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HIAS: A shift from DCM to IPO

That there has been a shift away from the debt capital markets (DCM), was one of the takeaways from the “Healthcare and capital markets” session at this year’s HealthInvestor Asia Summit at the Marina Bay Sands in Singapore.

Last year was a big year for DCM, driven by an ability to take debt off the balance sheet, said Eugene Hong, senior vice-president, DBS Bank. In the past, he explained that cash rich healthcare companies didn’t need debt. Then perps became the idea of the day. “This year the bond appetite has tapered,” he said. There is a huge line up of IPOs coming up and the DCM market is quiet, but this is “a cyclical thing”.

Saurabh Gupta, managing director, head of consumer, retail & healthcare investment banking, at Maybank Kim Eng Securities, agreed that IPOs were the current flavour of the day. “It is fair to say that valuations have been fuelled by investor interest – institutional as well as retail,” he said. He pointed out the dynamic in Thailand that everyone with even a single hospital wants to IPO, but now across the region we are seeing medical devices, pharma companies as well as early stage drug delivery firms.

Tom Platts, partner, Stephenson Harwood (Singapore) Alliance, who chaired the panel, asked whether we should we look at private markets. “I see private capital more suited for greenfield investment,” said Fabio La Mola, managing director, L.E.K. Singapore. It was a point picked up by Hong who explained that both Raffles and IHH Healthcare were punished by the markets when they announced greenfield investment in China.  

As for M&As, “China is the big brother that is basically gobbling up everything”, said Hong. This is why valuations are being driven up while a further dynamic is the way that Chinese firms have felt the need to move away from targets in the US, thanks to political tensions between the two companies. “Now the focus on Australia,” he said.

Posted on: 15/05/2018 UTC+08:00


News

Bumrungrad Hospital, Thailand’s second-largest listed hospital operator, continues to expand its investment. It will take a 30% stake in Singapore’s iDoctor for US$3 million and will invest Bt270 million (US$8.2 million) in a wellness center clinic under the project name Project Beta of Vitallife.
Ping An Good Doctor, UMP Healthcare and Zheng He Health and Medical Resources have announced their strategic cooperation. The three parties will make full use of their respective advantages and resources to jointly build an online and offline family doctor services network and realise the shared vision of "providing each family with a trusted family doctor". This cooperation also aims to help the government to achieve the goal of promoting and developing family doctor services across China.
HuiyiHuiying (HY), a leading medical imaging artificial intelligence company in China, has closed a strategic investment led by Intel Capital with participation of Beijing Singularity Power Investment Fund (SPC), marking the first investments by the firms in the medical AI sector in China. HY will use the funding proceeds to support its business development, product innovation and talent recruitment initiatives.
Australian hearing implant manufacturer Cochlear and GN, the global leader in intelligent audio solutions, have signed a new agreement to expand their Smart Hearing Alliance collaboration significantly.
China's leading clinical genomics testing company, Berry Genomics, and Prenetics – the leading consumer digital health and genetics testing company in southeast Asia and Europe – will establish a joint venture company that will deliver transformative consumer digital health and genetics testing services in mainland China.
Ping An Good Doctor (PAGD) has announced that the first commercially operational unmanned clinic in China, which it researched and developed, "One-minute Clinics" has been formally revealed in a scenic area in Wuzhen. It will provide a high-speed, convenient, one-stop shop for medical and healthcare services for nearby residents, visitors to the scenic area and guests of the 2018 World Internet Conference.
The Morrison government has announced a further A$34.8 million (US$24.7 million) investment in renal dialysis in remote areas.
Rici Healthcare, a private general medical services group in the Yangtze River Delta, has acquired stakes in a number of companies for Rmb68 million (US$9.8 million by acquiring the medical business of Wang Dejun.



Analysis

The digitisation of health data through blockchain technology is a groundbreaking solution that will empower patients and provide them with better access to healthcare.
For too many companies, a stock market flotation is the be all and end all. Chief executives have spent months on roadshows, locked up with bankers and lawyers. Understandably they think that they can now rest on their laurels.
Today is the launch of Asia Pacific’s first Life Sciences Centre of Excellence. It is part of global management consulting firm LEK Consulting’s Healthcare Insights Centre and aims to drive thought leadership and innovation to elevate the life sciences ecosystem in Singapore and the region.
Dementia remains one of the biggest chronic medical issues to face families. A determination to treat the illness is a challenge that Charles Stacey, president and CEO of Singapore-based Cerecin, has grasped with both hands.
Abrar Mir is that rare thing in the healthcare sector: a voice of reason. It notable that when he speaks at conferences, the chatter outside the auditorium diminishes and seats suddenly become hard to find. Part of this is thanks to his position as managing partner of Singapore-based private equity fund Quadria Healthcare, which he co-founded in 2012. But as much of it is due to his quiet authority and passion, as it is to the US$1.5 billion he has under management across the Asia Pacific region.
SOHO Global Health was founded in 1946 in Jakarta by Tan Tjhoen Lim as an injectables-focused pharmaceutical company. Today it is one of the largest pharmaceutical manufacturing and distribution businesses in Indonesia with a network that covers more than 80% of the hospitals and 90% of the pharmacies in the country.
Anupa Naik speaks nineteen to the dozen. The chief executive of Symple Wellness, a healthcare company set up in Singapore in July last year as an offshoot of the family office AJ Capital, has barely stood still since then, and shows no sign of stopping any time soon.
After listing on the Hong Kong Stock Exchange at the beginning of May, Ping An Healthcare and Technology, formerly known as Good Doctor, shows no sign of slowing down.
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