While the coronavirus pandemic wreaked havoc in certain business sectors including air travel, transport, shipping, and technology, there are also sectors that are thriving because of the crisis.
This is evident in the combined $7.3 billion worth of earnings the founders of a medical equipment manufacturing company have seen this year alone. Among them is Li Xinting, the founder of Shenzhen Mindray Bio-Medical Electronics Co. and currently the richest man in Singapore.
Fueled by Demand
As the stocks of larger corporations tank amidst the worldwide crisis, his company’s shares saw a 41% climb primarily thanks to the sudden increase in medical devices for patients struck with COVID-19
Xiting has benefited from this as he reportedly added some $3.7 billion to his personal wealth this year. His current net worth, according to Forbes’ real-time data, is $12.9 billion.
His current gains are even higher than Amazon CEO Jeff Bezos’ $3.4 billion. In comparison, another billionaire Bill Gates has lost a whopping $15.3 billion since the pandemic caused panic in financial markets around the world.
The novel coronavirus has infected around 3.78 million people and claimed the lives of 265,000.
Medical experts estimate that a whopping 960,000 patients would need to use a ventilator in the United States alone. In comparison, the country only has 200,000. The same shortage can be observed in other countries like Italy, where the coronavirus has killed over 29,000 people.
Mindray’s ventilators can spell life or death for many people suffering from COVID-19. Fortunately, the American board of food and drug has authorized the use of these life-saving equipment under an emergency rule. The company reportedly makes 3,000 ventilators in a month.
Nothing Lasts Forever
While Xiting and his company may be enjoying huge, unseen gains today, their success won’t last forever, especially considering the many other competitors in the same market.
There’s Beijing Aeonmed Co, which has also gotten authorization from the Food and Drug Administration (FDA). Another is Jiangsu Yuyue Medical Equipment & Supply Co., which saw massive increases in its market value.
Mindray’s biggest threat may be Medtronic Plc, a Chinese company based in Dublin that boasts of a $131.2 billion market cap compared to Mindray’s $44 billion.
In the end, there’s also the fact that the demand for ventilators would eventually die back down as the outbreak is contained and a vaccine finally made available.