China Medical (fka CMEDQ)

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News - China Medical Forms Strategic Partnership with Itochu's Subsidiary, Century Medical, to Develop HIFU Distribution in Japan


2006-12-05 07:30 ET - News Release


Company Website: http://www.chinameditech.com
BEIJING -- (Business Wire)

China Medical Technologies, Inc. (the “Company”) (Nasdaq: CMED), a leading China-based medical device company that develops, manufactures and markets high intensity focused ultrasound (“HIFU”) products and advanced in-vitro diagnostic systems, today announced that it has entered into an exclusive distribution agreement with Century Medical, Inc., a leading Japan-based medical device distributor wholly owned by Itochu Corporation (“Itochu”) (TSE: 8001), to distribute HIFU tumor therapy systems in Japan.

According to the terms of the agreement, China Medical’s HIFU tumor therapy systems will be exclusively marketed and distributed by Century Medical in Japan after the designated marketing authorization approval, or “shonin,” is obtained. Century Medical will work together with China Medical to obtain the shonin from the Japanese Ministry of Health, Labor and Welfare (the “MHLW”). China Medical intends to use the data from the clinical trials to be conducted in the U.S. to apply for the shonin and will bear all relevant costs.

Itochu is a major trading and investment conglomerate in Japan that was founded in 1858. Its wholly owned subsidiary, Century Medical, has over 30 years of experience in the distribution of advanced medical devices, including extensive experience in import licensing, importation, inventory support, sales and marketing, and customer service. Century Medical’s product offering includes surgical products, interventional peripheral and neuron-radiology, cardiology and cardiovascular devices.

"We are very pleased to appoint Century Medical as the exclusive distributor of our HIFU tumor therapy system in Japan upon obtaining the shonin," commented Mr. Xiaodong Wu, Chairman and CEO of China Medical. “We believe this partnership marks an important milestone for China Medical as it takes advantage of the strengths of both companies and sets a foundation to support the long term growth of our business by expanding into one of the world’s largest medical device markets. In addition, we will continue to explore other cooperation opportunities with Century Medical for medical device distribution in Japan.”

“The forming of our strategic partnership with China Medical is based on a series of detailed and thorough evaluations. We look forward to working closely with China Medical to pave the way for our execution of a comprehensive marketing and distribution plan for the HIFU tumor therapy system in Japan. We believe China Medical’s HIFU tumor therapy system will bring Japanese patients substantial benefits given its non-invasive characteristics,” stated Mr. Toshio Konishi, President and CEO of Century Medical.

About China Medical Technologies

China Medical Technologies is a leading China-based medical device company that develops, manufactures and markets products using high intensity focused ultrasound for the treatment of solid cancers and benign tumors and advanced in-vitro diagnostics products using enhanced chemiluminescence technology, to detect and monitor various diseases and disorders. For more information, please visit our website at www.chinameditech.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,”“expects,”“anticipates,”“future,”“intends,”“plans,”“believes,”“estimates” and similar statements. Among other things, the Company’s expectation to obtain the shonin approval and to sell its HIFU tumor therapy system in Japan through Century Medical contains forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in China Medical’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. China Medical does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Contacts:

China Medical Technologies, Inc.
Ms. Winnie Fan, (86) 10 6530 8833
[e-mail]
or
Christensen
Mr. Tip Fleming, (1) 917-412-3333
[e-mail]

Source: China Medical Technologies, Inc.