The agreement calls for Lifetech to develop a line of pacemakers and leads using its manufacturing plant in Shenzhen, China, with Medtronic supplying "certain technology, training and support" to bring the devices to market in the People’s Republic, according to a press release.
Medtronic in January 2013 paid $66 million to bring its stake in Lifetech to roughly 26%. In 2012, the world’s largest pure-play medtech maker paid $816 million to acquire China Kanghui Holdings (NYSE:KH) and its portfolio of devices for trauma, spine and joint reconstruction.
Once the new Lifetech pacemakers are approved in China, "Medtronic will have the opportunity to partner with Lifetech on commercialization of the Lifetech portfolio of pacemakers and leads," according to the release.
"In the absence of a local viable solution to treat the many patients in need of this therapy, this new agreement provides an unprecedented opportunity to serve the local market with locally produced products while leveraging the quality and expertise of the global leader in medical devices, and simultaneously boosting China’s medtech capabilities," Lifetech Xie Yuehui said in prepared remarks.
"We are delighted to partner with Lifetech in this new venture to bring lifesaving technology to Chinese patients," added Medtronic chairman & CEO Omar Ishrak. "We expect these pacemakers to serve the local market and to meet the healthcare needs of significantly more Chinese patients."