SINGAPORE: Healthcare services provider Zuellig Pharma on Wednesday (Apr 5) launched its first innovation centre, Zuellig Health Solutions (ZHS), in Singapore and plans to invest over S$50 million over the next five years.
The centre, launched with the support of Singapore’s Economic Development Board (EDB), will be located at Zuellig Pharma’s current office along Scotts Road. So far, the company has spent nearly S$15 million to set up the new facility.
With the launch, the company is on the lookout for more than 50 Singapore-based healthcare, technology and data specialists.
On why it chose Singapore as the location for its new venture, CEO John Davison said: “We see many of our clients in the pharmaceutical and consumer health sector (such as) GlaxoSmithKline and AstraZeneca here in Singapore so it is about being close to our client base.”
“And if you look at the ecosystem for digital technologies and big data, Singapore is the leading centre. So for me, Singapore is the obvious choice,” he added, in an interview with Channel NewsAsia.
Being the company’s “first and only” innovation centre, the ZHS will be the centre for all development work in data, digital and disease management solutions that will help doctors develop more effective treatment plans, support patients with chronic conditions and help payers manage healthcare costs.
Singapore will also be the testbed for solutions such as chat bots, live nurses and health apps before being rolled out to the rest of Asia, according to Mr Maarten Kelder, the firm’s head of strategy & solutions.
Mr Davison added that the new centre will focus on addressing existing gaps in Asia’s healthcare sector, including access to care.
He raised statistics from the World Health Organisation, which estimated that nearly 130 million people in Southeast Asia do not have access to essential healthcare services. Through its innovation centre, the company hopes to extend its reach into the second- and third-tier cities in the region.
“Our role has always been to provide distribution of healthcare products and we are aiming to do that in the outer regions of these Asian countries,” Mr Davison explained. “Take Vietnam for example, the local industry has always been centred on Ho Chi Minh, Hanoi or Danang. If you live in the rural areas, you will not have access to higher-end medicine from abroad… but the way we want to build our supply chain is to get our products out to the tier-2 and tier-3 cities.”
In Singapore, the ZHS has entered into a Memorandum of Understanding (MOU) with the National Healthcare Group to develop predictive models for early health screening, as well as analysis of treatment costs and quality, using data analytics.
It also plans to release a mobile app to help patients manage chronic diseases in the second half of 2017 in Singapore.
Zuellig Pharma had a panel discussion on digital solutions for healthcare at the launch. Panelists include National Healthcare Group’s chief medical information officer Dr Eric Wong, Zuellig Pharma’s head of strategy & solutions Maarten Kelder and Chairman of EDB Beh Swan Gin. (Photo: Zuellig Pharma)
SHIFTING HQ FROM HONG KONG TO SINGAPORE
The launch of Zuellig’s Pharma’s new innovation centre follows the company’s recent decision to relocate its headquarters from Hong Kong to Singapore.
Citing factors such as being close to its client base and Singapore’s strength in data analytics, Mr Davison said: “The company has been in Singapore since 1939, so Singapore is not a strange place for us. We have an almost billion-dollar business here.”
A divestment of a China-based business was an additional “push factor” for the relocation from Hong Kong to Singapore, according to the CEO. “We used to have a business in China which we divested about 8 to 9 years ago and it made the reason to stay near China less vital. We still have a growing business in Hong Kong but the rationale for moving to Singapore balanced the other reasons (to stay).”
Zuellig Pharma, founded in 1922, now has more than 800 employees in Singapore.
EDB’s chairman Beh Swan Gin, who was present at the launch, described the healthcare services provider’s decision to establish both its headquarters and innovation centre in Singapore as a “strong endorsement” for the country.
“Companies need to develop a much deeper understanding of the evolving healthcare demands and requirements, and gain insights of their markets here to guide their strategies. So we believe that with their global headquarters here, Zuellig Pharma will have an effective control tower to help its clients monitor and navigate this diverse region,” said Dr Beh.
He added: “Another advantage which is often overlooked is that by locating in Singapore, in this case Zuellig Pharma’s management team, (it) will be located very close to the decision makers of many of its key clients… This offers opportunities for partnerships and supplier relationships which would not be so easily established if your clients are located (hours-long) flights away.”
