Boston Scientific (NYSE:BSX) said it took out a stake in Frankenman Medical, a Chinese medical device company, for an undisclosed amount.
Marlborough, Mass.-based Boston Scientific said its agreement with Frankenman calls for it to provide services and expertise in converting some of the 1 million open bile duct stone procedures annually performed in China to minimally invasive endoscopies.
Once the deal closes, expected during the 1st half of 2015, the companies will co-develop and manufacture products in China for the Chinese market, with some products commercialized jointly, Boston Scientific said.
Chinese private equity player Citic Capital Partners also owns a stake in Frankenman "and will continue to support the company’s growth in alignment with this strategic partnership," according to Boston Scientific.
Suzhou, China-based Frankenman serves more than 1,000 hospitals in the People’s Republic and employs more than 200 workers, according to a press release.
"We are excited to collaborate with Boston Scientific, a global medical technology leader, and ensure patients and physicians in China will have access to the minimally invasive solutions," founder & chairman Weng Zhiqiang said in prepared remarks. "The support from Boston Scientific will help Frankenman further accelerate its development and penetration of the market."
"Each year, more than 1 million bile duct stone removal procedures in China are performed as open surgeries. While less invasive endoscopic procedures can lead to better patient outcomes and reduced health care costs, access to these procedures is extremely limited," added Boston Scientific greater China vice president Warren Wang. "We are excited to cultivate this relationship and leverage Frankenman’s local market expertise in China, while simultaneously sharing our proficiency in the endoscopy market to deliver the improved patient outcomes and economic benefits of less invasive care."