ShareHope invests in Consusafe, Taiwan’s largest surgical-dressings supplier, to develop medical supply channel.

ShareHope invests in Consusafe, Taiwan’s largest surgical-dressings supplier, to develop medical supply channel.

ShareHope (8403-TW), the only medical supporting and logistic company listed in Taiwan formally announced it took a 46% participation in Consusafe, hence grabbing a controlling stake in a major surgical-dressing supply channel nationwide. According to ShareHope, this investment will strengthen the company’s core business, diversify market channels, lower purchasing cost, and enhance its R&D capability. All these benefits add value to ShareHope’s branding image and created a new milestone for its health supply group purchasing channel integration.

Founded in 1980, Consusafe is GMP, CE, and FDA certified, and is Taiwan’s largest manufacturer of surgical dressing and health supplies. It is licensed to produce and sell over 600 items, including surgical dressing supplies, respiratory care supplies, and anesthesia tubing supplies. Consusafe also operates a biotechnology platform that conducts new product R&D.

According to Dr. Fred Yang, board chairman of ShareHope, the scope of ShareHope businesses includes medical device leasing, health checkup services, medical specialty services, healthcare management and consulting, and medication and health supply group purchasing which currently accounts for 80% of its revenues. The company is running an innovative business model, and is expanding its market from northern Taiwan to the rest of the country and mainland China. Its customers include hospitals, pharmacies, and clinics. ShareHope is also introducing several new products to Taiwan, establishing a testing platform, and promoting SmartCare technology.

ShareHope’s competitive advantage comes from its three departments: health logistics, health management (health checkups), and medical specialty. The health logistics services provide customers with an efficient, tailor made, low-cost, and simplified group purchasing process. The health management department will benefit from the opportunity presented by the influx of more tourists from China. The medical specialty department hopes to provide medical device leasing and specialty services to 378 mid to small size hospitals it currently targets.

ShareHope considers M&A as expanding strategy. Revenue expected to increase 20-30%.

Based on market forecast, the after-tax earnings per share of the newly listed company ShareHope (8403) is expected to be 2.4 dollar, and its annual revenue growth rate is projected to be 20-30%. ShareHope is considering domestic mergers and acquisitions to expand its medication and supply logistics, and clinic operation businesses. With regard to development in China, it is hoping to establish a strategic partnership with companies that share complementary goals.

Group purchasing of medication and health supply logistics accounted for over 80% of

ShareHope’s revenues last year. The rest of its revenues came from health checkup business (11-12%) and medical specialty service (6-7%). Earnings after tax for the first 3 quarters were 80.32 million dollars, or 1.9 dollars per share.
ShareHopes’ revenue in January reached a historic record of 130 million dollars due to a spike in customers’ orders before the Chinese New Year. Medication and health supply logistics generated revenues significantly higher than their average the previous year. Earlier this month, ShareHope signed a contract with the Ten-Chen Healthcare Network, a Taoyuan based healthcare supplier, adding another customer to its group purchasing platform.

Ten-Chen Healthcare Network, which is viewed as a typical healthcare provider in the Taoyuan area, operates two hospitals and will be an important contributor to ShareHope’s revenues in the future. Meanwhile, the Department of Health latest policy to recommend patients refill prescriptions for chronic medication from local pharmacies rather than from hospitals provides an incentive for local pharmacies to join the group purchasing platform offered by ShareHope. As indicated by ShareHope, the company is considering more M&A to broaden its channels among pharmacies and clinics.

ShareHope also hopes for a boost to its health checkup business from an expected influx of tourists and patients from the Chinese mainland. However the degree by which this will impact on ShareHope’s business is highly dependent on a loosening of the policies that still restrict the travel of Chinese nationals in Taiwan. Health checkup services provided by ShareHope now account for 30% of all health check up services in the Taoyuan, Hsin-Chu, and Miao-Li areas.

Share-Hope Medicine to work with Penghu Hospital and cooperate on cardiovascular medicine services.

Share-Hope Medicine (8403) officially announced that it will cooperate with Peng-Hu Hospital (operated by the Department of Health) in providing cardiovascular medicine services to the hospital.

Based on an internal information source, the cooperation agreement also calls for other large-scale projects in developing phases. The news is expected to boost the profits of Share-Hope Medicine since the profit margin for medical specialty services exceeds 30%, or twice the business average. Last year, medical specialty services accounted for 6.17% of Share-Hope Medicine revenues, a figure which according to a consensus forecast is set to grow to 10% thanks to the increase in profit margin associated with this type of services (33.5% last year).

The project, officially launched March 1st 2011, is Share-Hope’s first medical specialty joint venture, and its first operation site outside the Taiwan mainland. According to Share-Hope Medicine, the venture with Penghu hospital and other future large-scale projects will be beneficial to the company and contribute to its profitability.

Ninety thousand people live in Peng-Hu County, an archipelago of more than 60 islands located in the Taiwan Straits. Medical resources have historically been limited and Peng-Hu Hospital has received less support from the Department of Health than similar hospitals in Taiwan. Emergency and critical care patients are invariably evacuated to Taiwan’s main-island, which delays the treatment of these patients. According to the census of the Department of Health, total medical expenses related to cardiovascular diseases were around 170 million last year in the county. Nevertheless, there isn’t currently adequate cardiovascular specialty equipment on the islands. Penghu Hospital is the largest hospital in Peng-Hu County, and this cooperation agreement with ShareHope will make it the only hospital in the county to provide cardiovascular medical care. With this agreement Share Hope wants to strengthen the availability and quality of healthcare for the population and visitors of Penghu.

A leading brand of integrated medical supporting service, ShareHope Medicine was officially listed on the stock market March 1st 2011.

Beating of the gong at the celebration ceremony attended by President Yang Min-Sheng, Board Chairman Fred Yang, CEO of GreTai Securities Market Mr. Wu Yu-Qun, and CEO of Capital Securities Corporation Mr. Chow Kang-Ji.





Board Chairman Dr. Fred Yang made a speech