Philab allots $150M to establish clinics, invest in genomics

PHILAB HOLDINGS CORP. has set a spending plan of $150 million for 2018, as it targets to launch satellite clinics across the country and to invest more into genomics.

“It depends on how much we could raise...but I would probably put around $150 million for this year,” Philab Chairman and Chief Executive Officer Hector Thomas A. Navasero told reporters after a press conference for its partnership with genetics firm Veritas Genetics last Friday in Makati City.

A total of $100 million of the capital expenditure budget will be used for the development of up to 60 satellite clinics in the country, which can serve primary care to patients unable to immediately reach hospitals.

Mr. Navasero noted these clinics, to be called Philsat, will be attached to potentially larger hospitals.

“They’ll be modern, equipped with the most modern medicine, technology. We can put them up to reduce the costs of health care across the country,” Mr. Navasero said, adding they are studying to establish the first one in Tacloban, Leyte.

For the clinics, the company will be using prefabricated buildings, which will allow them to set up one in 30 to 45 days. A fully equipped clinic could cost up to $1 million each.

In the long term, the company is targeting up to 1,000 satellite clinics in the country.

The Philab executive said the company is looking to partner with the Department of Health and the Philippine Health Insurance Corp., since these are the government entities in charge of putting up such facilities for the people.

Meanwhile, the remaining $50 million will be used to invest in companies with interests in genomics. Genomics is defined as “an emerging medical discipline that involves using genomic information about an individual as part of their clinical care.”

This would complement Philab’s recent partnership with United States-based Veritas Genetics. Philab will be managing Veritas’ operations in the Asia-Pacific region, after investing an initial P500 million into the firm. With this, Veritas will build a facility in Clark, Pampanga that will oversee genetics testing in the Asia-Pacific region, excluding China.

“There will be $50 million for the genetics, pharmaceuticals… Specialized medicine I think is where we’re going,” Mr. Navasero said.

Asked how the capex program will be funded, Mr. Navasero said the company has around $55 million in commitments from several investors.

“We have commitments from specific investors, family funds that are very keen on what we’re doing,” he said.

To raise the remaining amount needed for the capex, Mr. Navasero said he is willing to bring down his ownership in the firm to as low as 30-40%.

A regulatory filing shows Mr. Navasero held a total of 1.70 billion shares in Philab as of Dec. 31, 2017, equivalent to an 82.436% stake in the company.

“I know it’s dilutive, but we’re not here to keep control of our large company… So we hopefully will raise $100 to $150 million,” Mr. Navasero said. —