(Yicai Global) Oct. 27 -- Chinese sensor maker Sinocare intends to invest KRW9.2 billion (USD7.9 million) in South Korean insulin pump producer EoFlow and set up a joint venture in central China to explore a combination of blood glucose monitoring and medication for diabetics.

Sinocare will purchase a bit more than 175,300 newly issued common shares in EoFlow, resulting in a 1.5-percent stake in it, the Changsha-based buyer said in a statement yesterday.

The pair will jointly invest CNY45 million (USD7 million) to form a JV in Changsha. The Chinese partner will have a 60-percent stake in the venture and the Seongnam-based firm will have the remainder with a corresponding investment of CNY18 million.

The JV will try to integrate Sinocare's blood glucose monitoring system with an insulin pump developed by EoFlow to provide smart medical solutions for diabetics, according to the Chinese firm.

Sinocare will be entitled to exclusive intellectual property rights of manufacturing technologies related to the EoPatch insulin pump in China, paying the partner patent royalties.

The South Korean maker of small and waterproof insulin pumps will send experts to help the JV build and operate the plant, according to the statement. The wearables are controlled by a smartphone application and the product has been approved for sales in South Korea and Europe. 

Earlier this month, EoFlow began a clinical study in South Korea with the aim of expanding the user base of EoPatch to people with type 2 diabetes.

Sinocare's stock price [SHE: 300298] slid 0.9 percent to CNY23.76 (USD3.70) in the afternoon amid a broader decline in the mainland's stock indexes.

Editor: Emmi Laine, Xiao Yi