cmt-shells-out-345-million-for-new-technology

CMT shells out $345 million for new technology

The latest acquisition by China Medical Technologies comes with a price tag of more than five times its 2008 earnings, reflecting the Chinese firm's hunger for new technology to boost its prospects.
Beijing-headquartered medical equipment company, China Medical Technologies, has entered a $345 million agreement with Molecular Diagnostics Technologies to purchase its HPV-DNA biosensor chip and surface plasmon resonance analysis system.

The technology CMT is buying is used in the detection of human papillomavirus, which causes cervical cancer and sexually transmitted disorders. CMT is in the process of diversifying both the composition of its revenues and its product offering to secure its future revenues. And the technology acquisition continues a shift in focus from therapeutic products to diagnostic equipment. In vitro diagnostic equipment is expected to account for around 80% of total revenues in fiscal year 2009.

The deal comes a little under two months after...
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