Tue, Jan 21, 2014 - Page 13 News List

CHC Healthcare, Novadaq sign pact on imaging system sales in Taiwan, China

By Camaron Kao  /  Staff reporter

CHC Healthcare Group (承業醫), which distributes and leases medical equipment, yesterday secured the exclusive rights to sell Canada-based Novadaq Technologies Inc’s imaging systems in Taiwan and China.

The two companies signed a contract in Taipei, with both companies committing to a minimum annual purchase, but without specifying the amount.

CHC expects to start importing Novadaq products after receiving government approvals in Taiwan, likely by the end of June, and in China, in the next six to nine months, company deputy spokesperson Stephanie Kao (高淑芬) said by telephone.

Novadaq’s imaging systems are to be sold to hospitals at a price of about US$300,000 each, Kao said, adding that the equipment can help reduce post-operative complications and hospital costs during complex surgery.

CHC has high hopes for the medical systems, with Novadaq selling about 1,100 units in the US over the past two years, it said, while declining to set sales targets for either Taiwan or China.

The latest deal came after CHC’s subsidiary — Swissray Global Holding Lt Co (環瑞醫) — sealed an exclusive deal with Novadaq in November last year to distribute its imaging systems in Southeast Asia and Australia, Kao said.

Last year, CHC reported sales of NT$2.06 billion (US$68.44 million), up 3.55 percent from NT$1.99 billion a year ago, the company said in a filing to the Taiwan Stock Exchange.

The company expects its revenue this year to increase by 30 percent on the back of rising sales of diagnostic imaging and molecular systems licensed by GE Healthcare Taiwan in September last year. Sales of the system are expected to account for about 10 percent of the company’s revenue this year, Kao said.

In addition, sales of Elekta AB-licensed radiation oncology devices to China are projected to increase from one unit last year to seven to eight this year, the company said, adding that the device costs about US$3 million each.

From January through September last year, the company posted a net profit of NT$217.16 million, or NT$1.72 per share, down 19.3 percent from NT$269.09 million, or NT$2.52 per share, the previous year, the company said in a stock filing.

The company expects profit for the fourth quarter last year would reach NT$1.2 per share, up from NT$0.93 per share in the third quarter, as the company booked most of its revenue from repair and maintenance services last quarter.

CHC shares rose 0.82 percent to NT$73.70 yesterday, outperforming the TAIEX, which was up 0.3 percent.

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