GE HealthCare and Sinopharm to form joint venture in China
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GE HealthCare Technologies (NASDAQ:GEHC), the healthcare spinoff of General Electric (GE), announced a long-term joint venture with a subsidiary of Chinese healthcare giant Sinopharm (OTCPK:SHTDY) (OTCPK:SHTDF) on Friday.
Per the terms, GE HealthCare's (GEHC) Chinese subsidiary, GE Healthcare (China), and Sinopharm's (OTCPK:SHTDY) China National Medical Device Co., Ltd will collaborate in the JV to develop, manufacture, and commercialize medical equipment for China's healthcare market.
The JV will initially focus on providing "non-premium CT and general imaging ultrasound solutions for primary care and rural health," GE HealthCare (GEHC) said in a regulatory filing. The companies might decide to widen the product scope as the JV develops.
GE HealthCare (GEHC) and Sinopharm (OTCPK:SHTDY) have an ongoing partnership in China through the joint venture Hangwei, a medical equipment manufacturing company established in 1991.
The partnership for the new JV formation is subject to regulatory clearance in the People's Republic of China.
Since its public debut early this year, GE HealthCare (GEHC) has added ~36% in 2023, outperforming the broader market, as shown in this graph.
Seeking Alpha contributor, Daniel Jones argues that the company remains "significantly undervalued."