Acquisitions, Joint Ventures, and Licensing for Medical Products in Asia
Let us help your medical device or pharmaceutical company form key partnerships in Asia to enhance your presence in the Asian medical markets.
Pacific Bridge Medical provides the following services to assist clients with acquisitions, joint ventures, and licensing in Asia:
- Identify and qualify prospective partners through our strong network of contacts in Asia;
- Prepare and present the necessary information and materials to the prospective partner candidates;
- Arrange introductions between the client and appropriate partner candidates;
- Accompany the client to meetings with the partner candidates and assist with negotiations on the client’s behalf;
- Provide guidance on agreement terms, pricing, and other related issues;
- Provide extensive on-the-ground due diligence;
- Help the client negotiate an agreement with a partner;
- Follow up after the agreement is signed and provide guidance during the implementation phase.
We provide these services in twelve major Asian medical markets: China, Japan, Korea, India, Singapore, Hong Kong, Indonesia, Malaysia, Philippines, Taiwan, Thailand, and Vietnam.
More and more Western medical companies and investors are interested in acquiring medical device businesses in Asia. Acquisition in Asia will vary depending on the rules, regulations, and cultures of each country. While you may purchase a company in Japan via a P/E ratio, acquisitions in China may be based on net asset value plus a premium. Successfully acquiring medical assets at an appropriate price in Asia requires plenty of due diligence. Pacific Bridge Medical can help Western medical companies and investors in the Asian medical markets with target identification, on-the-ground due diligence, and negotiations in the local language of each Asian country.
Joint venture structures, regulations, and opportunities will vary in each Asian country. For example, when negotiating a joint venture in China, it is often difficult to determine who is in charge on the Chinese side of the table as government officials, industry representatives, factory executives, and others may be involved in the negotiations. These different parties on the Chinese side may have competing interests. In addition, Chinese documentation is often very vague, and negotiations can drag on much longer than one would expect. In the 1990s, most Chinese joint ventures were 50/50 deals. Today, joint venture deals with an 80/20 or even 90/10 ownership structure (with the foreign partner holding the majority) are more common.
Licensing of medical products will vary according to the Asian market you are doing business in. For example, in Japan in the early to mid-1990s, many Japanese licensing deals with Western biotech companies were concluded without conducting sufficient due diligence, and as a result, there were many failures. In recent years, however, Japanese investors are more sophisticated and more due diligence is being done. Japanese firms today are likely to invest only in later stage deals.
If you are looking for expert assistance with your acquisition, joint venture, or licensing issues in Asia, please contact our expert consultants today to discuss your specific needs.
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