China-based insurance group Taikang formed a RMB20bn ($2.98bn) healthcare investment fund in partnership with the municipal government of the city of Wuhan yesterday, China Money Network has reported.
The as yet unnamed vehicle will invest in healthcare-related companies situated in Wuhan or willing to open offices there. It is targeting areas such as genomic and stem cell-related drug development, gene detection and editing technology and intelligent health software.
The fund is currently raising the first half of the capital and has secured commitments from investors including online health services portal WeDoctor and pharmacy chain Jointown Pharmaceutical.
Financial services group Agricultural Bank of China and cross-border investment fund YuanMing Capital are also among the fund’s limited partners (LPs).
Taikang has not been as active in corporate venturing as rival Ping An, but has made some investments, securing exits in initial public offerings for drug developers Innovent Biologics and CStone Pharmaceuticals as well as car sales service provider Cango in the past year.
Wuhan’s involvement follows the municipal government’s establishment of a scheme last week to boost its healthcare industry. It aims to have at least five local healthcare businesses valued at more than RMB10bn each situated in the city by 2025.
