Golden Meditech, one of China's major healthcare enterprises, has said that its medical devices business has successfully raised $40 million from a number of renowned private equity investors. The proceeds will fund the construction of new production lines for both medical devices and medical accessories to aid in the formation of joint-venture with Fenwal, Zurich.

Mr Kam Yuen, chairman and chief executive officer of Golden Meditech, said, “The successful fund raising will allow the company to better capture the brilliant prospects and abundant growth opportunities in the industry, amidst China's ongoing medical reform and expedite market penetration of our autologous blood recovery systems into mid-tier hospitals. In addition to enhancing the scalability of the Group's operation, the fund raising is also instrumental in reflecting the intrinsic value of our medical devices business.”

Mr Kam gave emphasis to the fact that the group saw the successful listing of two of it's affiliates, China Cord Blood and FunTalk China in the US, at the end of 2009. Based on their previous closing prices, the current combined market value of the Group's stakes in these two affiliates are close to $261 million.

“Going forward, we will continue to expand each of these operations while seeking to unlock the intrinsic value of each to enhance the return for the Group and its shareholders,” said Mr Kam.