CK Life Sciences expands scope with investment

CK Life Sciences (0775) said its investment along with CK Hutchison (0001) in early cancer detection device developer Pharus cost each of the firms US$5.5 million (HK$43 million) and will help expand the scope of its business.

While CK Life Sciences will take part in the management and liaison of Pharus, CKH will mainly offer financial support, the former's vice-president and chief executive Alan Yu Ying-choi said in a press conference yesterday.

Yu said the investment would offer synergies with its existing operations in pharmaceuticals research but it is too early to tell when it will become profitable. It all depends on the progress of work and the results of clinical trials in the next few years, he pointed out, adding that it should take a shorter time to obtain regulatory approval for medical devices than for drugs.

The global market for liquid biopsies -- tests that are used by Pharus to detect cancer -- is expected to grow to US$26 billion in 2030, and around 40 percent of this is expected to be from the sales of test kits and consumables as well as provision of testing services, Yu said.

The deal has the potential for an attractive return and capital appreciation and CK Life Sciences is also keeping an eye on different companies, such as pharmaceuticals and testing, to assess the prospects of each firm for future investment, he added.

The two CK firms announced the deal a day ago and each will hold an 18.33 percent stake in Pharus through subsidiaries.