China-based medical device manufacturer LifeTech Scientific partnered US-based private equity firm Ally Bridge Group (ABG) yesterday to launch a medical technology fund of undisclosed size.
The fund will help portfolio companies expand in China and is intended to combine LifeTech’s expertise in the country, where an expedited drug approval process was approved in October 2017, with ABG’s international investment profile.
LifeTech received funding from ABG in 2011, and the latter facilitated medical technology producer Medtronic’s $66.2m investment in LifeTech in 2012, in which it acquired a 19% equity stake.
The firms have now agreed to become preferred healthcare investment partners, and LifeTech will also back ABG’s funds, which include the China-focused Ally Bridge LB Healthcare Fund launched in 2015.
ABG founder and CEO Frank Yu said: “LifeTech has a proven track record in commercializing innovative medical devices in China and overseas, and in collaborating with global medtech companies in localising world-class products in China, which is increasingly critical for foreign technologies entering into China.
“The ABG team has invested in – and has been working closely with – LifeTech since 2011, which has been very successful. This strategic partnership breaks new ground in coupling investments in – with operational value-add to – global medtech companies entering the China healthcare market.”