Moscow International Medical Cluster (MIMC)

Transcription

1 Moscow International Medical Cluster (MIMC) Global map of scientific research MIMC Source: _ Cluster roadshow_centers of Excellence slides_rus_mar07_at_v.pptx

2 Moscow International Medical Cluster (MIMC) the project on the territory of Skolkovo at the intersection of various fields of knowledge No borders Free movement and work of professionals from all over the world, use of international protocols of treatment, medicines and equipment Openness Exchange of experience and involvement of new technologies in the Russian health care system Education Main element Supporting element Educational programs in Russia for Russian doctors and nurses on the basis of leading clinics Replication Supporting element Synergy Joint work of foreign and Russian medical specialists Synergy with SKOLKOVO facilities and international cooperation Technological University Medical services Medical R&D Clusters: - Information technologies - Biomedical technologies - Energy Efficient technologies - Nuclear technologies - Space technologies and communications MIMC is located in SKOLKOVO Innovation City Moscow City Skolkovo Innovation City Kremlin ~0-0 min drive time from ~ the historical city center and downtown Skolkovo has partnerships with >70 leading international companies Skolkovo has joint project with MIT (USA) SKOLTECH University

3 SKOLKOVO Innovation City University Joint Project of Skolkovo Foundation and MIT (USA) Over 00 graduate students (Master s & PhD) Over 00 international professors Medical engineering and biotech projects are of the highest priority New building (over 0,000 sq. meters) to be launched in 08 5 Cluster layout concept the first pilot project is already under construction Specialized clinics Medical building Diagnostics and outpatient center Multi-profile hospital Finished in 08 Medtech production Apart-hotel Education center R&D center Pharma production R&D Center Infrastructure buildings Rehabilitation center Specialized clinics 6

4 The First Resident of MIMC HADASSAH Medical Organization(Israel) Key performance indicators of the pilot project A DIAGNOSTIC & OUTPATIENT CLINIC A MEDICAL CENTER WITH AN INPATIENT BLOCK (focused on oncology treatment) Clinic launch 08 Foreign medical specialists >5% Investment amount,9mus Dollars Number of Russian medical specialists to be sent to Israel for educational programs: 68 Total sq. m.,000 Medical activities planned : R&D programs planned Hospital launch 00 Foreign medical specialists >5% Investment amount -7,9MUS Dollars Number of Russian medical specialists to be sent to Israel for educational programs: 77 Total sq. m. 9,000 Moscow Government committed to invest 65 M US Dollars to CAPEX of the pilot project > 50 K clinic visits per year (incl. chemotherapy) > 0 K surgeries per year > 00 K laboratory tests per year ;. 0 years total budget;. Joint results of Clinic and Hospital after 7 years of operations comprehensive program for cancer research R&D budget is over 5 M US Dollars for 0 years Joint research collaboration with SkoltechUniversity (special MIT project in Skolkovo Innovation Center) 7 9 "Hospital of the Future" in MIMC -a joint project of Bundanghospital (South Korea) and investor Tashir Media Multidisciplinary clinic from Seoul National University Hospital Bundang Total Area м Main medical directions: Oncology, cardiology, orthopedics, rehabilitation59 коек 8 operating rooms 566 FTE medical personnel CAPEX: $5mln 8

5 MIMC offers multiple strong advantages for operators Some of MIMC advantages are unique in Russian market Value proposition "Entry point" to an appealing market Privileges at the level of a Federal Law Support from the Moscow Government Partnership opportunities 9 Medical services market has the potential for steady and profitable growth, especially in the out-of-pocket (OOP) segment "Entry point" to an appealing market The OOP segmentwill be demonstrating the highest growth rates in the medical services market The joint OOP and VMIsegment is already attractive for investors and medical services providers Russian medical services market, 06 09, T RUB. [$.B] 8% 6% 7% 70% 06 CAGR = 8.5% [8.6% in $].8 [$.6B] 6% 5% 9% 70% 09 70% "Grey" market VMI OOP Public sector CAGR.% 5.6%.5% 8.% Profitability : average EBITDA specialized clinics' EBITDA Concentrated demand for OOP and VMI: Moscow accounts for ~% of the market Favorable competitive landscape: ~7% market share of the top five players¹ No sizeable international players yet Size of the OOP and VMI market in 06 ~500 ~9% ~0% B RUB [~$7.9B]. Top five players in the OOP segment and the VMI segment ranked by revenue size in 05: Mother and Child, Medsi, GEMC. European Medical Center, AVA Peter and Scandinavia, SM-Clinic.Weighted average EBITDA margin in 05, of four large players in the Russian medical services market: Mother and Child, Medsi, GEMC. European Medical Center, and OAO Meditsina; specialized clinics' margin 8% of 'Mother and child' clinic in 05. Private (non-state) investment in commercial medicine (medical services paid out of pocket or based on VMI) Note: Public sector: public-sector employees and CMI (compulsory medical insurance). Assumed US dollar rate: 06: 65.; 07: 6.8; 08: 6.; 09: 6.9 Note: OOP out-of-pocket, VMI voluntary medical insurance Source: WHO; BMI; EIU; BusinesStat; TASS; "Investing in Private Healthcare in 06: Who, How and Why?" (Vademecum, January 5, 07), Oxford Economics 0 5

6 Moscow is by far the largest OOP and VMImedical services market in Russia, accounting for ~% "Entry point" to an appealing market Key insights % (~6B RUB, ~.5 B $) Patients from Russian regions frequently travel to Moscow and other large cities for specialized medical services Outside of Moscow, top 5 cities account for ~90 B RUB (. B $) in healthcare (~8% of total OOP and VMI market) 9% (~ B RUB, ~0.67 B $) Saint Petersburg Moscow Nizhniy Novgorod % Perm Kazan % % Surgut Tolyatti % % Rostov-on-Don % % % % Yekaterinburg % Krasnodar Samara Ufa % Omsk % Norilsk Khabarovsk % % Makhachkala % Novosibirsk % Vladivostok x% Size of the circle denotes the share of solvent demand for medical services in large cities Note: OOP out-of-pocket, VMI voluntary medical insurance; market split by regions in 06 is assumed comparable to 0-05, USD values based on Central bank of Russia exchange rate: ~65 RUB per USD.According to official statistics, Moscow population in 07 ~, M people, Moscow region ~7, M people Sources: Rosstat; BusinesStat, Business Monitor International; expert interviews MIMC will focus on out-of-pocket and VMI segments, target market size over M patients per annum "Entry point" to an appealing market Target MIMC patient profile is defined along several dimensions......according to which target MIMC audience size is + M patients per year MIMC patient's profile key dimensions quantitative metrics Target region Moscow & Moscow region (total ~0 M people in 07) Prevalence in target TAs and healthcare areas Readiness to visit the doctor # of cases per 00K of population within each selected TAs (.5K to 5.K cases per 00K people depending on TA) % of sick people attending the doctor in terms of clinic concept and curability =. Mpatients per annum Share of population who can afford services % of mass-affluent population in the region.both in- and outpatient patients, excluding pediatrics.personal income >65k RUB per month 6

7 Law 60-FZ provides unparalleled privileges for MIMC participants Privileges at the level of a Federal law Examples of main privileges Treatment protocols issued in OECD countries may be used within the MIMC without obtaining a license, which is otherwise mandatory for medical activities within the territory of Russia Federal Law 60-FZ was made with specific intention to support the MIMC Medical drugs and equipment registered in OECD are also allowed for use within the territory of the cluster with no requirement to register them in accordance with the mandatory rules existing in Russia Foreign specialists in the fields of medicine, education or R&D are allowed without restriction: no limiting quotas on invitations and job permits², education certificates of foreign specialists from OECD countries are recognized. Details are provided in the Federal Law 60-FZ. I. e. current Russian quotas on employment of foreign staff will not apply. Source: Federal Law 60-FZ, dated June 9, 05 The state supports the project at the level of Moscow Support from the Moscow Government Key elements of support Commitment to make the project a success become a link between operators and investors, eliminate bureaucratic barriers Financial support of pilot facilities on the part of the Moscow Government, potential co-financing for future facilities Allocated ~9.7B RUB (~$65M) for the development² of the MIMC project Open to discuss co-investment for future MIMC facilities Ensured favorable leasing prices forland parcels (7 RUB / $,6 per m per year) Dedicated professional team of the IMC Foundation focused on supporting operators and investors in the cluster Developed the cluster concept with support from The Boston Consulting Group Assumed US dollar rate ~59.5 RUB. In case of need. Does not include the financing committed for the leasing of land from Skolkovo Foundation and for other administrative costs. 7

8 The MIMC offers multiple opportunities to select projects for participation All the envisaged projects are in top priority TAs for Russia Partnership opportunities i Pilot projects Clinic and Diagnostic Center Multiprofile Clinic/ Specialist Center Construction of the Clinic and Diagnostic Center is already in progress, launch in Q 08 Projects in the most critical areas for Russia 5 6 Project example: a specialized clinic Cardiology Multiprofile Rehabilitation Orthopedics and Traumatology Oncology Projects in other critical areas for Russia Pulmonology Urology Gynecology Ophthalmology Childhood Diseases Endocrinology Gastroenterology Neurology Other Project example: a specialized clinic Otolaryngology MIMC operators will undergo rigorous selection under the supervision of healthcare and business experts. Mostly neurology 5 Various models of participation in the project are possible for operators and investors, IMC Foundation acting as a link Partnership opportunities Operator Investor Operator: May provide financing for its project on its own May be Russian, with a foreign operator participating as a partner Staff Standards and protocols Medicines and medical devices Building Equipment Funds for operating expenses Investor: May select operatorsfrom the options collected by the IMC Foundation, or propose its own operator Funds for operating expenses The MIMC Operator and investor: May select any options for partnering with foreign and Russian partners, respectively Russian International Land and utilities Professional team of the IMC Foundation The IMC Foundation Team Supports the participantsstarting from the moment of filing the application and later on, including marketing support to attract patient flows Allocates a personal manager to assist participants 6 8

9 Government is open for discussion about collaboration with each potential participant Partnership opportunities Investor Interests of different parties n the project Government. CAPEX reduction. Favorable leasing prices for land. Tax benefits. Administrative barriers reduction 5. Connections to utilities 6. Developed infrastructure 7. Transparent market 8. Patient flow supporting Possible area for collaboration (PPP). Transfer of medical technologies to Russia. Education provided to local doctors. R&D development and collaboration. Advanced medical service to Russian patients 5. Reduction of medical tourists outflow Operator. International expansion. Easy market entering. Financial benefits. Avoid administrative barriers 5. Collaboration with Russian healthcare 6. Transparent medical regulation from the government 7 Thank You! mimc.global +7 (95)