Vita Genomics in talks with potential buyers: executive

Vita Genomics in talks with potential buyers: executive
By Crystal Hsu  /  Staff reporter


Vita Genomics Inc (賽亞基因科技), Taiwan’s largest genomics-based biotechnological and biopharmaceutical company, is in talks with potential buyers eyeing the company’s unique business model, a senior company executive said.

The development came after the New Taipei-based company announced plans to forge partnerships between testing facilities and hospitals aimed at growing mutual clientele and profits, Vita Genomics general manager Eddy Hsieh (謝春成) said.

Hsieh joined Vita Genomics in October 2013 when it was in the red and saw the company into profit last year.

Hsieh said he plans to build Vita Genomics into the healthcare industry’s “7-Eleven,” — the nation’s largest convenience store chain with more than 3,000 outlets.

“Some Taiwanese firms approached us with a view to acquiring Vita Genomics, attracted by its business potential,” Hsieh said.

He refused to name the interested parties for fear of sinking the deals prematurely except to say that they are in the technology sector.

Under Hsieh’s leadership, Vita Genomics is seeking the integration of the companies in its supply chain, including genomics testing facilities, pathology-testing laboratories and clinics.

There are more than 8,000 clinics in the nation and Vita Genomics aims to enter an alliance with at least 5,000 of them in the next three years, allowing them to overcome their inability to perform tests, Hsieh said.

That would give the company the top position in the industry with a 50 percent market share, he said, adding there are no competitors on the horizon.

However, integration is not an easy process, as many clinics prefer to maintain the “status quo,” Hsieh said, adding that like traditional grocery stores, they will be forced out of the market, if they reject strategic alliances.

The company would agree to acquisition bids that might help accelerate the integration, Hsieh said.

Vita Genomics has a market value of NT$3.2 billion (US$101.32 million) after the company booked NT$103 million in net income last year, or NT$2.37 per share, Hsieh said.

The company is in the process of increasing its capital by NT$800 million — from NT$460 million — and it is slated to list on the Emerging Stock Market in June and trade shares on the over-the-counter GRETAI Securities Market next year, Hsieh said.

“The capital increase is virtually completed as venture capital funds at home and overseas have lent their support,” Hsieh said.

China Development Financial Holding Corp (中華開發金控), Transglobe Life Insurance Co (全球人壽) and government-owned National Development Fund (國發基金) have contributed to the boost in capital, Hsieh said.


sorce: Taipei Times


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