Fleury and Beneficência Portuguesa create an oncology company with an investment of R$680 million

The medical diagnostics company Fleury announced this Tuesday that it has formed a partnership with Atlântica Hospitais, indirectly controlled by Bradesco, and with Beneficência Portuguesa for the preventive treatment of cancer.

Together, the partners are expected to invest around 678 million reais in the project over the next five years. The resources will be applied in oncology clinics and more complex treatment centers across the country, said Fleury, explaining that the new company will have a parity association of partners.

Bradesco also controls Bradesco Diagnósticos, which in turn holds approximately 30% of Fleury.

The announcement illustrates how healthcare companies in Brazil are moving to diversify revenues, tapping into high-growth, higher-margin specialized markets, while a process of consolidation in the sector is advancing rapidly.

In addition, the Chamber of Deputies approved in February the mandatory incorporation of new treatments into health plans and insurance, including for the fight against cancer.

In March, Oncoclínicas announced the purchase of 49% of the Spanish company that researches treatments for cancer patients MEDSIR for around 32 million reais. A month earlier, he had announced the purchase of Cemise, from Sergipe, which performs MRI and CT scans.

Elfa, which distributes drugs, orthopedic and hospital products of high complexity, such as to treat cancer patients, has entered a growth rhythm in recent years through acquisitions since the entry of Patria, which holds about 85% of the capital. In recent years, there were 19 acquisitions.

In the case of Fleury, the transaction comes after the company was asked to make bolder moves of non-organic expansion out of its main market of medical diagnostics to better measure forces with large verticalized medicine groups, which were formed in the country in the last years through acquisitions such as Hapvida and Rede D’Or.

The new company of Fleury, Atlântica and BP is based on an operating model “focused on the full journey and with an emphasis on early diagnosis, use of technology and patient care, offering a form of payment based on the outcome and on the management of lives in portfolio”, said the companies without giving details.

Completion of the transaction needs approval from CADE and the Central Bank.

Source: Reuters