Ping An to launch new AI-driven healthcare joint ventures in China

Ping An, China's largest insurer by market size, has signed agreements with Shionogi & Co to launch joint ventures in Shanghai and Hong Kong, with a total investment of $466.4 million, to develop a data-driven drug discovery and development platform.

The joint ventures will become development centers for drugs that Shionogi is developing globally with a focus on infectious disease and central nervous system (CNS) disorders.

Using big data and artificial intelligence (AI) analytical technology, Ping An's joint ventures will establish a research and development platform to create high-value-added, innovative medicines and healthcare services and customised solutions.

Ping An-Shionogi Co. will be registered in Shanghai, with a total investment of RMB2.94 billion ($420 million). Ping An Life Insurance Company of China intends to invest RMB1.44 billion, with equity accounting for 49 percent, while Shionogi (Hong Kong) will invest RMB1.5 billion, with equity accounting for 51 percent.

Ping An-Shionogi (Hong Kong) will be registered in Hong Kong, with a total investment of HKD360 million ($46.44 million). Tutum Japan Healthcare, an indirect subsidiary of Ping An, intends to invest HKD176 million, with equity accounting for 49 percent, while Shionogi (Hong Kong) will invest HKD184 million, with equity accounting for 51 percent.

Both transactions will be coordinated by China Ping An Insurance Overseas (Holdings).

Ping An said the initiative is aimed at raising the level of health and medical care service in China by leveraging advanced technology.

John Keller, senior executive officer, SVP, global business division, Shionogi said: "We are excited to have completed the joint venture agreement and to now be prepared to make a full-scale start. Ping An Group has a world-leading platform and AI technology in the healthcare field, in addition to their strength in the insurance & financial field. By fusing Ping An's strengths with Shionogi's strengths as a drug discovery-oriented pharmaceutical company in this joint venture, we will work together to provide total healthcare solutions for the benefit of patients, families, healthcare professionals and society as early as possible. We believe this alliance represents a very significant step toward our goal of creating new platforms to shape the future of healthcare."