Spin-off to form largest cardiology business secures local investment

MedTech News: The largest provider of integrated cancer care globally and cardiology services in Australia has secured a local investment partner for its spin-off cardiology services network ‘CardioCo’.

With Adamantem Capital’s new investment, CardioCo will demerge from the GenesisCare network upon completion of the transaction to become Australia’s leading standalone cardiology services group.

This expands Adamantem’s investments in healthcare, which includes Australian community-based healthcare provider Zenitas, and New Zealand aged care group Heritage Lifecare.

GenesisCare Global Chief Executive Officer and Founder, Dan Collins, said “Our cardiology team is the best in Australia and has a long track record of achieving world-class clinical outcomes for patients. I am grateful for their exceptional clinical standards and continuous efforts to improve patient access and foster innovation.

“This divestment is the natural next step for both CardioCo and GenesisCare. It will fuel CardioCo’s next phase of growth and continue the exceptional progress in clinical trials, government partnerships, and pioneering novel therapies. For GenesisCare, we can focus our efforts solely on our integrated oncology program and sharing our best practice and innovation developments across all markets. Adamantem Capital is an excellent partner for doctors, management, and the business, and I wish the new combination every success,” he said.

CardioCo is Australia’s only national provider of cardiology and sleep services, with a network of more than 100 private practices and a team of 100+ cardiologists and respiratory physicians, and 700+ technicians and support staff. CardioCo’s doctors and support teams deliver cardiology services to more than 200,000 patients each year across metropolitan, regional, and remote Australia.

Adamantem’s Managing Director, Angus Stuart, said “Adamantem embraces partnership opportunities and sees great promise in the relationship with CardioCo’s doctors and management. CardioCo provides best-in-class cardiology and sleep services in Australia with national scale, complex care treatments, and superior patient outcomes. As Australia’s population ages, CardioCo’s scale and expertise gives it a critical role of ensuring premium heart care reaches a larger number of patients.

“We support the ambition of CardioCo’s doctors, teams, and management to expand in existing and new service areas to become the leading healthcare organisation to plan, promote, and enhance heart health in the Australian population, and beyond,” said Mr Stuart.

CardioCo’s Chief Executive Officer and cardiologist, Dr David O’Donnell, said “We are delighted to welcome Adamantem Capital as our new investment partner as CardioCo enters an exciting new stage of growth and innovation as a standalone cardiology provider.

“Adamantem shares our mission to reduce the impact of heart disease in Australia, through the direct high-quality comprehensive care we provide to our patients, but also for Australians as a whole, through education, research partnerships, and preventative medicine. With Adamantem, we can invest in technology, doctors, and services to become the first-choice heart healthcare provider for healthcare professionals, industry partners, and people looking to enhance their heart health.”

CardioCo uses a data-driven operating model, leveraging analytics and technology, with a program of advanced diagnostics and innovation initiatives to achieve the best possible life outcomes for Australian patients.

The demerger will see GenesisCare become one of the world’s largest dedicated oncology networks, with funds from the divestment to be directed towards its U.S. integration, innovation programs, and expansion of its integrated cancer care services in Australia, Europe, and the U.S.

Heart care is a major focus for healthcare providers, as around 1.2 million Australians have one or more heart or vascular conditions, and cardiovascular disease causes 27% of deaths in Australia. Given Australia’s ageing population, cardiology services are expected to become increasingly vital.

Coinciding with the transaction, CardioCo is expected to extend its footprint with the acquisition of a thriving cardiology practice in Sydney. CardioCo will also form a strategic partnership with Australia’s leading provider of outsourced cardiac diagnostic and remote monitoring services, CardioNexus, as part of its long-term plan to invest in end-to-end diagnostic cardiac services.

“Our growing Sydney presence and new strategic partnership with CardioNexus will allow us to reach even more patients with our high-quality comprehensive model of care proven to achieve superior clinical outcomes,” said Dr O’Donnell.