Adventa: To venture into Renal dialysis

Adventa Bhd expects to double revenue for the financial year ending Oct 31, 2015 (FY15) with the launch of a new business segment – the home renal dialysis business.

Its CEO Low Chin Guan told SunBiz the group is launching its dialysis business in the third quarter of FY14, which will be its main focus this year.

Adventa is involved in the distribution of hospital supplies through subsidiary Sun Healthcare Sdn Bhd, sterilisation of medical devices via Electron Beam Sdn Bhd and home renal dialysis services through Lucenxia (M) Sdn Bhd. Currently, about 60% of the group's revenue comes from Sun Healthcare, while its sterilisation business contributes the remainder.

a"What is interesting is our new dialysis business will be the flagship business of the group. In FY15, it (dialysis) should already be the (main) contributor, as the business has big potential in the country and in the region, " Low said. "We are starting in Malaysia first for the next two years, then moving on to regional countries like Thailand, Singapore, Hong Kong and Vietnam," he added, explaining that the group has a presence in these countries via its sterilisation business.

Low said the scope for Lucenxia locally and regionally is immense, considering its first mover advantage. It is understood that in Malaysia alone, there are 30,000 individuals who need dialysis daily and the process is done in dialysis centres or hospitals. Each patient spends between RM30,000 and RM40,000 a year.

"The dialysis business, together with consumables, is close to RM900 million a year. If we are able to roll out our programme correctly, we would be able to get a significant part of (the business)," Low said.

Adventa plans to introduce a cost-effective and comprehensive dialysis package to the public and private sectors where equipment, supplies, nursing care and outcome monitoring are all packaged into one. Low said such programmes will cost about the same as what each patient spends yearly (RM30,000 to RM40,000), minus additional costs such as travelling expenses.

Bernama: 24-02-2014
Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.


Post a Comment