City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics...
Transcript of City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics...
![Page 1: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/1.jpg)
17 May 2018
City Fertility: A Cross-border
PartnershipPresented by David Nathan
Chairman, City Fertility
![Page 2: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/2.jpg)
17 May 2018
Brief history of City Fertility
Beginning
• Launched in 2003 in Brisbane with 1 clinician and 1 embryologist
• Initial strategic plan was to become the largest fertility care
provider in Brisbane
Today
• One of Australia’s largest IVF groups with 40+ doctors, 150
employees and 8 clinic centres including Brisbane, Melbourne,
Sydney and the Gold Coast
![Page 3: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/3.jpg)
17 May 2018
What we looked like in 2016-7
• Local market shares by state
ranging from 2.5% to 10%
• 40 clinicians
• 4th largest player in Australia
• Proprietary sub-brands for
niche service areas:SA
QLD
NSW
VIC
Adelaide Clinic
Brisbane CBD Clinic
Brisbane South Clinic
Gold Coast Clinic
Sydney Liverpool Clinic
Melbourne North Clinic
Melbourne CBD Clinic
Sydney CBD Clinic
![Page 4: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/4.jpg)
17 May 2018
Why we explored an outside investor
• Strong 12-year growth track record, but:
❑ Changing domestic landscape for care delivery
❑ Growing need to look beyond Australia for
international best practice
❑ Greater competition from large “corporatised”
competitors
❑ Access to new and future technological advances
❑ Need to invest to compete
![Page 5: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/5.jpg)
17 May 2018
Investor search process
• Engaged PwC to explore investor options:
❑ International IVF players
❑ Domestic and international healthcare groups
❑ Domestic and international private equity
![Page 6: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/6.jpg)
17 May 2018
Our investor criteria
• Domestic and Asian growth
• Medical leadership
• Reputation
• Approach to management
• Cultural compatibility
• Transaction experience
• Synergies
![Page 7: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/7.jpg)
17 May 2018
Responses
• 100+ international and domestic organisations expressed interest
• Strong international interest:
❑ China
❑ United States
❑ New Zealand
❑ Spain
❑ United Kingdom
❑ India
❑ South Korea
![Page 8: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/8.jpg)
17 May 2018
Outcome
• Selected a consortium led by CHA Healthcare (CHA) and
Singapore Medical Group (SMG)
• CHA as lead investor and majority shareholder of combined 65%
stake
• Unique structure to preserve ongoing equity ownership and
participation by existing doctors and management
• Deal completed in 100 days (April 2018)
• Began PMI early to maximise operational and cultural familiarity
![Page 9: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/9.jpg)
17 May 2018
Why CHA-SMG?
Competencies
• CHA’s international reach with operations in Korea, Japan,
Singapore and the US
• Strong history of international research leadership
• Complementary premium healthcare segments including stem cell
treatments, bio-banking, anti-ageing and cosmetics
• Global scale with more than 30,000 IVF cases / 9,000 deliveries /
14 general and specialty hospitals treating 2.5m patients annually
![Page 10: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/10.jpg)
17 May 2018
Why CHA-SMG? (cont’d)
Synergies
• Corporate capability and compatibility
• Similar growth aspirations
• Global reputation
• Key medical drivers
❑ Best-of-breed use of technology
❑ Quality of their clinician team
❑ Our key belief that research drives success and CHA undertaking over
300 international fertility and stem cell research trials annually
❑ Pregnancy rates accepted as a fundamental driver of success
![Page 11: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/11.jpg)
17 May 2018
The journey so far
• We are more attractive to clinicians and patients alike
❑ Updated strategies around marketing and consumer experience
• Stronger corporate and cultural synergies
❑ Patient experience and outcomes as the main priority – growth and profits will follow
❑ Redefine the conventional concepts of “success targets” in Australia
• Enhanced access to global health partnerships and suppliers
❑ Leverage to develop R&D partnerships with leading Australian universities and
researchers
❑ Adding advanced new technologies
• Stronger business analytics and technological platforms
❑ New perspectives on business metrics
❑ Building new data analytic tools
![Page 12: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/12.jpg)
17 May 2018
Driving CFC evolution
Marketing Example
• New logo, branding and consumer proposition
• Emphases on CFC’s key points of differentiation
• Specialised services for international and ethnic cohorts
• Mobile-enabled and social media savvy
(Old CFC online marketing)
![Page 13: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/13.jpg)
17 May 2018
Marketing example: impact
0
50
100
150
200
250
300
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Jul-1
5A
ug-1
5S
ep-1
5O
ct-
15
Nov-1
5D
ec-1
5Jan
-16
Fe
b-1
6M
ar-
16
Ap
r-16
Ma
y-1
6Jun
-16
Jul-1
6A
ug-1
6S
ep-1
6O
ct-
16
Nov-1
6D
ec-1
6Jan
-17
Fe
b-1
7M
ar-
17
Ap
r-17
Ma
y-1
7Jun
-17
Jul-1
7A
ug-1
7S
ep-1
7O
ct-
17
Nov-1
7D
ec-1
7Jan
-18
Fe
b-1
8M
ar-
18
Ap
r-18
Ma
y-1
8Jun
-18
Jul-1
8A
ug-1
8S
ep-1
8O
ct-
18
Nov-1
8D
ec-1
8Jan
-19
Fe
b-1
9M
ar-
19
Ap
r-19
Ma
y-1
9Jun
-19
Jul-1
9A
ug-1
9S
ep-1
9
FY 15-16 FY 16-17 FY 17-18 FY 18-19 FYI 19-20
No.
of A
ppoin
tments
No.
of E
nquirie
s
Month
CFC Group Enquiries and Specialist Appointments Jul 2015 - Sept 2019
Enquiries CFCGroup
Appts CFC Group
Post-Signing Increase in Volume
![Page 14: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/14.jpg)
17 May 2018
Technical collaboration
• Joint conferences in Gold Coast and Thailand attended by more
than 800 participants
• Exchange program for lab specialists
• Joint review of new technologies from Australia and Korea
![Page 15: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/15.jpg)
Re-positioning for the future• CFC’s Australian Flagship Clinic to be officially opened on 21
November at Gateway at Circular Quay, Sydney
• Developed Australia’s most advanced and modern IVF Centre
• Dual Clean Room Laboratories system
• Dual dedicated day theatre complex
• Design collaboration between Australia, Korea, United States and
Singapore to ensure optimal patient treatment experience
![Page 16: City Fertility: A Cross-border Partnership · treatments, bio-banking, anti-ageing and cosmetics • Global scale with more than 30,000 IVF cases / 9,000 deliveries / 14 general and](https://reader034.fdocuments.net/reader034/viewer/2022050512/5f9cdf101ee82d1ece1221c4/html5/thumbnails/16.jpg)
17 May 2018
Summary
✓ Found a partner with healthcare leadership beyond just IVF
✓ Compatibility of skills and visions
✓ Long-term wins over short-term
✓ New modes of thinking about old problems
✓ Constantly strengthening our foundations for future growth
✓ Bring together the best of Australia and Korea to seek out new
international opportunities