Ayala makes big healthcare investment as it seeks next growth driver

MANILA  -Ayala Corp. is making its largest bet on healthcare this year, with plans to invest P7 billion in expansion and new acquisitions as the country’s oldest conglomerate searches for the next “big engine of growth”.

Paolo Borromeo, CEO of Ayala Healthcare Holdings Inc. (AC Health), said on Friday the company was in the midst of ramping up all business segments, including pharmacy chain Generika, clinics and hospitals, and digital services.

The Zobel family conglomerate, which has invested about P10 billion in healthcare since AC Health was established in 2015, also wants to widen its patient reach by four times to over 24 million Filipinos by 2030, Borromeo said.

“In 2023 and beyond, we at AC Health remain committed to growing our services across our network in scaling up both organically and inorganically as we work toward our goal of improving healthcare for all,” Borromeo said during a media briefing after Ayala’s annual stockholders’ meeting on Friday.

This comes ahead of the company’s brand refresh of its hospital and clinic group to “Healthway Medical Network”.

For the rest of the year, Borromeo said AC Health would open three new multi-specialty centers in Cebu, Cagayan de Oro and Davao, bringing its network to 15 outpatient centers and 200 corporate branches.

In September, the company will open the Healthway Cancer Care Hospital in Taguig, marking the establishment of the country’s first dedicated cancer hospital.

Pharmacy chain Generika is also on track to reach 800 outlets this year from 750 branches in 2022.

“Our goal is to reach 1,000 drugstores by 2025 and ensure all Filipinos throughout the county have access to affordable quality generic medicines,” Borromeo said.

The company plans to import more generic drugs this year for oncology, women’s health, and primary care, he noted.

AC Health and Ayala’s telecommunications arm Globe also launched the KonsultaMD “super-app” for digital health services with over 2.5 million subscribers.

Borromeo said AC Health booked its first ever profit of P229 million last year. Earnings before interest, taxes, depreciation, and amortization, a measure of profitability, jumped 30 percent to P1.1 billion in 2022.

During the briefing, Ayala CEO Cezar “Bong” Consing said they were investing in emerging businesses to develop new growth drivers after Globe and renewable energy firm ACEN. Ayala, which also owns Ayala Land Inc. and Bank of the Philippine Islands, is allocating P264 billion for capital expenditures this year.

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