Market surveys of China IVD market do not confirm CMEDs stated positions in the marketplace in China. Bio-Ekon was acquired for substantial sum but does not really have the product on the market. Is under development and not so competitive with what is out there already. Bio-Ekon is a basically good, small, young company and may turn into something but it is far from how CMED is painting it to the investment community. Real investigative analysts should check into who are the customers of CMED. Perhaps, if they are really generating the revenue they report, the products are going into a warehouse somewhere in China. They are certainly not seen on the street.
China Medical Technologies, Inc. announced that the Company has entered into a definitive agreement to sell its High Intensity Focused Ultrasound tumor therapy system business (HIFU Business) to Chengxuan International Ltd. (Chengxuan), its major shareholder for $53.5 million in cash. Chengxuan will make a payment to the Company upon the closing of the sale and two other payments during the year after the closing. Chengxuan is owned by Mr. Xiaodong Wu, the Chairman and Chief Executive Officer of the Company. The transaction is expected to close before the end of December 2008