ADB Invests US$60 Million To Boost Healthcare In Asia

The Asian Development Bank invests US$60 million in OrbiMed Asia to improve the delivery of healthcare services.

AsianScientist (May 16, 2014) – The Asian Development Bank (ADB) is investing up to US$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 is aiming to raise US$300 million in capital to be invested in healthcare companies across Asia.

“Healthcare is a specialized sector with limited participation across mainstream institutional investors, particularly in Asia. As one of the anchor investors in the fund, ADB will help catalyze 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 Todd Freeland, Director General of ADB’s Private Sector Operations Department.

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 global investment firm dedicated to the healthcare sector, with approximately US$10 billion of assets under management. OrbiMed established its first pan-Asia healthcare private equity fund in 2008.

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Source: Asian Development Bank.

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