ADB commits $60m to OrbiMed's second Asia fund
The Asian Development Bank (ADB) is to commit up to $60 million to Orbimed Advisors' second Asian healthcare fund - OrbiMed Asia Partners II.
The vehicle launched early last year and is looking to raise $300 million - believed to be revised from an earlier target of $500 million. The fund is considerably larger than its 2008 vintage predecessor, which raised $188 million.
It will invest in companies across the healthcare sector in Asia, particularly in China and India. Targeted sectors include pharmaceuticals, medical devices and diagnostics, hospitals and health service providers, and contract research or manufacturing companies.
Samuel Isaly, OrbiMed's founder and managing partner, said last year that India is likely to account for as much as 65% of the fund's investments compared to just over 40% for Fund I, which backed seven Indian companies.
These include: bio-pharma specialist Bharat Serums and Vaccines; clinical trials provider Ecron Acunova; hospital chain KIMS India; drug developers Shasun Pharmaceuticals and Claris Lifesciences; neonatal and pediatric hospital chain Surya; and, more recently, Blue Sapphire Healthcare.
Six of the 16 companies currently in the Fund I portfolio are based in China - ranging from invisible orthodontics manufacturer EA to medical imaging specialist Whale Imaging . The fund also has three investments each in South Korea, Israel and the US.
"Healthcare is a specialized sector with limited participation across mainstream institutional investors, particularly in Asia," Todd Freeland, director general of ADB's private sector operations department, said in a statement. "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,"
OrbiMed has approximately $10 billion of assets under management and has invested approximately $1.7 billion in more than 165 private healthcare companies, since 1993.
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