fbpx 51072-001: OrbiMed Asia Partners III | Asian Development Bank

Regional: OrbiMed Asia Partners III

Nonsovereign (Private) Project | 51072-001 Status: Proposed

ADB''s proposed investment in OAP III is a continuation of its strategy to increase the pace of PSOD investments in health care, as well as an endorsement of OrbiMed as the preferred fund manager given its track record and competitive positioning in the People''s Republic of China (PRC) and India, two of Asia''s fastest growing health care markets. OrbiMed''s Asia team has successfully deployed capital across 36 portfolio companies through two funds, OrbiMed Asia Partners I, LP Fund (OAP I) and OAP II with respectable exits from OAP I. As a demonstration of its origination skills and recognition of ADB as a value-adding partner, OrbiMed has also offered co-investment opportunities to PSOD, including two hospitals in India and a third hospital opportunity currently being explored in the PRC.

Project Details

Project Officer
Mahmud, Farshed Private Sector Operations Department Request for information
Country
  • Regional
Sector
  • Finance
 
Project Name OrbiMed Asia Partners III
Project Number 51072-001
Borrower/Company OrbiMed Asia Partners III, L.P.
Country Regional
Location Regional
Type or Modality of Assistance
Equity Ordinary capital resources USD 60.00 million Proposed
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Health / Health care finance

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Investment Funds & Special Initiatives Div
Responsible ADB Officer Mahmud, Farshed
Project Sponsor(s) OrbiMed Asia GP III, L.P.
Description ADB''s proposed investment in OAP III is a continuation of its strategy to increase the pace of PSOD investments in health care, as well as an endorsement of OrbiMed as the preferred fund manager given its track record and competitive positioning in the People''s Republic of China (PRC) and India, two of Asia''s fastest growing health care markets. OrbiMed''s Asia team has successfully deployed capital across 36 portfolio companies through two funds, OrbiMed Asia Partners I, LP Fund (OAP I) and OAP II with respectable exits from OAP I. As a demonstration of its origination skills and recognition of ADB as a value-adding partner, OrbiMed has also offered co-investment opportunities to PSOD, including two hospitals in India and a third hospital opportunity currently being explored in the PRC.
Objectives and Scope The Fund will target primarily growth equity investments in companies across the healthcare industry, including pharmaceuticals, biotechnology, medical devices, healthcare services and digital health. A majority of these investments is expected to focus on the rapidly growing demand for higher quality, affordable healthcare in the People's Republic of China (PRC) and India with export opportunities to other Asian markets, and with a small pocket of opportunistic investments in Southeast Asia.
Linkage to Country/Regional Strategy The GP's investment strategy for OAP III will be similar to that of the previous fund. The Fund will continue to focus its investment activity in companies that benefit from primarily three drivers, which Orbimed believes create compelling opportunities for PE investment: (1) increasing affordability, accessibility and quality in the delivery of healthcare products, particularly for the underserved Asian consumers; (2) increasing efficiency in the accessibility and use of healthcare services outside of Asian mega-cities; and (3) leveraging Asia's cost advantage and local strengths.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The proposed OAP III transaction is categorized as FI and Fund's investee companies is expected to be classified as category B. OAP III will prohibit a company from marketing or distributing a pharmaceutical product in a jurisdiction where its consumption and/or sale have been banned, withdrawn, or rejected by the Government. For guidance, OAP III will utilize the United Nations Consolidated List of Products Whose Consumption and/or Sale Have Been Banned, Withdrawn, Severely Restricted or Not Approved by Governments and/or bi-annual updates prepared by the World Health Organization on pharmaceuticals, an input to the cited UN Consolidated List. The ESMS will apply key provisions in and make reference with the World Bank Group Environmental, Health and Safety Guidelines for Health Care Facilities, and Pharmaceuticals and Biotechnology Manufacturing; (ii) the American Institute of Architects and the Facility Guidelines Institute, the American Society for Healthcare Engineering of the American Hospital Association, and (iii) the Green Guide for Health Care (www.gghc.org).
Involuntary Resettlement The Fund will adopt an environment and social management system commensurate with the level of potential risks of its investments. This will include screening procedures for categorizing projects based on ADB Safeguards Policy Statement (2009) requirements to exclude investments having impacts on involuntary resettlement.
Indigenous Peoples The Fund will adopt an environment and social management system commensurate with the level of potential risks of its investments. This will include screening procedures for categorizing projects based on ADB Safeguards Policy Statement (2009) requirements to exclude investments having impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation The environment and social due diligence will include an assessment of the investee companies' stakeholder engagement activities.
Timetable for assistance design, processing and implementation
Concept Clearance 29 Mar 2017
Credit Committee Meeting -
Approval 25 Aug 2017
Last PDS Update 13 Oct 2017

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
OrbiMed Asia Partners III: Report and Recommendation of the President Reports and Recommendations of the President Aug 2017
OrbiMed Asia Partners III: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jun 2017

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.