ADB invests $60m on healthcare in Asia
The Asian Development Bank (ADB) is investing up to $60 million in a
new healthcare private equity fund focused exclusively on Asia.
ADB’s Board of Directors approved an equity investment in OrbiMed
Asia Partners II, L.P, which aims at raising $300 million in capital to
be invested in health care companies across Asia. The agreement was
signed yesterday.
“Healthcare is a specialised sector with limited participation across
mainstream institutional investors, particularly in Asia. As one of the
anchor investors in the fund, ADB will help catalyse additional
investments in healthcare companies and sub-sectors that are envisioned
to improve the delivery of healthcare goods and services at higher
quality and lower cost,” said Director General of ADB’s Private Sector
Operations Department, Todd Freeland.
Providing affordable and high-quality healthcare is an increasing
challenge for the region’s developing countries, particularly because of
its unique patient and healthcare dynamics, including lower
affordability, high prevalence of certain diseases, geographical
dispersion and urban and rural inequalities.
The fund intends to invest in companies across the healthcare sector
in Asia. A substantial portion of portfolio investments are expected to
take place in the People’s Republic of China (PRC) and India, including
rural and second or third-tier cities within those geographies.
The targeted sectors include pharmaceuticals, medical devices and
diagnostics, hospitals and health service providers and contract
research or manufacturing companies.
The fund is managed by OrbiMed Advisers LLC, a leading global
investment firm dedicated to the healthcare sector, with approximately
$10 billion of assets under management.
Since 1993, OrbiMed has invested approximately $1.7 billion in more
than 165 private healthcare companies. OrbiMed set up its first pan-Asia
health care private equity fund in 2008. |