Singapore's Novena Global Lifecare announced yesterday that China's Sinopharm Capital and Cedarlake Capital have invested US$20 million (S$27.2 million) in the company.
Novena is one of the largest integrated medical healthcare and aesthetic groups regionally, with a presence in Singapore, China, Hong Kong, South Korea, Taiwan, Indonesia, India and Malaysia.
Founded in 2010 by former investment bankers and cousins Terence and Nelson Loh, it has more than two million patients in its global patient database.
Sinopharm Capital is the largest medical and healthcare group in China. This is its first investment in a Singapore healthcare company, and a key milestone for both Sinopharm and Novena.
Joining this round of fund-raising is Cedarlake Capital, a global investment platform focused on cross-border industry synergies.
The three will also create a Sino-Singapore healthcare fund with a target size of US$150 million, which will primarily invest in a portfolio of companies involved in medical services, biomedical projects, mature drugs and precision medicine in South-east Asia.
"Besides growing Novena Global Lifecare's position and offerings in China that will benefit the living standards of Chinese consumers, the cooperation will also enable Sinopharm to expand its presence in South-east Asian markets to support their growing healthcare and wellness and benefit the people of all countries along the Belt and Road Initiative," said Cedarlake Capital founder and chairman Bao Yi.
Novena hopes the partnership will allow it to expand more strategically in China, tapping Sinopharm's expertise and existing distribution network. "This is the first healthcare fund between China and Singapore, and it allows us to create a bigger platform for healthcare companies. We can help established players that want to expand out of the South-east Asia market to enter the Chinese market, while the fund gives Chinese investors a gateway to South-east Asia," said Novena's executive chairman Nelson Loh.
Said Sinopharm president Wu Aimin: "Singapore has a good reputation in the healthcare field, we see the market growing fast here. This partnership will provide a platform for us to enter the South-east Asia market."
The three parties held a signing ceremony yesterday at the National Gallery Singapore to mark the strategic partnership.