Inner Mongolia's Furui Medical Science Co., Ltd said it expects to raise EUR 82.54 million ($87 million) as it brings in new investors for its French unit, Echosens though an equity transfer, capital increase and share enlargement.
Furui Medical, which focuses in the diagnosis and treatment of liver fibrosis, said Cathay Capital Sino French (Midcap) Fund, OrbiMed Advisors and Luxemburg Sunshine International are investing in the French unit. The proposed investment has been approved the by company’s board of directors.
As part of the agreement, the Furui’s Luxembourg unit will transfer its shares in Echosens to the three investors. Cathay Capital is investing EUR 40 million, while OrbiMed is paying EUR 18 million, and Luxemburg, EUR 24.54 million. Following the capital increase, Echosens will become a company with diversified shareholders. Furui will hold a 51% stake in the company.
Echosens, which has a pre-investment valuation of EUR 140 million, specializes in non-invasive diagnostic products for hepatology such as FibroScan. Furui acquired Echosens in 2011, helping the unit post year-on-year sales increase of up to 40% since.
Of the amount, about EUR 30 million will be used for Echosens’ acquisition of state-of-the-art medical technologies and to boost research and development activities in the field of liver diseases. The remaining EUR 52.54 million will be used for Furui’s O2O health management services for chronic liver diseases and other related medical services.
“Echosens’ alliance with the three strategic investors will help improve its corporate governance structure, enhance investment and management experience and risk management capabilities,” says Wang Guanyi, chairman of Furui.
