Medical equipment supplier Cowealth Medical Co (合富) said yesterday that it will invest US$5 million in a US-based company to acquire the exclusive rights to sell one of that company’s tumor treatment devices in Taiwan, Hong Kong and Macau.
However, Cowealth declined to identify the US company or elaborate on the prospective device because it wants to keep the information from competitors.
Cowealth said the US company’s capital is expected to rise to US$140 million after the investment, adding that it will have an approximately 3.57 percent stake in the company and one seat on its board.
Cowealth plans to sell the US$8 million device to local hospitals by August next year before rolling it out in Hong Kong and China, Cowealth CEO Lee Duane (李惇) said.
Cowealth also plans to start six joint ventures with Chinese companies next year.
From January through last month, the Taiwanese medical supplier reported profit of NT$254.53 million, up 34.67 percent from NT$189 million a year ago, while earnings per share (EPS) rose to NT$4.01 from NT$3.04 over the same period.
Revenue during the first nine months of this year totaled NT$1.99 billion, up 11.62 percent year-on-year, and Cowealth expects revenue this year to grow about 16 percent from last year, with EPS of NT$5.
Cowealth shares fell 0.23 percent to close at NT$87.3 yesterday.