MicroPort Scientific Corporation (HK: 00853) and Sorin Group (MIL:SRN) (Reuters Code: SORN.MI), announced today that they have entered into a definitive agreement to form a joint venture to market and develop cardiac rhythm management (CRM) devices (implantable pacemakers, defibrillators, cardiac resynchronization devices and related devices) in China. MicroPort will hold a 51 percent stake in the joint venture entity, while Sorin will hold the remaining 49 percent interest. In accordance with the agreement, MicroPort and Sorin shall make initial capital contributions of, respectively, RMB62,220,000 (USD10.2 million) and of RMB59,780,000 (USD9.8 million) in cash in the joint-venture company.
The new venture, which will be named MicroPort Sorin CRM (Shanghai) Co. Ltd., will be located in Shanghai and is scheduled to start operations in the first half of 2014. Under the agreement, the two companies will collaborate, through the joint venture, on the import, sale and service of Sorin's CRM devices in Greater China and, in parallel, in accelerating the development of locally manufactured CRM products for the Chinese market. Significant engineering and development resources from both parties will transition to the joint venture immediately.
This new venture brings together two respected industry leaders, leveraging complementary strengths: MicroPort's unparalleled Chinese market coverage and strong national reputation and Sorin's 40 years' experience in the development and manufacture of high quality and innovative CRM devices. MicroPort and Sorin believe that the joint venture will be well positioned to quickly penetrate the growing CRM market in China. According to industry research, the Chinese CRM market, still underpenetrated, is estimated to be approximately USD500 million, growing approximately 10% per year in the next 5 years.