Shanghai INT Medical aims for controlling stake in device firm

Shanghai INT Medical Instruments Co., Ltd. announced further details regarding its proposed acquisition of a controlling stake in a medical device company established in May 2016. The target company specializes in R&D, production, sales, and technical support of peripheral vascular interventional medical devices, holding eight NMPA registration certificates for self-developed, commercialized products.

As of October 31, 2024, the target company reported a net loss of RMB48,879,722.16 and net liabilities of RMB52,107,761.65. However, it achieved revenues of approximately RMB92.0 million (audited) in 2023 and RMB118.0 million (unaudited) in 2024, and is projected to turn a profit by June 30, 2025.

The estimated value of the target company's entire shareholder interest is RMB500.0 million, determined through negotiations and reference to comparable listed companies using a market approach, specifically the price-to-sales (P/S) method. A P/S ratio of 7.0x was applied, factoring in a 40.0% lack of marketability discount (LoMD). This acquisition is expected to significantly enrich Shanghai INT Medical's product offerings and capitalize on the target company's innovative products and strong patent portfolio, which includes over 300 patents.