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The healthy way to succeed in business

Updated: 2013-11-12 10:16
By Cai Xiao ( China Daily)

Fosun invested in Hong Kong-listed Sinopharm Group Co Ltd in 2006 and became its second-largest shareholder. The company is the main suppliers of 70 percent of hospitals in China.

Fosun also reached strategic cooperation with Chindex International Inc, a leading independent US provider of Western healthcare products and services in China in 2010. It acquired lots of sales experience in Chinese hospitals.

General hospitals, special hospitals and beauty shops with medical qualifications will all be Alma's target distribution areas when entering the Chinese market. Household products will also be targeted.

Liang said they also showed confidence in Alma's leading position in the world and strong innovation capabilities.

The third investment by Fosun in the first half of the year was investing $22.5 million in US-based Saladax Biomedical, which develops and commercializes novel diagnostic trials for the practical delivery of personalized medicine.

The proprietary line of MyCare trials improves the efficacy of existing drugs through optimized dosage.

Saladax's initial focus is oncology, with a portfolio of 13 chemotherapy drug dose management trials in various stages of development.

Liang said in this way, patients can avoid using unnecessary medicine and their pain can be largely reduced. Furthermore, medical fees can be cut.

"We feel confident in explaining the technology and application of Saladax to the Chinese government and winning their support," said Liang, adding that the application will be introduced to both private and public hospitals in China.

The Chinese medical service market is of great potential. The revenue of hospitals totaled 1.25 trillion yuan ($205 billion) in 2011, according to a report of the BCG Consulting Group in June.

Public hospitals used to occupy the dominant position, but private ones have developed fast in recent years, with their average annual growth rate reaching 16 percent between 2008 and 2011.

According to the Chinese government's plan, the service value of private hospitals in China will account for 20 percent in 2015 of that of all hospitals in China. With policy encouragement, the medical service sector has attracted private equity investors, listed pharmaceutical enterprises, industry capital and foreign and local medical groups.

The detailed sectors full of investment opportunities include high-end healthcare, private special clinic chains and private comprehensive hospitals as well as the restructuring of public hospitals.

Investing in medical equipment in China is also of great potential. The value of the Chinese medical equipment market is only about 15 percent of the Chinese pharmaceutical market, while the average ratio in the world is about 40 percent.

 
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