Private Equity Investment In China's Healthcare Industry: Analyses Based On Case Studies

The key point of this dissertation is that the private equity (PE) investment in Chinese healthcare industry is developing, especially very fast in 2006. PE investment can accelerate the R&D of Chinese healthcare industry. PE can help the healthcare companies to change strategy, R&D, and improve management structure. However, PE investment in Chinese healthcare industry far trails the one in USA. The investment situation for PE capital should be improved.This paper consists of four parts:The first is the introductions of concepts of private equity and status quo of Chinese healthcare industry as the basic of discussion.Part two outlines the PE investment in Chinese healthcare industry by statistic investment cases. First, the general PE statistic investment cases in healthcare industry are presented. Second, the Buyout investment statistic investment cases in healthcare industry are listed. Third, the Venture Capital investment statistic investment cases in healthcare industry are showed. Last but not least, the status quo of PE investment in Chinese healthcare industry is contrasted with the one in USA.Part three analyses one representative case: Walden International invested in Mindray Medical International Limited. The analysis shows that Venture Capital brought advanced management beside the fund to company and accelerated the R&D of company. Goldman Sachs, the Buyout Capital, brought Mindray to New York Stock Exchange.Part Four analyses another representative case: Hony Capital Limited invested in Simcere Pharmaceutical group. The analysis shows that Hony Capital Limited helped Simcere Pharmaceutical group to acquire Endu, a new medication, and brought Simcere Parmaceutical Group to New York Stock Exchange. The case analysis also presents the growth and some advantages of Chinese Local PE capital.