China Medical buys HPV detection system

NEW YORK - Medical device maker China Medical Technologies Inc. said Tuesday it bought the right to sell a human papillomavirus detection system from Molecular Diagnostic Technologies Ltd. for $345 million.

The Beijing-based company said it will pay for the HPV-DNA Biosensor Chip and Surface Plasmon Resonance based Analysis System over the next year. It expects to close the deal in December 2008 or January 2009, with the final payment to be made a year later.

The DNA chip is able to genetically identify 24 common strains of HPV, including strains that can cause cervical cancer and others that cause genital warts. The SPR system analyzes the data on the DNA chip, and is used in molecular diagnostics to identify proteins and ailments including infectious diseases, cancers and heart and immune system disorders.

China Medical Technologies said about 50 million HPV-related gynecological tests are done in China every year, and about 120 million women should receive cervical cancer tests. Assuming 30 percent of those women need HPV tests, it estimated revenue from the HPV-DNA Biosensor Chip could reach $700 million per year.

Shares of China Medical Technologies climbed $3.65, or 12.8 percent, to $32.22 in morning trading.

(Associated Press)

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