Unlocking and Accelerating Growth:
Healthcare and Life Sciences in Asia Pacific
Across Asia Pacific, healthcare and life sciences breakthroughs offer exciting opportunities to meet patient needs and create value, but rising costs and market uncertainty also apply significant pressure to operations and balance sheets.
These dual conditions represent a chance for innovators, investors and healthcare & life sciences businesses to protect, unlock and accelerate growth through both top line and bottom line considerations.
- Chapters
- descriptions off, selected
- default, selected
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
End of dialog window.
From governments to private investors, big pharma to biotechs, organizations inside and outside the region are reimagining healthcare and life sciences to improve access, outcomes and affordability. This requires capital investment, collaboration and change at levels rarely seen before.
In our digital campaign, we explore this dynamic through two main themes and identify six key market opportunities. Additionally, you can explore legal insights and practical takeaways to help you unlock and protect growth –including cross-border deals, commercial collaborations, executing effective corporate divestitures and carve-outs, trade compliance best practice, IP protection, data protection, takeover bids, supply chain due diligence, preparing for ESG-driven litigation, and more.
Healthcare Transformation
Improving the Top Line
A desire to expand healthcare access, quality and affortability is driving transformation-focussed investment
READ MORE
Operational Resilience
Protecting the Bottom Line
A drive for cost savings and flexible solutions is generating resilience-driven investment opportunities.
READ MORE
Healthcare Transformation
Why Asia Pacific is a magnet for innovation and investment
Three unique dynamics define healthcare in the region, which reinforce the need to expand access, quality and affordability:
Low density
of skilled healthcare professionals
Rapidly aging
population
As demand continues to surge, the supply of trained medical professionals and related industries fall short, leading to increasing pressure to deliver more with less.
Low density
of skilled healthcare professionals
Growing group of digital natives with spending power
Growing group of digital natives with spending power
Rapidly aging
population
The rising spending power and volume of the middles class will place increasing demand on digitally enabled end-to-end solutions to proactively manage their health and wellbeing.
Low density
of skilled healthcare professionals
Growing group of digital natives with spending power
Rapidly aging
population
Rapidly aging population
The rising ageing population is placing additional strain on healthcare systems already feeling the effects of increasing chronic conditions and labor shortages.
Low density
of skilled healthcare professionals
Growing group of digital natives with spending power
What is driving healthcare transformation and who are the key players?
1
Two key centers of transformation exist.
How and where assessment, treatment and monitoring are conducted
Digital therapeutics companies are delivering increasingly sophisticated and connected devices that empower patients to monitor their own conditions and provide real-time custom health recommendations.
Hospital-at-home care providers are increasingly meeting patient needs flexibly, quickly and efficiently outside of clinical settings, to improve patient outcomes while reducing costs.
AI technology platforms are accelerating the discovery of new molecules and antibodies, and enabling prediction and personalization in cutting edge devices.
Biotech and pharmaceutical companies are powering advancements in cell therapies, synthetic biology, gene sequencing and editing.
Next generation telehealth players are building a wider ecosystem of online and offline providers that provide patients with personalized tools for behavior change and self-monitoring.
2
The devices and drugs being developed to support new delivery models
Three key market opportunities for healthcare transformation
Attracting investment
for critical innovation
Accelerating the shift to personalized and preventative medicine through AI
People are willing spend more to have greater access to healthcare; and quality healthcare at that. Through the peak of COVID-19, people have become more willing to seek medical attention to allay risks, which means that preventative health, health screenings and wellness services are also in higher demand.
Alex Boulton, Partner & Healthcare and Life Sciences SEA Practice Leader, Bain & Company
Governments across the Asia Pacific region have identified the power of AI to help address national healthcare challenges and turbocharge innovation, investment and economic growth. Favorable government policies have been and will remain key to growth.
Yee Chung Seck, Partner, Vietnam
Getting data security right is paramount for continued transformation of health.
Ren Jun Lim, Principal, Singapore
Collaboration between data providers, developers, public institutions, life sciences and healthcare providers is common in digital health. But in entering collaborations, companies can overlook the treatment of intellectual property, know-how, trade secrets and confidential information.
Vivian Wu, Partner, Baker McKenzie FenXun
FenXun established a joint operation office with Baker McKenzie in China as Baker McKenzie FenXun, which was approved by the Shanghai Justice Bureau in 2015.
Hospital-at-home programs offer financial advantages for healthcare institutions due to the reduction in required bed space. Although they must invest in the technological infrastructure to allow 24/7 remote monitoring of patients. In Singapore, hospital-at-home programs have been largely offered by public hospitals, but it’s likely similar programs will be increasingly offered by private healthcare institutions, which will impact payment models and investment patterns.
Isabella Liu, Partner, Hong Kong
1 of 4
As AI is integrated into drug and patient pathways, risks and uncertainties are emerging. Regulation is evolving piecemeal behind the technology, data privacy, accuracy and bias are significant concerns, and existing frameworks around IP and competition are being challenged by the new. Managing these issues will be critical to realizing safe and sustainable growth.
Isabella Liu, Partner, Hong Kong
Governments across the Asia Pacific region have identified the power of AI to help address national healthcare challenges and turbocharge innovation, investment and economic growth. Favorable government policies have been and will remain key to growth.
Yee Chung Seck, Partner, Vietnam
Creating safe and effective AI products can be an expensive and complex venture, particularly in AI drug discovery, where IP is diverse – from datasets and algorithms to molecules and antibodies. As such, the commercial protection of these innovative technologies has become a pivotal issue.
Isabella Liu, Partner, Hong Kong
As the Philippines undertakes reforms to provide universal healthcare, there is a real need for private sector investments in healthcare services and facilities, such as clinics, hospitals, specialty centers and laboratories, to scale up access for the wider public.
Christina Macasaet-Acaban, Partner, Quisumbing Torres*, Philippines
*Quisumbing Torres is a member firm of Baker McKenzie
With spending constraints curtailing further transformation, governments are increasingly looking to the private sector investment to fill the gap. As a result, private capital investors including the superannuation, pension and infrastructure funds, private equity and venture capital firms and high net worth individuals are driving much of the healthcare and life sciences transactional activity in Asia Pacific.
Tracy Wut, Managing Partner, China
Filing obligations across multiple jurisdictions can be triggered easily and filings need to be made quickly to keep to deal timetables. Good planning can prevent delays as most regimes around the world are mandatory and require parties to standstill until formal clearance.
Stephen Crosswell, Partner, Hong Kong
We are seeing strong interest in Asia by global pharmaceuticals and biotechs, including billion dollar plus global deals involving platform technologies and regional deals targeting specific Asian markets.
Oren Livne, Partner, the USA
Regulators are weighing regulatory approaches to AI, with different jurisdictions fevering different regimes.
Numerous jurisdictions are enforcing against failures to file. Identify these regulatory hurdles as early as possible in transaction discussions so you can incorporate these considerations into your transaction strategy, budgets and deal timetable.
Protecting IP and managing liability to avoid disputes should be high on the agenda, particularly as collaboration between digital players, big pharmaceuticals
and public institutions grows.
Thailand is emerging as a key manufacturing, logistics and research hub for healthcare and life sciences. Apart from its strategic location as a gateway to Asia Pacific, skilled workforce and supportive government policies, Thailand is a destination for high potential growth, serving both local and international demand for medical tourism because of our well-established, high-quality hospitals and medical facilities, many of which are expanding internationally. As part of the blueprint to drive the Thai economy forward via digital transformation, the government is granting premium incentives to foreign investors to promote advanced technological development in targeted S-Curve industries, including medical and medical robotics.
Panyavith (Taro) Preechabhan, Partner, Thailand
It’s encouraging that foreign investors continue to invest in Vietnam's manufacturing sector. These investments reflect the broader trend of shifts in companies diversifying their supply chain and manufacturing operations beyond China and into Southeast Asian countries. This is driven in part by geopolitical dynamics and global trade reform among major markets. Vietnam is well-positioned in terms of geography and political stability as it deepens its role in global supply chains, and remains cost competitive whilst also focusing on up-skilling the workforce.
Yee Chung Seck, Partner, Vietnam
It's important to remember that intellectual property is often the key value driver in collaborations and partnerships. To unlock further value, there must be
a meeting of minds on the creation, protection and exploitation of future IP. Ensure you have robust protection, including that knowhow, inventions and patents are secure.
Elisabeth White, Partner and Chair, Asia Pacific Healthcare and Life Sciences, Australia
Map supply chain risk. Use data to build a picture of actual and potential risks across your supply chain, including environmental issues such as medical waste and pollution arising from processing APIs, and social considerations like healthcare equity and access to affordable health. Identify hotspots and mission critical issues that could disrupt supply or lead to reputational issues and disputes.
Anne Petterd, Partner, Australia
Information on environmental performance, employment and working conditions in supply chains can be difficult to uncover, but it is critical to overall transparency. Use digital tools to access the best possible data on key aspects of ESG and create a platform to aggregate and organize material for ease of reference. Additionally, measure impact and communicate progress to build accountability. Integrate supply chain ESG performance into global reports.
Anne Petterd, Partner, Australia
When it comes to ESG governance, reporting ad regulatory compliance, companies must address contractual risk. The best approach for avoiding action is to confirm in advance that a company can live up to specific duties and obligations before agreeing to them. It is also advisable to agree on liability limitations to make the remaining risk manageable.
Celeste Ang, Principal, Singapore
Private equity interest in healthcare assets, particularly core plus’ assets, remains strong in Asia Pacific. Some Asian healthcare focused private equity firms are engaged in capital raising for new funds focused on investing in the healthcare sector in southeast Asia. Moreover, continuation funds are being deployed by some private equity firms to roll over the ownership of existing well performing healthcare assets.
Zhang Hong, Partner, Baker McKenzie FenXun
FenXun established a joint operation office with Baker McKenzie
in China as Baker McKenzie FenXun, which was approved by the Shanghai Justice Bureau in 2015.
A variety of strategies are being adopted by companies to ensure operational resilience, including M&A. Some are shedding ‘non-core’ business units to focus on building specialty platforms. Others are using M&A to acquire expertise and R&D for innovative treatments and patient experience solutions. An analysis of how to maximize the advantages of technology and digital capabilities is also fueling resilience-driven activity.
Kate Jefferson, Partner, Australia
Competition for prize assets will increase demand for creative financing strategies from PE players. Private credit arrangements, joint ventures that include PE and strategic player and club deals, where multiple
PE buyers pool capital, are becoming more common.
Safari Watanabe, Partner, Japan
In Japan, special support available to global companies conducting R&D projects in Japan, including fundraising assistance for small and medium sized businesses, faster patent examinations, residency applications and review periods on new investments.
Safari Watanabe, Partner, Japan
○
The Eastern Economic Corridor (EEC), an area-based development initiative, also offers efficient infrastructure, connectivity and incentives to attract knowledge-based industries, including biosciences, artificial intelligence and robotics into Thailand.
○
The government has participated in international medical and wellness exhibitions, simplified the process of getting visas for medical purposes and developed marketing campaigns to attract medical tourism.
- Thailand’s logistics infrastructure and comprehensive cold chain network is also suited to the specific needs of the life sciences and healthcare industry. The government continues to make improvements to resilience and sustainability, including a recent grant from the US Trade and Development Agency (USTDA), which will accelerate more sustainable distribution routes like road to rail.
●
Thailand’s strategic location as a gateway to Asia Pacific, skilled workforce and supportive government policies have seen the value of foreign investment rise by 43 per cent to USD 11.5 billion for the first nine months of 2023. This reflects investors' confidence in Thailand's infrastructure, supply chains and long-term growth potential.
The Thailand 4.0 growth model identifies biopharmaceuticals, bio-economy and medical equipment as key industries for development, and the Thai government actively promotes investment in manufacturing, logistics and medical facilities as part of its plan to become a leading medical hub:
●
○
The Board of Investment (BOI) provides exemptions from corporate income tax to certain industries, including those involved in manufacturing and logistics, and has approved incentives to support the adjustment of existing production lines to manufacture medical devices or parts, including exemptions from import duties. This can significantly lower the cost of setting up or expanding manufacturing facilities.
○
Working to strengthen its international trade relations. The EU-Vietnam Free Trade Agreement ensures the use of international standards, practices, and guidelines developed for pharmaceutical products and medical devices, to help Vietnamese products gain wider acceptance in international markets and boost exports.
Improving the regulatory framework for the pharmaceutical sector to ensure high quality domestic production, robust IP protection and licensing will also support growth. Vietnam benefits from its membership to ASEAN and coordinated efforts to harmonize regulation across the region.
○
- Vietnam is transforming into a global manufacturing hub, benefiting from the “China plus one” diversification strategy favored by global companies.
- While the country has one of the most rapidly growing markets in Asia for pharmaceutical products, it still relies heavily on imports for its needs.
- To address this issue, the Vietnamese government has been taking action:
- Actively promoting FDI in the healthcare sector. The government offers various incentives such as tax breaks and simplified administrative procedures to attract foreign investors.Actively promoting FDI in the healthcare sector. The government offers various incentives such as tax breaks and simplified administrative procedures to attract foreign investors.
Carve-outs, spin-offs and take-private deals are increasingly important features of the market,
as corporates address balance sheet vulnerabilities and redeploy capital for growth.
Minimizing disruptions by having rigorous planning vis-à-vis IP protection, data security strategies, governance frameworks and regulatory obligations will be key.
Asia Pacific is a global production powerhouse, and outsourced manufacturing and distribution is of huge strategic importance to global healthcare and life sciences companies in the region.
Understanding contractual terms and liabilities, particularly in relation to ESG, managing IP risk is key to maintaining resilience in third party agreements.
Trade compliance is one of the most complex and high stakes legal consideration for global players in Asia Pacific, particularly as scrutiny of tariff classification, customs valuations, duties and product origin verification rises.
Getting up to speed on what is driving audit activity and taking a proactive, localized approach will promote operational resilience.
Transparency and accountability are key trends for corporates globally. Having a clear view of ESG obligations and performance, operational risks and litigation hotspots will help ensure disclosures are made appropriately.
Additionally, leadership commitment, corporate governance and a robust ESG compliance program are crucial to success.
Key Contacts
Anti-Trust & Competition
International Trade
& Compliance
Dispute Resolution
Transactional (M&A)
Transactional (M&A) cont.
Transactional (M&A) cont.
Intellectual Property
Yee Chung Seck
Partner, Vietnam
+84 28 3520 2633
yeechung.seck
@bakermckenzie.com
Tracy Wut
Managing Partner, China
+852 2846 1619
tracy.wut
@bakermckenzie.com
Christina Macasaet-Acaban
Partner, the Philippines
+63 2 8819 4947
christina.macasaet-acaban
@quisumbingtorres.com
Cahyani (Icay) Endahayu
Partner, Indonesia
+62 21 2960 8515
cahyani.endahayu
@hhplawfirm.com
Kevin Wang
Partner, Taiwan
+886 2 2715 7322
kevin.wang
@bakermckenzie.com
Kate Jefferson
Partner, Australia
+61 2 8922 5302
kate.jefferson
@bakermckenzie.com
Stephen Crosswell
Partner, Hong Kong
+852 2846 2599
stephen.crosswell
@bakermckenzie.com
Panyavith (Taro) Preechabhan
Partner, Thailand
+66 26662824#4360
panyavith.preechabhan
@bakermckenzie.com
Andrew Martin
Principal, Singapore
+65 6434 2507
andrew.martin
@bakermckenzie.com
Anne Petterd
Partner, Australia
+61 2 8922 5888
anne.petterd
@bakermckenzie.com
Zhang Hong
Partner, Baker McKenzie FenXun
+ 86 21 6105 8588
hong.zhang
@bakermckenziefenxun.com
Vivian Wu
Partner, Baker McKenzie FenXun
+86 10 6535 3860
vivian.wu
@bakermckenziefenxun.com
David McCredie
Partner, Australia
+61 2 8922 5358
david.mccredie
@bakermckenzie.com
Safari Watanabe
Partner, Japan
+81 3 6271 9480
safari.watanabe
@bakermckenzie.com
Celeste Ang
Principal, Singapore
+65 6434 2753
celeste.ang
@bakermckenzie.com
Elisabeth White
Partner, Australia
+61 2 8922 5386
elisabeth.white
@bakermckenzie.com
Isabella Liu
Partner, Hong Kong
+852 2846 1689
isabella.liu
@bakermckenzie.com
Elisabeth White
Partner, Australia
+61 2 8922 5386
elisabeth.white
@bakermckenzie.com
Kherk Ying Chew
Partner, Malaysia
+603 2298 7933
kherkying.chew
@wongpartners.com
Ren Jun Lim
Principal, Singapore
+65 6434 2721
ren.jun.lim
@bakermckenzie.com
FenXun established a joint operation office with Baker McKenzie in China as Baker McKenzie FenXun, which was approved by the Shanghai Justice Bureau in 2015.
FenXun established a joint operation office with Baker McKenzie in China as Baker McKenzie FenXun, which was approved by the Shanghai Justice Bureau in 2015.