Financial intelligence for Asia's healthcare markets
Remember me:

HIAS: Change that is unprecedented

“Asia is going through change that is unprecedented,” said Abrar Mir, managing partner, Quadria Capital, delivering the opening keynote speech at this year’s HealthInvestor Asia Summit at the Marina Bay Sands in Singapore.

The global centre of gravity is shifting to the east, he said. By 2030 the healthcare spend in Asia will be US$4.3 trillion. “It is larger than the US and Europe combined – that is how big the opportunities are,” he said. “And many world leading companies are pivoting the future of their companies to Asia.”

He spoke about the demographic and economic underlying trends. First, the massive boost in the number of new babies born every year. Second, the rapidity of economic change. “In the generation of or parents in the 1950s, not one economy from Asia was in top five in the world. By 2030 four of the five largest economies will be Asian,” he added pointing out that even Indonesia will be larger than UK France and Germany.

The challenge of success and growing urbanisation is that the region has 65% to 70% of the world disease burden. “In Asia this used to be treatable diseases. But the nature of that burden is now chronic. It changes the nature of the burden on healthcare,” he said. Asians are now living 30 years longer than grandparents.

So what are the challenges? First and foremost Mir pointed to infrastructure. “The World Health Organisation predicts that as a minimum there should be four hospitals for 1,000 people. In fact there are 0.4 per 1,000,” he said. Affordable care is also out of reach of most. “You need to remember that 2.6 billion people in Asia live below US$2 per day. Many Asian live one accident away from financial catastrophe”

And third, he points to the fact that the vast majority of the population does not realise that there is a disease burden. “If people do not realise that they have diabetes or cardiovascular diseases, the disease burden increases and accessing that opportunity becomes harder.”

There is also a problem in the market itself. Mir is blunt when he points out that valuations in Asia are crazy. He speaks of the fact that they are unsustainable and calls out the Goldilocks syndrome. Mir mentions a healthcare company in Indonesia that listed at the same time as Facebook. “It had a valuation higher than Facebook,” he said. And the difficult of currency risk is unavoidable (“It is impossible to put into a hedging mechanism”) but for all of the negatives, underlying profitability is irreversible and remains “the wind beneath our wings”.

For companies to be successful, they need to make sure that they have the right business models. Of course there are barriers – not enough doctors, affordability and awareness – but there is opportunity. Some of the best hospital groups in the US have 12% EBITDA margins while in Europe it is typically 15%. “In Asia, despite the fact that clinics and hospitals are treating poorer and cash patients, it is 20% and can be as high as 40-50%,” Mir said.

What underlies Mir’s philosophy is that even though his caveats might sound cautious, he believes that the private sector will lead the way. “Ultimately the entire game is about bigger and better,” he said emphasising that Asia continues to represent a once in a lifetime opportunity. “In Asia I believe anything is possible, but I believe that nothing is ever easy,” he concluded.

Posted on: 18/05/2018 UTC+08:00


News

Beijing-based healthcare service platform Miaoshou Doctor has completed a ¥1.5 billion (US$232 million) Series F round of financing.
Chinese digital technology company, Xisoft Technology, which focuses on hospital operation management, has raised ¥100 million ($15.65 million) in Series A+ financing.
Hearing health company Olive Union has closed a $7M Series B round led by Beyond Next Ventures, Bonds Investment Groups and Japan Policy Finance Corporation.
Long Hill Capital, a venture capital firm in China, has closed on more than $300 million for its third fund on 15 March.
Eluminex Biosciences, an ophthalmic biotechnology company has completed a $50 million Series A financing co-led by Lilly Asia Ventures, GL Ventures (venture capital arm of Hillhouse Capital), and Quan Capital.
TVM Capital Healthcare, a global private equity and growth capital firm focused on emerging markets, has announced two team additions today.
In partnership with VeChain and DNV GL, Renji Hospital, a hospital in China affiliated with the Shanghai Jiaotong University School of Medicine, has launched the world's first blockchain-enabled intelligent tumour treatment centre.
Hong Kong-based BuyHive, a new global sourcing start-up that connects buyers with trusted verified overseas suppliers, has launched a PPE programme to help US companies optimise their post-Covid supply chains.



Analysis

L.E.K. Consulting’s Fabio La Mola tells HealthInvestor Asia about a healthcare market going through major changes – creating significant opportunities for investors in the region.
Edwin Tong, senior minister for health, explains how the Ministry of Health in Singapore is supporting the growth in the number of seniors with Alzheimer's.
Penny Wan, regional vice-president and general manager, Japan and APAC, Amgen, writes about the public health challenge of cardiovascular diseases.
French-based international ophthalmic optics company Essilor has signed Letters of Intent with the Royal Government of Bhutan and the Central Monastic Body to strengthen the country’s vision care infrastructure.
April Chang, country manager at Cigna Singapore, argues that wellness programmes at work can lead to reduced absenteeism, higher productivity and increased morale among employees.
Steven Fang understands how to set up a healthcare company. Not only is he chief executive and founder of ASX-listed oncology company Invitrocue, he was also the founder of Singapore-based Cordlife Group, a healthcare company which provides cord blood and cord lining banking services.
Imagine a world in which you can consult with your doctor via video. She asks for a blood sample, which can be collected and analysed from a device in your home. After that is diagnosed, the prescription is automatically sent to the pharmacy and Uber then picks it up. The time from diagnosis to drugs at your home is only 60 minutes.
The digitisation of health data through blockchain technology is a groundbreaking solution that will empower patients and provide them with better access to healthcare.


Podcasts

HealthInvestor Asia twitter feed










A Rolex Yacht-Master I Ladies Replica watch is basically a person watch that's crafted inside an identical fashion with a well-known maker¡¯s real piece. Purchasing Replica Watches seems as an excellent idea. Anyway,ON perfectcloneshop.com replica Rolex Yacht-Master Ladies watches are affordable, look almost the identical while using real ones and could easily acquired.