US medical device maker gets $51m for China expansion
MID Labs, a US-based medical devices manufacturer that focuses on eye surgery, has received $51 million in funding from a group of investors to support its expansion into China.
OrbiMed and Frontline BioVentures led the round, with participation from SoftBank China Venture Capital and Sungent BioVenture, among others.
Founded in 1981 by Dr. Carl Wang, MID Labs produces tools used in vitreoretinal surgery, which addresses conditions at the back of the eye, including retinal detachment. Its products are supplied to more than 30 countries.
"We look forward to working with MID Labs team to realize its potential of innovation capability, efficient manufacturing, and expansion in China," said Dr. David Wang, senior managing director at OrbiMed, in a statement.
OrbiMed has $12 billion in assets under management and invests in the healthcare sector globally. Earlier this year, the Asian Development Bank (ADB) said it would commit up to $60 million to the firm's second regional healthcare fund, which is targeting $300 million. OrbiMed raised $188 million for its previous fund in 2008.
According to AVCJ Research, private equity investors have poured more than $880 million into China-based manufacturers of surgical instruments, appliances and supplies since 2006 across over 50 disclosed deals. A further 40 transactions were completed but the investment sizes were not disclosed.
There is now an increasing focus on bringing healthcare technologies that have been developed overseas into China. PE investors familiar with the local market can offer support in terms of securing domestic regulatory approvals, protecting intellectual property and building manufacturing and distribution relationships.
Aequus Capital - a PE firm set up by executives from Avenue Capital, CLSA Capital Partners and Dinova Capital that is seeking to raise $200 for an Asia healthcare fund - has a stated interest in this field. For example, it is looking for technologies in the early-stage diagnosis and treatment of lung cancer, which are in strong demand in China.
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