DeltaHealth Secures Over $100 Million in Strategic Investment Led by Swire Pacific

VCBeat has learned that DeltaHealth, a foreign-invested innovative healthcare group specializing in cardiovascular care, has officially announced the completion of its latest funding round, which exceeded USD 100 million. The round was led by Swire Pacific Limited, a Hong Kong-listed company, with continued support from existing investor F-Prime Capital.

Upon completion of the financing, Swire Corporation Limited will become the second-largest investor in Deda Medical. Deda Medical will leverage the funds raised to accelerate the implementation of its cardiovascular strategy and create new business highlights.

DeltaHealth was established with investment from STO Capital, a global venture capital firm backed by Fidelity International. In response to China’s healthcare reforms, DeltaHealth works in close collaboration with the public healthcare system. Today, DeltaHealth has built an integrated hospital network centered on cardiovascular care, including Shanghai DeltaHealth Hospital and its outpatient facility, Dexi Clinic.

After five years in operation, Shanghai DeltaHealth Hospital has established a solid foundation in the field of cardiovascular care and is actively expanding into other surgical specialties, striving to build a Center of Excellence for Surgery in China. This July, Dexi Clinic will upgrade and relocate to the Gubei community in the core area of Changning District, aiming to provide enhanced medical services to both local and expatriate patients.

Deda Medical continues to experience rapid development. According to Shenkang’s full-year business data report for 2020, Deda Hospital performed 294 aortic surgeries throughout the year, ranking second in Shanghai (including public hospitals). Recently, Deda Hospital successfully completed Shanghai’s first transcatheter aortic valve replacement (TAVR) procedure using the Sapien 3 system (the latest generation of valve replacement systems), as well as China’s first clinical application of the COMET™ pressure guidewire. In 2018, Deda Medical was approved for inclusion in the National Medical Insurance System, enabling it to better serve a broader patient population at affordable prices.

David Hoidal, CEO of DeltaHealth, stated, “Like Starvest Capital, Swire is a long-term investor that values quality, operational excellence, and a commitment to service, brand, and reputation—all of which are central to DeltaHealth’s core philosophy. I believe that as Swire continues to expand its investments in the healthcare sector, it will create synergies with DeltaHealth. Furthermore, Swire’s strong foundation in real estate development will provide significant support for the future Phase II construction of our hospital.”

Professor Sun Lizhong, Chief Medical Officer of Deda Healthcare and Medical Director of Shanghai Deda Hospital, added, “I am deeply gratified that Taikoo has become our core partner as Deda Healthcare moves forward with its further development. With this funding, we can expand our clinical team, launch new specialty services such as thoracic oncology, and ultimately broaden our service scope to better serve patients both locally and across China.”

Guy Bradley, Chairman of Swire Pacific Limited, stated, “We are delighted to partner with Sidewalk Capital to further develop Deda Medical into a premier medical institution in China’s cardiovascular field. Under the leadership of Dr. Sun Lizhong, Deda Medical’s distinguished clinical team is committed to integrating domestic and international best practices to deliver healthcare services of exceptional standards to patients. Swire’s strategy is to identify institutions that provide high-quality medical services tailored to the middle class within major city clusters where we already have a presence, and to seek collaboration opportunities. As Shanghai and the Yangtze River Delta region constitute one of the key growth areas for the entire Group (including Swire Properties), our investment in Deda Medical aligns with our strategic objectives.”

Daniel Auerbach, Senior Managing Partner and Global Head of Venture Capital at Fidelity International (F-Prime Capital) and Chairman of Dada Medical, stated: “F-Prime Capital takes a long-term view, committed to supporting companies in setting industry benchmarks and generating positive social impact. In recent years, the transformative changes Dada Medical has brought to China’s healthcare service model have been widely recognized, significantly improving the lives of numerous patients and their families, which fills us with immense pride. We look forward to continuing our support for Dada Medical in realizing our shared vision of consistently delivering high-level, high-quality, and affordable medical services to the Chinese market.”

As an innovative healthcare service provider, DeltaHealth was established with investment from F-Prime Capital, a global venture capital firm backed by Fidelity Investments. DeltaHealth is committed to building an integrated network of hospitals and outpatient clinics in China specializing in cardiovascular care. Additionally, DeltaHealth serves as the clinical strategic partner in China for NewYork-Presbyterian/Columbia University Irving Medical Center’s Heart Center.

Swire Pacific Limited (Stock Codes: 00019/00087) is a listed company in Hong Kong with a diversified portfolio spanning five operating divisions: Property, Aviation, Beverages, Marine Services, and Trading & Industrial. The Group’s businesses are primarily focused on the Greater China region, where Swire has been established for more than 150 years. Swire Pacific Limited is also a substantial shareholder of two other Hong Kong-listed companies: Swire Properties and Cathay Pacific Airways.

Fidelity International’s private equity arm, F-Prime Capital, is a global self-managed investment institution backed by the Fidelity Group. Leveraging its unique capital structure, F-Prime Capital flexibly deploys capital to support innovative companies in disrupting or leading their markets, helping entrepreneurs realize their ambitions. With investment teams across China, Japan, India, Europe, and the United States, F-Prime Capital manages over $8 billion in assets. The firm focuses on early- and growth-stage investments in the healthcare and technology innovation sectors, having invested in more than 300 high-growth companies. With over 25 years of venture capital experience in China, F-Prime Capital has invested in more than 110 companies in the healthcare and technology innovation fields.