Pharmaceutical manufacturing company Lifotronic's IPO application was accepted by the Shanghai Stock Exchange. It is reported that Lifotronic intends to issue no more than 43 million shares, and plans to raise 632 million yuan.
Pharmaceutical manufacturing company Lifotronic's IPO application was accepted by the Shanghai Stock Exchange. It is reported that Lifotronic intends to issue no more than 43 million shares, and plans to raise CNY 632 million. Lifotronic announced that the funds raised will be mainly used for rehabilitation treatment equipment and smart health care products construction projects.
According to the prospectus data, Lifotronic generated CNY 251 million and CNY 323 million from 2017 to 2018 respectively; net profit attributable to owners of the parent company was CNY 81 million in 2018. Among the revenue, in vitro diagnostic products accounted for the majority of the total revenue.
In recent years, Lifotronic has increased its investment in R&D, and established “Academician Workstation”, “Guangdong Engineering Technology Research Center”, “Shenzhen Engineering Technology Research Center”, “Shenzhen Engineering Laboratory”, “Enterprise Technology Center” and "R&D platform for Shenzhen Key Laboratory of Immunoassay and Liquid Chromatography In Vitro Diagnostics". According to public information, Lifotronic's research and development expenses in the past three years were CNY 39 million, CNY 5 million and CNY 67 million respectively, and the proportion of research and development expenses to operating income was 22.60%, 19.92% and 20.61% respectively. At present, Lifotronic develops 8 core technologies, possesses 67 patent technologies, 52 software copyrights and sells 69 medical devices.
The company's In Vitro Diagnostics R&D investment is part of a strategic plan. In 2024, in vitro diagnostics will be the biggest revenue generator for a med-tech company with around USD 80 billion worldwide sales volume. The annual growth rate will be around 6%, which means a sales revenue increase of around USD 25 billion.
"When I was at Mindray, the strategy was to follow what was called the international “GPS” - where GPS here stands for General Electric, Philips, and Siemens - follow their products and imitate their strategy. On the contrary, when I established Lifotronic, while I wanted to learn from the best practices of international companies like Medtronic and J&J, I was also committed to innovating and creating new products as a company." says the founder, Shine Liu Xiancheng.
Indeed Chinese med-tech companies are slowly catching up with their American and Japanese role-models.