After floating a biotech affiliate to the Hong Kong Stock Exchange, Chinese conglomerate Fosun has marched deeper into the health care sector by setting up an international investment alliance consisting of 11 venture capital firms.
On Tuesday, the company announced the establishment of the Fosun Global Healthcare Innovation Investment Alliance, which will share capital, research, and other health-related resources in a bid to foster innovation and spur the application of frontier technologies such as stem-cell therapy, according to an official release.
The 11 capital firms include health care-specific funds like London-listed Arix Bioscience and Boston-based Flare Capital Partners; funds operated by affiliates of research institutions like UC Berkeley; and Fosun’s own investment arms including its InnoStar venture.
Chen Qiyu, chairman at Fosun’s pharmaceutical arm, told reporters that Fosun will play the role of a “partner” in the alliance, adding that research and health care-related projects will be “completely” led by members that have the expertise and desire to further engage with China’s fast-growing industries and massive markets.
Fosun declined to comment on how the fund will address the potential impacts of China-U.S. trade tensions on the company’s overseas investment and project operations. In May, Fosun executive Kevin Xie said the company was considering limiting investment in U.S. projects and focusing instead on emerging markets like India, due to increasing U.S. regulatory concerns.