Originally Posted by Newcastle
AsiaMedic to establish a local new cord blood stem cell banking
centre with Cryoviva International
AsiaMedic expands healthcare portfolio by entering the local cord blood
banking scene as the 3rd private sector market player
JV partner to provide technical know-how, technology and additional sales
Leverage on the stem cell technology originated from US-based Lifeforce
Replicate its partner’s successful JVs in India and Thailand
Singapore, 2 July 2013 – SGX Catalist-listed AsiaMedic Limited (“AsiaMedic” or the "Group", “亚美德科医
疗集团”), a premier healthcare provider in Asia, is pleased to announce it has entered into a joint venture
("JV") agreement with Cryoviva International Pte Ltd (“Cryoviva”) to establish the business of cord blood(1)
stem cells banking in Singapore. The new joint venture company will be named "Cryoviva Singapore Pte
Ltd" ("Cryoviva Singapore").
The Group is confident that this JV can establish its footing by replicating its partner's successful ventures
in India and Thailand and leveraging on an FDA(2) approved stem cell technology originated from US-based
Lifeforce Cryobanks. The JV partner, Cryoviva, possesses the track record and business know-how given its
market leadership in India and Thailand. In addition, its network of expectant mothers, coupled with
AsiaMedic's client base, collectively expands the JV's sales network for cord blood stem cell banking.
Lifeforce Cryobanks is ranked as the Global Top 10 Cord Blood Bank based on profitability, innovative
business models and marketing strategies at the World Cord Blood Congress 2013.
Profile of JV Partner
Cryoviva is a Singapore incorporated company controlled by Mr Ravi Jaipura, Chairman of India-based RJ
Corp, a conglomerate with businesses in real estate, hospitality, food & beverage, healthcare and
education. Mr Jaipura holds a 70% stake in Cryoviva while the remaining 30% is held by Dr T Chandroo,
Chairman of Modern Montessori International Group (MMI), a local company which specialises in early
childhood education in the Asia-Pacific.
In 2006, RJ Corp went into a JV with US-based Lifeforce Cryobanks to set up Cryobanks International India
Private Limited ("Cryobanks India"), which became the first public and private cord blood stem cell bank in
India and has retained its market leadership today. Following the success in India, RJ Corp ventured into Thailand’s stem cell banking industry with JV partner Indorama Group to form Cyroviva Thailand in 2008.
Despite being a late entrant, Cyroviva dominated the market with above 50% market share within a short
span of 3 years.
Cyroviva Thailand's success can be attributed to various factors including: (1) Security and reliability of
storage samples - Cyroviva Thailand’s laboratories and storage facilities were unaffected by the major flood
in 2011; (2) Quality assurance - The technology powering Lifeforce Cryobanks is approved by FDA(2), in
addition, Lifeforce Cryobanks consistently exceeds the industry benchmark standards set by National
Marrow Donor Program (NMDP) and American Association of Blood Banks (AABB); and (3) highly
personalized care and service.
Cryoviva Singapore will enter into a license agreement with Cryobanks International India Private Limited
for utilising the technical know-how and technology for setting up and operating the stem cell banking
centre in Singapore. Cryoviva SG will finalise a location for its laboratory by the end of 2013, while its sales
office will be housed in AsiaMedic's flagship centre in Shaw House. Cryoviva SG is scheduled to start
operating in 2014. Dr Ashish Munjal from Cryobanks India has been appointed the General Manager to
spearhead the business locally. Dr Munjal brings with him several years of valuable experience in the
operations and business of cord blood banking. On the marketing front, the new sales team will be
replicating Thailand’s sales approach and collaborating with AsiaMedic's partner physicians for referrals
and new sales.
Ownership structure of the JV
Cryoviva will hold 75% while AsiaMedic takes up the remaining 25% stake in the JV. However, AsiaMedic
has the option to raise its stake to 49% within two years following the incorporation of the JV company, at
a price per equity share based on fair market. The projected initial capital investment for operations is
S$1.8 million, of which will be proportionately contributed by the JV partners based on the respective
shareholdings. AsiaMedic intends to fund this JV via internal resources and bank borrowings.
Commenting on this JV, Dr. Wong Weng Hong, CEO of AsiaMedic, said: “We are exhilarated about this
new partnership with Cryoviva. Apart from expanding the scope of our healthcare services, AsiaMedic can
also cross- sell our services by tapping into MMI's client base of expectant mothers.
With heighten awareness and understanding of the advantages in cord blood storage, we believe there is
more than adequate room for a new market player like Cryoviva SG. Given our partner’s successful ventures
in India and Thailand, we are optimistic about replicating the business model here in Singapore. This
venture also opens up new opportunities for AsiaMedic's expansion in the region."
Mr Ravi Jaipura, Chairman of India-based RJ Corp, said: “This partnership is a strategic fit for both parties
given AsiaMedic's established reputation as a premier healthcare provider in the local healthcare scene and
our sales network comprising expatriates, locals and overseas personnel. We believe this partnership will
help us to foray into the exciting market of Singapore for cord blood banking and also act as a strategic
beachhead for venturing together in other major markets of Indonesia, Malaysia, Philippines and Myanmar
for cord blood banking business.
For me this is the first venture in Singapore and we are looking forward to open more businesses including
medical and food & beverages with keeping Singapore as the headquarters."
The joint venture is not expected to have any material impact on the earnings per share or net tangible
assets per share of the Group for the financial year ending 31 December 2013.
None of the Directors of the Company has any interest, direct or indirect, in the above transaction.
The Directors are not aware of any substantial shareholder having any interest, direct or indirect, in the
said transaction and have not received any notification of any interest in the transaction from any