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The footprint of overseas M&A

Time: 2022-12-05 Hits: 47

It's been undoubtedly a good dream for Li Shaobo to acquire Company B. He joked it was a dream-like those sweet ones Wei Xiaobao (the hero of the martial arts fiction The Deer and the Cauldron by Jin Yong) always has. But it was this failed acquisition that made Li Shaobo notice a huge gap between Sinocare Inc. and international companies, and made Sinocare Inc. realize the pressing need for change.

To roll out its global glucometer expert dream, Sinocare Inc. has been planning overseas mergers and acquisitions since 2014, hoping to change the industry structure and step into top glucometer manufacturers. Two acquisitions failed and Sinocare Inc. has to determine to change the situation and escalate reforms.

In 2016, the reformed Sinocare Inc. made another move and acquired two U.S. companies.6-1-1670236788(1)

Sinocare Inc. merges U.S. Trividia and turns into a world leading glucometer manufacturer

On January 8, 2016 (Changsha, China), Sinocare Inc. (Shenzhen Stock Exchange: 300298) announced that it has completed the acquisition of Trividia Health Inc., previously known as Nipro Diagnostics Inc, for which Mr. Scott Verner has been appointed as the CEO and President while the core management remains in service. The renewed company will continue to develop businesses in the United States.

"Just like Sinocare Inc., Trividia Health Inc. has a long-term vision to become a leading provider in the global health and healthcare industry, and is committed to providing patients with innovative and high-quality solutions for a healthier life," said Mr. Li Shaobo. "We have great respect for the accomplishments of the management team and employees at Trividia Health Inc. and confidence in their ability to deliver on our shared vision. We will strive to provide a proven portfolio of products and services, set a shared future direction of development, and have faith in our product and service design, production, and sales personnel, which is critical to the achievement of our common goals."

"The company sees robust growth momentum due to our launch of new products and investments in cutting-edge manufacturing and distribution facilities in the United States. This deal combines the fastest-growing blood glucose monitoring companies in China and the U.S. We share the vision and goal to provide innovative, affordable solutions for people with diabetes to lead healthier lives. It is an exciting new page for the merged company and I’m very proud of leading the company to go through so many changes in the public and private markets. I look forward to expanding our potential in the global market and to providing total solutions for patients, healthcare providers, and our customers," said Mr. Scott Verner.

Trividia Health, the new name, indicates a new development route and represents our values, vision, and markets as an international company. Among them, "TRI" embodies Sinocare Inc.'s commitments to customers, employees and shareholders; "VI" means a dedication to helping patients overcome diabetes and other health challenges, and "DIA" refers to the general diabetes-cored business; the HEALTH indicates that new business will focus on developing other holistic health solutions in addition to diabetes.

As one of Sinocare Inc.’s subsidiaries, Trividia Health Inc., is a global health and healthcare company based in Fort Lauderdale, Florida, USA, and a leading developer, manufacturer, and marketer of high-performance products for diabetics. With a line of "TRUE" products, the company serves as the exclusive partner and supplier to many leading retail pharmacies, distributors, and mail-order service providers, providing them with affordable, high-quality blood glucose monitoring systems and health and wellness solutions.

The deal is closed at $272.5 million, making it one of the largest overseas acquisitions by Chinese medical device players and the largest overseas M&A of the medical device industry in Hunan province these years. As a result, Sinocare Inc. has become the top 6 glucometer manufacturer in the world.6-2-1670236813(1)

Sinocare Inc. starts a new era of smart diabetes diagnosis and treatment after the acquisition of U.S. PTS

         On September 27, 2016, Sinocare Inc. concluded the delivery of the acquisition ofPTSDiagnosticsin Changsha, the capital of the central Hunan province. Sinocare Inc. has paid approximately $110 million in cash to acquire PTS Diagnostics and will make additional payments of up to $90 million based on its achievement of operating objectives over the next 18 months.

According to information, diabetes enjoys a prevalence of 11.6% among adults (aged 18 and above) in China while 50.1% for prediabetes, and the undiagnosed rate of type 2 diabetes for adults is as high as 70%. Among diabetic patients, only 25.8% take hypoglycemic drugs while only 39.7% of them had good control of blood sugar. These data tell a ruthless fact that we will develop into a great power of diabetes complications from the one with prevailing diabetes if we don’t take effective measures. The only way to bring diabetes under control is to make a diagnosis and intervention as early as possible. For this reason, it is critical to make blood sugar monitoring to keep blood sugar at a proper level.

Since its establishment in 2002, Sinocare Inc. has been focusing on the research and development, production, and sales of glucometers, which are featured in precise, simple, and economic testing and have been quickly spread over the Chinese market as being available, affordable, and useful to the Chinese people. In this way, Sinocare Inc. has accomplished its mission of promoting and popularizing blood glucose meters in China, helping people with diabetes to make better health management of blood sugar. By the end of 2015, Sinocare Inc. had a share of 51% of glucometers in the retail market and become the leader of blood glucometers in China.

However, according to the Guidelines for the Prevention and Treatment of Type 2 Diabetes in China, blood pressure, blood lipids, glycosylated hemoglobin, and other indicators, not only blood sugar, shall be monitored for diabetics. In this regard, Sinocare Inc. has been working on a "hand laboratory", that is, monitoring blood glucose, blood uric acid, blood ketones, blood lipids, glycosylated hemoglobin, urine microalbumin, creatinine, etc. through blood droplets on the fingers to help diabetics for more comprehensive management.

PTS Diagnostics is an innovative, global provider of POCT diagnostic solutions and partners with patients and healthcare professionals by helping them make the right decisions and providing the test results they need. The Indianapolis-based company has established a wide marketing network for its products, covering 135 countries and regions around the world. For now, the product portfolio consists of CardioChek®bloodlipid analyzers, the A1CNow® test system, and the PTSDetect™ cotinine test system (which can test nicotine content). In addition, PTS is promoting the PTSConnect™ solution, which provides data connectivity and information management platform to help healthcare professionals improve their productivity and health management capability to bring better health for patients.

From this acquisition, Sinocare Inc. will integrate PTS products and improve thePersonal Palm Lab. Besides, they will also develop complementary advantages with PTS in research and development, production, supply chain, market, and other aspects.

Mr. LI Shaobo told the reporter, "PTS Diagnostics will bring over its leading cholesterol and glycosylated hemoglobin testing system to build a uniform market framework in China along with excellent blood glucose monitoring products from Sinocare Inc. andTrividia Health Inc. The three companies share a common vision and mission of improving our users’ quality of life. We share a goal to empower our customers to have the right information at the right time and to make the right judgment. We will continue to grow our business and seek moreopportunitiesof further developmentin the world. We will spare no efforts to providing more innovative and systematic solutions for the prevention and treatment of chronic diseases, enabling patients with diabetes, heart disease, and other chronic diseases to live healthier lives.”

"We are an innovator in the POCT market," said Robert Huffstodt, President and CEO of PTS Diagnostics. "The acquisition of PTS Diagnostics by Sinocare Inc. will boost our growth. Sinocare Inc. has created a conglomerate that has unique advantages in expanding its user base, driving and connecting more customers, and improving their health."

It is understood that through this acquisition, Sinocare Inc. will provide better multi-indicator monitoring of diabetes and create big data on the health of diabetics for real-time transmission to the cloud. In this way, doctors or health management institutions will learn the health conditions of diabetics in real-time and make cloud interventions to help them keep good health conditions and enjoy realintelligentmedical care.

"In the coming future, diabetics will test these indicators at home and their health manager will have access to their health data no matter where they are. As a result, through big data management, their health manager can predict their health development trend and make necessary interventions, thus helping them to embrace health and better life quality in smarter ways. By doing so, Sinocare Inc.'s dream of becoming a diabetes expert will come true." LI Shaobo concluded.