Varian and Gaodao Investment Forge Strategic Partnership to Advance China's Oncology Diagnosis and Treatment Ecosystem

On November 17, Varian, a global leader in medical technology, and Gaoda Investment announced the signing of a strategic cooperation agreement. Both parties are committed to integrating their global resources across the oncology industry chain and engaging in comprehensive, in-depth collaboration within the healthcare investment sector. With a particular focus on oncology institutions, they will facilitate exchanges and cooperation in areas such as the operation of diagnostic and treatment facilities, international advanced oncology drugs, medical devices, and therapeutic equipment, thereby helping to enhance the capabilities of China’s entire oncology diagnosis and treatment industry chain.

Varian is a global leader in providing medical equipment and treatment solutions for cancer therapy, with over 7,800 radiotherapy systems installed worldwide, making it the current frontrunner in the global oncology radiation therapy industry. GaoDa Investment is a fund platform and professional private equity fund manager established in China by the Queensland Investment Corporation (QIC), Australia’s sovereign wealth fund. Its investments in the healthcare sector focus on technology-driven oncology diagnostics and treatments, with portfolio companies including ICON Group, Australia’s fastest-growing cancer care provider.

Previously, the recently released report of the 19th National Congress of the Communist Party of China reiterated the “Healthy China” strategy, emphasizing the prevention and control of major diseases and specifically proposing to “support privately-run medical institutions and develop the health industry.” According to the Outline of the Healthy China 2030 Plan issued in October last year, by 2030, chronic disease health management covering the entire population across the full life cycle will be achieved, and the overall five-year cancer survival rate will increase by 15%.

According to a recent research report, it is estimated that there were approximately 4.3 million new cancer cases and over 2.8 million cancer-related deaths in China in 2015. Meanwhile, the five-year survival rate for cancer patients in China was only slightly above 30%, less than half of that in the United States. In this regard, industry experts point out that this is mainly due to the low rates of early diagnosis and treatment of tumors, the scarcity of effective screening technologies, and the high cost of screening. Additionally, cancer treatment in China still faces issues such as non-standardized diagnosis and treatment practices, low levels of healthcare services at the primary care level, and significant disparities in the quality of care.

“China’s current healthcare system is still far from meeting the urgent needs of its vast cancer patient population; there is a long and arduous journey ahead for medical services,” said Dr. Zhang Xiao, Global Vice President and President of Greater China at Varian, at the signing ceremony held that day.

As leaders in their respective fields, Varian and Gauda Investment aim to join forces to create a new landscape in China’s cancer rehabilitation sector.

“Varian is expanding from a provider of radiotherapy treatment solutions toward comprehensive management across the entire cancer care continuum. During its more than 30 years of operations in China, it has accumulated extensive resources across the oncology industry chain, valuable development experience, and a substantial user base,” said Dr. Zhang Xiao. “We aim to help China build a more complete ecosystem encompassing cancer prevention, diagnosis, treatment, and rehabilitation.”

“Varian’s development direction in China aligns closely with that of Gaoda Investment. We believe that this powerful partnership will undoubtedly deliver a better user experience for the vast number of cancer patients in China. In the future, we will not only bring the Chinese market to the global stage but also introduce globally leading technologies and expertise to China, creating a win-win scenario for parties in China, the United States, and Australia,” stated Yang Haofeng, Chairman of Gaoda Investment’s Investment Committee. He remarked, “Revolutionary changes in China will occur in the fields of technology and healthcare. The strong public demand for medical services, coupled with policy support from the government and the use of technology to enhance efficiency, will be crucial to the development and reform of the entire healthcare industry.”

It is precisely based on these judgments that Gaoda Investment has been intensively expanding its footprint in the healthcare sector in recent years, particularly in the field of oncology diagnosis and treatment. In May this year, Gaoda Investment, together with Australia’s sovereign wealth fund QIC and Goldman Sachs Group, jointly acquired ICON Group. As Australia’s largest integrated oncology hospital chain, ICON Group provides comprehensive, high-end cancer care services, including radiation oncology, day oncology hospitals, pharmacy, and chemotherapy compounding. The group has also successfully expanded its operations to Singapore, China, and New Zealand.

Yang Haofeng revealed, “In the future, Gaoda Investment will further strengthen its layout across the entire industrial chain of oncology diagnosis and treatment. Key areas requiring research include early screening and detection of cancer, postoperative rehabilitation and wellness, and the integration of cancer diagnosis and treatment with elderly care, given that cancer is increasingly prevalent as an age-related disease. We also aim to leverage domestic medical and educational resources to provide higher-quality, more professional healthcare services, with a particular focus on cultivating skilled nursing personnel. Additionally, we plan to introduce advanced foreign oncology drugs, medical devices, and diagnostic technologies into China for localization.”

“Gaoda Investment’s entry into the Chinese market also reflects the confidence and emphasis that Australia’s Queensland Investment Corporation (QIC) and other European and American investors place on China,” said Yang Haofeng.

Marcus Simpson, Global Head of Private Equity at the Queensland Investment Corporation (QIC), also stated, “QIC is the only Australian sovereign wealth fund that collaborates with foreign capital and private enterprises. Beyond traditional infrastructure sectors, we also focus on high-growth private companies, particularly in healthcare, education, food, and tourism—areas we believe are of significant importance to the Chinese public. We aim to bring advanced diagnostic and therapeutic expertise and development experience, akin to that of ICON, to China, achieving a triple-win outcome.”