BEIJING, March 29 On March 27, 2010, Chinmax MedicalSystems, Inc. held its 2010 Distributor Conference for Biosite products inShanghai, during which the company discussed its lawsuit against InvernessMedical Beijing Co. Ltd. ("IMB"), a subsidiary of Inverness MedicalInnovations, Inc. (NYSE: IMA). In its lawsuit, Chinmax alleges that Invernesshas illegally imported a large quantity of Biosite Triage products beginningin August 2009, and sold the products to Chinmax's agents and end users. Whenconfronted, IMB denied that it had engaged in any illegal importation. All therepresentatives present at the Distributor Conference expressed their supportfor Chinmax, and criticized Inverness Medical Beijing for its allegedviolations of business ethics. At the same time, the representatives indicatedthat they were worried about the outlook for the Biosite products. If thecurrent dispute does not end soon, they said, they will have to consideralternative products from other manufacturers.
The representatives also expressed concerns that the reputation of Biositeproducts and Inverness has been badly hurt in the Chinese medical market. Allthe hospitals using Biosite products in China have now become aware of thedispute involving the relevant products. Many hospitals criticized InvernessMedical Beijing's marketing behaviors, and indicated that if feasible, theywould consider replacing the relevant Triage products with those manufacturedby other competitors.
According the regulations of China's State Food and Drug Administration("SFDA"), Chinmax is the only government certified service agent for theBiosite products in China. Chinmax has been serving the Biosite products for10 years, and helped Biosite to grow its heart failure diagnostics marketshare in China from 0 to more than 80%.
Kevin Yue, General Manager of Chinmax said that, "For fairness's sake andfor our business reputation, we will pursue our infringement action againstInverness Medical Beijing to the very end."
Since 1999, Chinmax has been the exclusive distributor in China ofdiagnostics products manufactured by Biosite Incorporated, a world-leadingcardiac biomarkers company in San Diego, California, USA. Biosite was acquiredby Inverness Medical Innovations, Inc. (NYSE: IMA) in June 2007. InvernessMedical Beijing, a Chinese subsidiary of Inverness, said the company obtainedthe right to manage contracts between Biosite and Chinmax in December 2008.
SOURCE Chinmax Medical Systems, Inc.