Clearbridge Health headed for Catalist IPO

CLEARBRIDGE Health, the medtech investor formerly known as Clearbridge Accelerator, is planning an initial public offering (IPO) on the Singapore Exchange.

Clearbridge Health, which was renamed in April, lodged a draft prospectus for a listing on the Catalist board last Friday (Nov 24).

Founded by non-executive non-independent chairman Johnson Chen in 2010, Clearbridge describes itself as a healthcare company with a focus on precision medicine in Asia, including laboratory testing, diagnostics and personalised treatments.

Clearbridge Health holds equity in Clearbridge Biomedics, which developed the proprietary ClearCell FX System. This system can detect, isolate and retrieve circulating tumour cells (CTCs) from blood, paving the way for non-invasive cancer diagnosis.

Clearbridge Health also acquired Insight Medica and renamed it Clearbridge Medical Group this year. Insight Medica was founded last year by Jeremy Yee, the former CEO of Singapore-listed Cordlife Group. It owns and operates two medical clinics in Singapore and Hong Kong. Mr Yee was appointed CEO of Clearbridge Health in May.

So far, Clearbridge Health's revenue is derived solely from the provision of lab-testing services at its in-house laboratory, Sam Lab.

In the six months to June 30, Clearbridge Health's net loss widened to S$2.03 million from S$1.27 million in the same period a year earlier. Revenue in the period was S$284,000, down from S$317,000 in the same period last year owing to a decrease in the number of health-screening tests done.

Sam Lab derives about 65 per cent of revenue from Asia Health Partners.

Clearbridge Health's net cash used in operating activities in the first half of 2017 amounted to S$4.25 million.

The size of the IPO has not been announced but Clearbridge Health said that it expects operating expenses to increase in the near term after the IPO, and it cannot be certain that it will achieve profitability.

IPO proceeds will be used to expand Clearbridge's medical clinics and laboratory testing services business organically or through investments, acquisitions and joint ventures[•], the prospectus said.[/•]

Clearbridge Health's controlling shareholders are Mr Chen and QED Innovate, a vehicle for a number of investors including Mr Yee.

United Overseas Bank is the sponsor, issue manager and placement agent.