosensors International pledged to achieve net profit attributable to parent company shareholders, excluding non-recurring gains and losses, of no less than RMB 380 million, RMB 450 million, and RMB 540 million in 2018, 2020, and 2020, respectively.

In other words,Through this acquisition, Blue Sail Medical will derive more than two-thirds of its net profit from its cardiac stent business in the future, transforming from a low-value consumables company into a high-value consumables enterprise, and becoming the listed company with the largest sales revenue and net profit in the cardiac stent segment.