A Medical Device Daily

WuXi PharmaTech (Shanghai, China), a medical device/biotechnology/pharmaceutical R&D outsourcing company with operations in China and the U.S., said that Warburg Pincus (New York), the global private equity firm, has acquired 5.4% of its outstanding ordinary shares from affiliates of United Overseas Bank.

At the closing of the transaction on July 2, affiliates of United Overseas Bank, one of the early venture investors in WuXi PharmaTech, sold to Warburg Pincus a total of 26.8 million ordinary shares, equivalent to 3.35 million American Depositary Shares.

"I am [pleased] that Warburg Pincus has decided to invest in WuXi. As a premier global private equity firm with tremendous experience in the life science industry, Warburg Pincus not only will strengthen our investor base, but more importantly we believe that it will provide strategic and business assistance to us," said Dr. Ge Li, chairman/CEO of WuXi.

"WuXi PharmaTech ... is a leader in the rapidly growing drug and medical device outsourcing industry. [It] has an impressive track record of growth and a distinguished reputation for customer service," said Stewart Hen, managing director of Warburg Pincus based in New York.

Dai Feng, a principal of Warburg Pincus based in China, added, "With our global expertise in healthcare and our deep understanding of the offshore operating environment, we hope to assist WuXi in achieving its strategic and financial goals."

WuXi said its services are designed to assist its global partners in shortening the cycle and lowering the cost of drug and medical device R&D.

Chindex signs Chinese CDC contracts

In more China-related news, Chindex International (Bethesda, Maryland), a provider of international healthcare services and Western healthcare products in China, said it has signed two contracts for the supply of 110.8 million of laboratory and hospital products to the Centers for Disease Control in China's Gansu and Inner Mongolia provinces.

The projects were awarded to Chindex's German subsidiary, Chindex China-Export GmbH, in late January, and the contracts were signed this week in a ceremony in Beijing.

Chindex CEO Roberta Lipson said, "We are privileged to have the opportunity to work with the various Chinese government entities represented here to undertake major upgrades to the Centers for Disease Control in Gansu and Inner Mongolia provinces. The execution of this program, made possible by the German government through its KfW Development Bank, is very complex and demands the kind of specific loan and contract execution expertise that Chindex has developed."

Signing on behalf of the Chinese buyer, Minmetals International Tendering Co., was General Manager Long Yu, who said, '"We have worked with Chindex to procure medical equipment on many prior projects, and are pleased to be cooperating with Chindex again on this important project to bring much-needed equipment to China's CDCs."

He added, "Chindex is a well-respected supplier and brings to this partnership more than 10 years of experience in executing government loan projects."

Shipments under these contracts are expected to begin before the end of the calendar year.

South African diabetes market growing

A new report from Frost & Sullivan (F&S; Cape Town, South Africa) says that increased access to healthcare is leading to rapid growth of South Africa's diabetes market.

According to the report, Strategic Analysis of the South African Diabetes Markets, many Type 2 diabetics are shifting toward the use of insulin along with their oral treatment. In 2006, 43% of Type 2 diabetics were using the more expensive insulin in addition to the oral treatment. "This trend is significantly boosting the revenues of the anti-diabetic pharmaceutical market," F&S said.

The report said the market earned revenues of $53.2 million in 2006 and estimates it to reach $82.7 million in 2012.

"The anti-diabetic pharmaceutical market in South Africa is firmly in the growth stage as a result not only of better access to healthcare, but also due to drastic changes in lifestyle," said Frost & Sullivan Research Analyst Lizelle Wentzel. "Hence, more South Africans are seeking treatment and are being diagnosed with the disease, boosting the prospects of anti-diabetic pharmaceutical manufacturers."

The market has grown considerably and has brought choice for patients between ethical and generic drugs. However, Type 2 diabetics, who are the majority of diabetes patients, are moving towards more expensive insulin treatment. This trend will underpin the sustainable growth and expansion of the market.

Japanese approval for Micrus coils

Micrus Endovascular (San Jose, California) reported receipt of Shonin approval from the Japanese Ministry of Health, Labor and Welfare (MHLW) to market its Cerecyte microcoil product line in that country.

The line includes the MicruSphere, Presidio, HeliPaq and UltiPaq Cerecyte embolic coils for the endovascular treatment of cerebral aneurysms.

Sales of the company's microcoils will be managed by Goodman Co. Ltd., Micrus Endovascular's exclusive distributor in the Japanese market.

"The approval of our Cerecyte line of microcoils represents a major opportunity for Micrus. We can now provide the Japanese neurointerventionalists with a full line of both platinum and Cerecyte coils for the treatment of cerebral aneurysms," said John Kilcoyne, chairman/CEO.

"Coming on the heels of our recently approved Cashmere and Ultipaq stretch-resistant coils, we believe that the approval of our Cerecyte coils will further enable us to build upon our growing market share in Japan — one of the fastest-growing markets for embolic coils in the world," he said.

OptiMedica's PASCAL debuts

OptiMedica (Hong Kong) reported the debut of its new PASCAL Slim Line Photocoagulator at the World Ophthalmology Congress in Hong Kong. The PASCAL method is a semi-automated pattern generation technique that allows the delivery of 532 nanometer laser pulses in a predetermined sequence.

Indicated for a variety of retinal diseases, including diabetic retinopathy, age-related macular degeneration and retinal vascular occlusive disease, the PASCAL Method enables physicians to dramatically improve their control of the precision, safety and efficiency of the photocoagulation procedure, while optimizing patient comfort and convenience.