Capitol Health Inks JV with China’s CITIC Pharma

Capitol Health

Capitol Health Limited (ASX:CAJ) has announced that it has entered into a Memorandum of Understanding (MOU) to provide design, consulting and clinic management services to CITIC Pharmaceutical (Shenzhen) Co., Ltd.

CITIC Pharmaceutical, a majority controlled subsidiary of CITIC Medical and Health Group Co., Ltd (a wholly owned subsidiary of CITIC Group), is a large comprehensive pharmaceutical enterprise integrating medicine supply to hospitals, cross-regional commercial distribution, medical investment, medical instruments and consumables sales, and a medicine retailing service.

The MOU is non-binding and provides for future joint ventures in design, consulting, and operational management of CITIC’s proposed new private independent diagnostic imaging centers in China, along with a joint venture providing the potential for Capitol to take ownership stakes in these diagnostic imaging centers.

Capitol is currently negotiating the formal terms of these joint ventures.

Read: EU Firm Gets US Approval for Cannabis-based Cosmetic Products

CITIC’s early diagnostic imaging centers are planned for cities where they already own hospitals which should generate patient referrals.

The CITIC Pharmaceutical MOU represents the first agreement in Capitol’s broader strategy to participate in the fast growing Chinese diagnostic imaging market. The recent Chinese Government healthcare reform resulted in substantial growth in the private healthcare industry in China.

It has seen growth in private hospitals, private pathology operations, private health check networks, and more recently the approval for private independent diagnostic imaging centers.

Read: Virtus Health Acquires Canberra Fertility Centre

“China represents a significant opportunity for us to leverage our world class medical staff and experience in design, development and operations of Diagnostic Imaging Centres. We believe the growth in China’s private healthcare sector, along with the recent reforms allowing Diagnostic Imaging Centres to operate privately outside of hospitals, provides a solid market entry strategy for Capitol,” John Conidi, Managing Director of Capitol.
Capitol Health is a leading provider of diagnostic imaging and related services to the Australian healthcare market. Headquartered in Melbourne, Victoria the Company owns and operates approximately 70 clinics throughout Victoria and New South Wales.

The Company’s operational focus is on delivering a community-based infrastructure for radiologists and related medical practitioners to deliver optimal, efficient, accurate healthcare service outcomes for patients. –