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Health & Biotech
Southeast Asia is presenting as a strong business opportunity for ASX health stocks with a rising aging population, growing middle class and greater demand for quality health goods and services.
There will be more than 100 million people aged 65 and older in Southeast Asia by 2040, according to Australia’s Department of Foreign Affairs and Trade (DFAT).
“As the region grows more prosperous, there will be growing demand for higher-quality medical goods and services,” DFAT said.
“As demographics and trends shift towards greater uptake of health goods and services, there will be further trade and investment opportunities for Australian and Southeast Asian businesses in healthcare.”
On the ASX, several healthcare companies are recognising the growth potential of Southeast Asia. Here’s some we’ve noticed.
The genomic life science company announced in July it had started selling EAORON branded products in Vietnam. A burgeoning middle class Vietnam presents a lucrative opportunity to expand its footprint in Asia.
Along with having more than 50 EZZ-branded products, EZZ has distribution rights to the EAORON brand of skin care products to pharmacies, supermarkets and specialist retailers in a number of countries, including Australia and New Zealand.
Chairman Glenn Cross told Stockhead 16 EAORON products have been registered in Vietnam including the brand’s best-selling EAORON Hyaluronic Acid Glutathione Essence Face Mask.
“EZZ is excited by the opportunities in the Southeast Asian market, driven by its large and growing population, as well as the increasing disposable income of households across the region,” he said.
“Our recent launch of the EAORON skincare line in Vietnam, in partnership with the Guardian retail chain, marks an important milestone in our regional expansion.”
Cross said its recently announced sponsorship of the Australian Open will also enable us to connect with Southeast Asian consumers, where tennis is gaining popularity, further strengthening its brand presence in the vibrant market.
RCE is tackling the global health problem of antibiotic-resistant superbugs and emerging viral pathogens with its new class of synthetic anti-infectives.
In February, RCE announced it had signed a MoU with PT Etana Biotechnologies Indonesia to research, develop, distribute and commercialise a first-in-class therapeutic with broad-spectrum anti-infective capabilities.
Etana is an Indonesian biopharmaceutical company that researches, manufactures and markets biological therapies for the Southeast Asian market.
RCE said Indonesia was the gateway to the 10 ASEAN member states, covering a population of 670 million people.
“The global health challenge of antimicrobial resistance is a pressing issue on the world stage,” Indonesian Minister of Health Budi Sadikin said when the collaboration was announced.
RCE CEO James Graham said the collaboration between RCE and Etana signified the Australian and Indonesian Governments’ shared commitment to advancing public health, fostering innovation, and addressing the global challenge of AMR in the Asia Pacific region.
“Indonesia welcomes collaborative initiatives and supports efforts to combat antimicrobial resistance, including the development of innovative therapeutics for infectious diseases,” he said.
RCE is preparing to undertake a registration Phase 3 diabetic foot infection (DFI) clinical trial, intended to start late 2024.
RDI said 11% of Indonesian have diabetes, one of the highest prevalences in the world, and making patient populations readily available to focus on significant unmet medical needs, such as the treatment of DFIs.
“With a total population of 8.5m Diabetes Mellitus patients in Indonesia, the potential of bringing a new treatment solution for diabetic foot infections is much needed,” he said.
The regenerative medicine company which is developing products for the repair of a variety of bone and soft tissue injuries is also working to grow it’s footprint in Southeast Asia.
After gaining traction in the US, EU/UK and Australia, where it has regulatory approval, and recently obtaining approval in Canada, the company is anticipating Singaporean regulatory approval within 6-12 months for Striate+.
Striate+ is a collagen membrane designed to support dental guided bone and tissue regeneration procedures. It’s designed to improve clinical outcomes by providing a strong barrier that aids in the regeneration of bone and soft tissue around the implant site.
OCC said it was also working with exclusive global distribution partner BioHorizons to achieve further Striate+ regulatory approvals into multiple new markets.
The company is also advancing the global rollout of its other technology Remplir – a collagen wrap used for peripheral nerve repair, which has been approved in Australia and New Zealand.
Regulatory approval in Singapore is anticipated within six months and US FDA approval is expected within nine months. OCC said a regulatory application for Remplir was also planned for Thailand, among other markets.
The Australian and Singaporean based medical technology company specialises in the development of 3D-printed bioresorbable implants for neurosurgical, orthopaedic, and maxillofacial procedures, aiding natural bone healing.
OSX earlier this year announced it had secured market approval for its orthopaedic products in Singapore and Vietnam.
The company had obtained regulatory clearance from Singapore’s Health Sciences Authority (HSA) and Vietnam’s Department of Medical Equipment and Construction (DMEC) for aXOpore, which includes a suite of off-the-shelf and customisable orthopaedic products.
HSA and DMEC clearance positions Osteopore for high-value complex bone reconstruction procedures as well as general bone grafting procedures.
OSX CEO and executive Dr Lim Yujing told Stockhead Southeast Asia had become an important market for the company, which had developed several key partnerships in the region.
“The Southeast Asian region, although challenging due to different cultures and languages, can present meaningful business opportunities,” he said.
“This is due to their cost-competitiveness in the region whilst maintaining a high quality of care.
“For Osteopore, we have seen significant business opportunities in Vietnam, Singapore and the Philippines, and do recognise potential growth areas in other countries in the region such as Thailand, Indonesia, and Malaysia.”
Yujin said it was important to understand the local business environment of each country as they are different, and adapt Osteopore’s strategy accordingly.
CEO of the health and wellness consumer goods company Sunny Liang told Stockhead Jatcorp sees significant potential in the Southeast Asian market, building on the solid foundation of our success in other parts of the Asian region, including China.
“We are currently distributing our products in both Singapore and Vietnam and are excited by the opportunities to expand our presence in these two markets, as well as explore new geographies across the region,” he said.
“Our participation in the VitaFoods Expo in Bangkok over the weekend was particularly encouraging, as we saw significant interest in our leading range of lactoferrin-enriched functional food products.
“Southeast Asia presents a valuable opportunity for Jatcorp’s continued growth, and we are committed to driving innovation and expanding our reach to meet the evolving needs of consumers in this dynamic region.”
At Stockhead, we tell it like it is. While EZZ Life Science, Recce Pharmaceuticals and Orthocell are Stockhead advertisers, the company did not sponsor this article.
Health & Biotech
Health & Biotech
Health & Biotech
