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According to Beijing Customs, the Inspection and Quarantine Bureau ofBeijing Customs raised questions regarding the propriety of the importationdocuments submitted by Inverness Medical Beijing, and subsequently seized allproducts imported at issue. Beijing Customs did not provide a clear timetableregarding when it will release these products. This news caused renewedconcerns in the Chinese market, as distributors and end-users worry that thedisruption in the supply of Triage products will adversely affect their use inhospitals. Currently, there is not much inventory left in the market, and itis estimated that the existing inventory can only last about a week. Somehospitals have already run out of Biosite products. Once a hospital runs outof Biosite products, it will be forced to use alternative products from othermanufacturers.
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In 2009, the total sales of Biosite products distributed through ChinmaxMedical Systems, Inc. reached US $20 million. In particular, the Triage BNPtest product is the best selling product in the heart failure diagnosticsmarket in China. The dispute with Chinmax and the customs seizure has openedthe door to Biosite's competitors, e.g. Roche, Abbott, Bayer/Siemens,BioMeuriex etc.
Biosite Incorporated is a worldwide pioneer in cardiac biomarkers based inSan Diego, California, USA. Biosite was acquired by Inverness MedicalInnovations, Inc. (NYSE: IMA) in June 2007. Chinmax Medical Systems, Inc., aleading distributor of clinical diagnostics in China, has been distributingBiosite products since 1999. On January 28, 2010, Chinmax filed suit inShanghai regional district court against Inverness Medical Beijing (IMB), theChinese subsidiary of Inverness Medical Innovations, claiming IMB infringed onChinmax's exclusive distribution rights in China.
SOURCE Chinmax Medical Systems, Inc.
