OrbiMed Asia Partners II has a target of $300m. ADB’s board of directors approved the commitment to the fund, which will 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.
“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, he added, particularly because of its unique patient and healthcare dynamics, including lower affordability, high prevalence of certain diseases, geographical dispersion, and urban and rural inequalities.
OrbiMed has approximately $10bn of assets under management. Since 1993, the firm has invested approximately $1.7bn in more than 165 private healthcare companies. The firm’s fifth generalist fund recently secured a commitment from US pension fund investor CalSTRS.
OrbiMed established its first pan-Asia health care private equity fund in 2008.
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