(Yicai) Sept. 7 -- Sino Medical Sciences Technology, a Chinese manufacturer and distributor of medical devices, will buy a controlling stake in US peer eLum Technologies for USD20.7 million to replenish its product lines of instruments for coronary artery diseases and core technology reserves.

SinoMed will purchase a 72 percent stake in eLum from Decheng Capital Global Life Sciences Fund IV, the Tianjin-based company announced yesterday, citing an equity transfer agreement the parties inked.

Founded in 2015, eLum develops, produces, and sells neurointerventional devices. It has two major products under development, a distal embolic protection system and a pipeline shield, and owns multiple trademarks, patents, and know-how, SinoMed noted.

The acquisition will consolidate SinoMed’s leading position in the market of neurointerventional devices, hike its innovation, research, and development capabilities on related products, enrich its product lines, and enhance its core technology reserves, the firm added.

ELum has been in the red for three years. It posted a net loss of USD2.1 million and operating revenue of USD306,400 last year, according to SinoMed.

Shares of Sinomed [SHA: 688108] were trading unchanged at CNY9.28 (USD1.27) as of 10.55 a.m. today.

Editor: Futura Costaglione