WESTBOROUGH, Mass., March 14, 2012 (GLOBE NEWSWIRE) -- Viking Systems, Inc. (OTCBB:VKNG), a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced that its distributor for China, Guangzhou Zhongjian Medical Technology Co, is establishing surgical training centers in China and has purchased four new Viking 3DHD Vision Systems for use in those training centers, The four new 3DHD Vision Systems are in addition to two other Viking 3DHD Vision Systems owned by the distributor.
Jed Kennedy, President and CEO of Viking Systems said, "We are very pleased our new Chinese distributor is making substantial investment in establishing surgical training centers in China to showcase the Viking technology." Kennedy went on to say, "It is important to begin exposing Chinese surgeons to the 3DHD Vision System in a clinical training setting. We believe this advanced exposure will shorten the initial sales cycle once the product receives Chinese government approval. We believe this approval will be received by year-end."
China has the world's largest population with an estimated 1.3 billion people. In 2009 the Chinese government committed to developing the country's healthcare system with a goal of universal healthcare access for all by 2020. Part of the commitment involves construction and renovation of 2000 county level hospitals and the funding of construction for 29,000 township hospitals. Recent reports have estimated annual growth in the Chinese medical device market to be at 12-13%. "All of these factors contribute to our strong belief in China as a future growth opportunity for Viking," said Kennedy.
There will be approval in China, and when this happens a substantial upside to $2 is very likely versus where we are currently at now. A marked increase of units sold in the U.S. will take us to $3 to $4 rather quickly. This particular unit is a cost saver for hospital budgets domestically. Dead money for now, but it will rise from the dead soon. :)
I hope you are right. I talked to Mathews late last year and the company still didn't know if clinical trials would be required in China. And that was over a year after the product was announced. He seemed absolutely clueless on how to do business in China.