Zylox-Tonbridge Medical Technology Co., Ltd. (2190) has released additional information regarding its acquisition of 49% equity interests in a target company focused on medical technology development, manufacturing, and distribution. The target group has experienced losses partly due to significant research and development (R&D) expenditures, manufacturing facility expansions, and regulatory costs stemming from the transition from the Medical Device Directive to the Medical Devices Regulation in Europe. Reports indicate the target group has completed filings for about 70% of its products under the new regulatory regime and aims to finalize the remaining submissions by the end of 2027 with an estimated cost of EUR2.00 million.

Zylox-Tonbridge views these R&D and manufacturing investments as key indicators of the target’s growth potential and future prospects. In particular, the target’s advanced portfolio includes minimally invasive vascular and endourology products, with a recognized market presence in peripheral venous stenting. Its strong brand and product offerings are seen as strategically aligned with rising demand for minimally invasive therapies.

Following the acquisition, the target company is set to become Zylox-Tonbridge’s distribution platform for vascular products outside mainland China. Management anticipates that this move will enhance international market access and product reach, creating synergies by combining global sales networks, manufacturing resources, and established brand recognition. Despite recent losses chiefly attributed to heavy R&D and regulatory investments, Zylox-Tonbridge’s board considers these outlays vital for long-term development. The company has highlighted that a price adjustment mechanism is in place to reflect actual financial positions at closing, providing additional protection in light of the target’s historical losses.