Jiuding Capital Partner Bo YU Attended “Bio & Healthcare Industry Investment Forum”
On June 14th, “The 2nd China Bio & Healthcare Industry Investment Forum 2012” hosted by Zero2IPO was held in Beijing. Relevant administrators from China Food and Drug Administration and Ministry of Human Resources and Social Security, and many investment institutions attended the forum.
On the forum, Bo YU, Jiuding Capital partner and head of Jiuding Pharmaceutical Fund, expressed his view on pharmaceutical investment industry. He thought that industrialization and liberalization of medical treatment industry has just started, while state policies and macro environment are not very clear; and for investments in the medical treatment industry, we should grasp micro investment opportunities under the condition of certain clear macro environment.
Bo YU also expressed that Jiuding Capital strictly sticks to its own standards and only invests in three directions. The first is high-end medical treatment. “Demand by high-end people is very strong, and China’s medicaltreatment must have a process of building a hierarchical medical system. Furthermore, investments in specialty chain hospitals for clear diseases will have good opportunities. The second is medical institutes having standard cure solutions. Bo YU said that in the USA cost of doctors accounts for 65% of the total medicaltreatment cost while in China the percentage is 8%. The third is county level hospitals. Bo YU holds that for private capital to enter medicaltreatment investment, there are five barriers: 1st is policy barrier, 2nd is talent barrier, 3rd is capital barrier, 4th is technology barrier, and 5th is consumption recognition barrier. “In the field of consumption recognition, county-level hospitals have a typical “block out” advantage, while undertaking national basic medicaltreatment”, Bo YU said.