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Laxman Pai, Opalesque Asia: At the midpoint of 2021, momentum for venture capital (VC) transactions in the sector looks set to continue; 561 healthcare-related VC deals have been concluded so far this year, for an aggregate value of $14bn - more than 67% of 2020's level.
According to Preqin data, aggregate deal value almost reached $20bn in 2020 alone.
"Venture capital (VC) deal activity in Asia-Pacific's healthcare sector has accelerated since the onset of the pandemic. Deal pipelines in the healthcare sector are maturing, and China, in particular, is ripe for venture capital and private equity investment," said Valerie Kor, writer, Preqin APAC.
The report by Preqin noted that interestingly, two-thirds of the approximately 1,000 VC-backed deals completed in Asia-Pacific in the past 18 months were for healthcare assets located in Mainland China.
By value, China has soaked up a staggering $18bn, accounting for 89% of total aggregate deal value. The remaining third of deals were completed predominantly in Japan, South Korea, and India.
Of all the VC-backed healthcare deals in Asia-Pacific, those in the pharmaceutical and biotechnology sectors have contributed the most to aggregate deal value, with their shares at 36% and 29% respectively in 2020.
However, health tech and innovative medical device firms are increasingly attractive, despite averaging 8% and 16% of total deal value respectively for the past three years. Deals in these sectors hav...................... To view our full article Click here
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