Chemclin

Chemclin Image

Region

East Asia

Country

China

Deal type

Acquisition

Investment date

2013

Status date

Current

Better healthcare through diagnostics

China’s transformation over the past 20 years has been economic as much as social. An ageing population, lifestyle changes and rising incomes have led to increased demand for better healthcare. Whilst China has the greatest number of patients with infectious diseases and also virus carriers, non-communicable diseases such as cancers and diabetes are becoming more prevalent. The Chinese government and individuals are giving more attention to the prevention and diagnosis of diseases than ever before.

As a result, one of the fastest growing sectors in the medical technology industry is in-vitro diagnostics (IVD), which is used for disease screening, diagnosis and monitoring via tests of individuals samples, such as blood. China’s IVD sector is the fourth largest globally and is set to grow at 17% CAGR by 2017 to RMB37 billion. Within IVD, immunoassay is the largest sub-segment, accounting for 33% of the total market and projected to grow at 20% CAGR through to 2017.

Founded in 1999, Chemclin is one of China’s leading local manufacturers of IVD products. In particular, it focuses on Chemiluminescence Immunoassay (CLIA) technology, which is gradually replacing other types of less advanced immunoassay IVD. Within China’s immunoassay IVD market, Chemclin is the #1 local manufacturer of tests for infectious diseases and the #2 local manufacturer of tests for oncology.

In 2013, Actis led a consortium to acquire a majority stake in Chemclin. Co-investors include CICC Private Equity and OrbiMed. In 2014, as part of the platform strategy for Chemclin, Actis originated, provided financing to, and led Chemclin to acquire a controlling stake in Beyond Diagnostics, a local IVD company with proprietary and world-leading complimentary CLIA technology and product portfolio to target new customer segments.

Actis supported the management of both companies to conduct a successful integration that has already led to strong growth of Beyond’s portfolio in 2015. This bolt-on acquisition is expected to broaden Chemclin’s product offering, enhance its R&D capability and pipeline, expand its hospitals segment coverage and further strengthen its leadership in the China immunoassay space.