Financial intelligence for Asia's healthcare markets
 
 
Remember me:

11/07/2018

“Our greatest concern is the impact from an escalation of the trade conflict into a vicious cycle of tit-for-tat measures between major economies,” said Chan Chun Sing, Singapore’s minister for trade and industry, in parliament earlier this week. He was absolutely right. Last night US president Donald Trump said that a 10% tariff on US$200 billion of Chinese products would be imposed as soon as September. It comes only a few days after both countries slapped US$34 billion tariffs on each other’s goods. “Trump reloads the tariff bazooka,” was how DBS Group described it in a note to clients this morning. Asian markets sold off from the open. The Shanghai Composite was down 1.9% while the Hang Seng gave up 1.6%. The Nikkei wasn’t far behind – it fell 1.4% – while the SGX and the ASX were off by 1% and 0.6%. If traders aren't already on holiday, expect them to head for the beaches now.
 
HealthInvestor Asia’s focus this week has been on Top Glove Corporation. The world’s largest rubber glove manufacturer has started proceedings against Adventa Capital and two directors for up to M$714.9 million (US$177 million) over what it calls “a conspiracy” to defraud Top Glove over its M$1.4 billion acquisition of Aspion in November last year. We have the details. Analysts have mostly cut their ratings and target prices. UOB Kay Hian maintains its “sell” with a lower target price of M$7.80; Raymond Choo, analyst at Kenanga, said: “We came back from Top Glove’s analysts briefing feeling less optimistic about the short-to-medium prospects in Aspion as irregularities discovered could prove a temporary setback with the profit guarantees at risk of not materialising”. He reiterates his “underperform” rating with a lower target price of M$8.20. DBS Research maintains its “fully valued” rating and target price of M$8.66, while PublicInvest Research analyst Chua Yi Jing is bearish. “Though the stock plunged 24.5% yesterday [Monday], we maintain our “trading sell” call as we think that the stock performance will remain weak given the uncertainties and downside risks of the legal issue i.e risk of impairment, long drawn litigation process and lawsuit fees,” she said. The target price was also cut to M$9.65. Even the reliably bullish Maybank Kim Eng downgrades the group to “hold” though it maintains its price target of M$12.90. On Monday, Top Glove shares crashed as much as 30% at one point and both prop trading and short selling had to be suspended. The stock traded more soberly yesterday, clawing back 7.8%, but today its shares were last seen down almost 3% at M$9.61. There has also been a knock-on effect for Adventa Capital-owed medical services company Adventa. It has been forced to abandon plans to raise M$80.2 million in an AmInvestment Bank-led complex rights issue.
 
Shares in China Isotope & Radiation, which manufactures diagnostic and therapeutic radiopharmaceuticals products, fell 6.9% on their debut on Friday. It priced its HK$1.7 billion (US$220 million) IPO on the Hong Kong Stock Exchange at HK$21.60 per share. It sold 80 million shares above the middle of the indicative range of HK$17.80 to HK$24.20 per share. This represents 25% of the share capital. Sole sponsor is CICC and joint global coordinator along with CLSA. They are also joint bookrunners with ABC International. Its shares remain under water and were last seen down 1.2% at HK$21.05.
 
Beijing-based oncology big data company LinkDoc Technology has raised US$150.7 million Series D funding from sovereign wealth fund China Investment Corporation. Founded in 2014, LinkDoc collects and standardises healthcare data of more than 3,000 diseases and then provides data to healthcare regulators, researchers, insurers and pharmaceutical companies.
 
Hangzhou-based Biopharmaceutical company Adlai Nortye Biopharma has raised US$53 million Series B funding led by YuanMing Capital. Matrix Partners China, DT Capital Partners and Yahui Precision Medicine Fund also participated.
 
Sisram Medical, a Israeli subsidiary of Shanghai Fosun Pharmaceutical, and which manufactures medical aesthetics devices, has laid out its vision to become a global medtech leader, leveraging its solid funding channels, strong r&d capabilities and comprehensive portfolio of products.
 
Kenanga Research has a look at Nova Wellness Group which is to raise M$44.9 million in an IPO on the Bursa Malaysia’s ACE board. It is selling 81.7 million shares at M$0.55 per share. Kenanga is principal adviser, sponsor, underwriter and placement agent. “We like Nova Wellness for superior margins, which are head and shoulders above its peers, and new capacity expansion to boost earnings. Our indicative target price is M$0.60 based on 15x FY19E EPS,” it said. Less surprisingly, PublicInvest Research is also positive on the group’s “thick profit margin” and has it at a fair value of M$0.62. It lists on 20 July.
 
It has been a long process, but according to reports in The Mint newspaper, IHH Healthcare, Asia’s largest healthcare company, is likely to acquire a 51% stake in Fortis Healthcare, the country’s second largest private hospital chain, for up to US$786.4 million. It reports that IHH Healthcare will first buy around 25% through a mix of direct acquisition and preferential allotment, and then make an open offer to buy at least an additional 26%. It is also likely to acquire RHT Health Trust, the first business trust listed on the Singapore stock exchange with a portfolio comprising healthcare assets in India, separately. Shares in RHT dipped as low as 3.9% yesterday before closing down 2.6%. Today they lost another 1.3% to S$0.74 (US$0.55)
 
Singapore government investment company Temasek Holdings has taken a US$50 million stake in Asia Healthcare Holdings (AHH), an operating and investment platform founded by TPG Capital.
 
Adelaide-headquartered health informatics company Alcidion Corporation has signed a five-year deal worth more than A$4.75 million (US$3.5 million) with ACT Health to deploy an electronic patient journey board solution, that fully integrates its Miya Flow, Patientrack and Smartpage software components.
 
In other legal news, private specialist healthcare provider Singapore Medical Group has agreed a settlement with the owners of Eastlife Private and Maxglobe Private. The case has been settled “with no liability on the part of the company and its subsidiaries,” SMG said.

Posted on: 11/07/2018 UTC+08:00


News

SGX-listed Acromec, which designs and builds medical and sterile cleanrooms, has secured another contract in the healthcare sector valued at S$2.9 million (US$2.1 million). It is expected to be completed by the end of the year.
Sydney-based 1st Group, the Australian digital health, media and technology group, has appointed Richard Rogers as chief financial officer. He joins from Lenovo Australia & New Zealand.
Asia-focused market expansion services provider DKSH is to sell its healthcare business in China to Warburg Pincus for SFr100 million (US$100.7 million).
Summerset Group, New Zealand’s third-largest listed retirement village operator, has said that it expects underlying half year profits to jump between 21% and 26% to NZ$43 million (US$29.4 million) and NZ$45 million.
Patient flow management firm Jayex Healthcare has signed a binding licence agreement with medical cannabis company MediCann NZ under which it will be granted the exclusive use and application of its technologies in New Zealand in connection with their proposed sale and distribution of medical cannabis products in line with the expected deregulation in New Zealand of medical cannabis.
IDS Medical Systems Group, a leading medical supply-chain solutions company in Asia, and Tencent-backed We Doctor have formed idsMED WeDoctor China, the country’s first smart medical supply chain solutions and procurement company.
Australian medtech company Resonance Health has signed an alliance partner agreement with Blackford Analysis which grants it rights to integrate and combine Resonance Health products with, or sell and license Resonance Health products in connection with the host application.
Malaysian medical services company Adventa has scrapped plans to raise M$80.2 million (US$20.3 million) after Top Glove Corporation, the world’s largest rubber glove manufacturer, announced legal proceedings against its parent Adventa Capital and two of its directors.



Analysis

Ping An Healthcare and Technology, formerly known as Good Doctor, has signed contracts with nearly 200 large corporations, including Vanke, Greentown, Bank of China, China Telecom, China National Nuclear Power, Evergrande Group and provides services to nearly 1.5 million employees, covering 27 provinces, autonomous regions and municipalities.
Earlier this week, Cigna Corporation released the results of its 2018 Cigna 360° Well-Being Survey – Future Assured. The findings, which were tracked over a four year period, show rising awareness of the need to prepare for old age, which includes being continually active and financially independent. As a result, people are working harder today, and increasingly calling on employers to help in managing workplace stress.
Auckland-based ehealth software company Orion Health is to sell off two significant parts of its business to private equity technology investor Hg for NZ$225 million (US$150.7 million). The sale could revitalise a company that has struggled recently.
Aon’s inaugural Asia Healthcare Trends Report 2017/18 shows that although Hong Kong has a lower medical inflation rate than the average in APAC, it is the highest in Greater China.
Out of date and unsecure fax machines are still being used to share patient information between healthcare providers in Australia. Not only do fax machines cause frustration for healthcare providers trying to communicate with each other, they can also cause patient harm.
Health and well-being programmes are fragmented and do not meet the needs of stressed Asia workforces, finds Willis Towers Watson. By and large, employers in Asia still miss the mark when it comes to their health and well-being benefits, with many employees feeling that their needs are not met, according to research from the global advisory, broking and solutions company.
According to a survey of biopharma companies by L.E.K. Consulting, the majority of firms from Western Europe or the US are interested in China, specifically those at Phase 2 or later development.
Sara Jost, global healthcare industry lead at BlackBerry, explains that putting the systems and procedures in place to deliver a healthy and secure digital healthcare system will protect patient health information and support medical innovation.
my images

Podcasts

HealthInvestor Asia twitter feed