 "Novo invests in Manipal hospitals as it aims to expand Asia footprint")
Novo Holdings, the controlling shareholder of Danish drugmaker Novo Nordisk, said on Tuesday it was investing in Indian private hospital chain Manipal Hospitals, as it seeks to tap into growing market potential in Asia.
"It (the investment) represents our commitment towards filling the gap between the enormous demand and underserved healthcare infrastructure in India," Novo Holdings said in a statement.
The Danish holding company, which invests in life science companies and had assets of 108 billion euros ($115.86 billion) at the end of 2022, did not disclose further detail on the size of the investment, but said it was its largest in Asia to date.
Novo Holdings' key markets in the region are India, South-East Asia and China, where it opened an office in Shanghai last year.
Manipal Hospitals has 33 hospitals across India, with around 6 million patients annually, Novo Holdings said.
"A rising middle class, paired with an increased appreciation for advanced medical facilities and quality healthcare services, has driven an uptick in demand for private hospital care in the country," it said.
More From This Section
"Other factors include the expansion of health insurance coverage and the sophistication of medical technology adopted at private institutions."
Novo Holdings, which is owned by Novo Nordisk Foundation, has 77% of voting shares in Novo Nordisk, the maker of blockbuster obesity drug Wegovy and diabetes treatment Ozempic.
On Monday, it announced it was buying Catalent, a manufacturing subcontractor for the weight-loss drug, for $16.5 billion to help Novo Nordisk meet soaring demand. The drugmaker expects the deal to boost Wegovy output from 2026.
A top official at Novo Nordisk in September 2023 told Reuters the drugmaker aims to bring Wegovy to India in 2026, after securing regulatory approvals and ensuring it has enough supply to meet demand.
Novo Holdings CEO Kasim Kutay told Reuters in October last year that the firm would hire more people, potentially open more offices and expand its geographic presence as its wealth grows.