Alpha IVF Group Bhd group managing director Datuk Dr Colin Lee Soon Soo said the group will place emphasis on health tourism as majority of its patients consists of foreign patients. —LOW LAY PHON/The Star
PETALING JAYA: Alpha IVF Group Bhd is confident of maintaining a steady growth trajectory going forward, supported by its upcoming listing on the ACE Market of Bursa Malaysia and sound business strategies.
With decades of experience in the fertility industry, group managing director Datuk Dr Colin Lee Soon Soo said Alpha IVFs two-pronged business strategy encompasses growing organically within its existing fertility centres, as well as expanding its reach to nearby countries in South-East Asia.
The approach is in line with Alpha IVFs listing on the ACE Market of Bursa Malaysia, as Lee explained that part of the proceeds will be allocated towards the group’s future growth strategies.
Out of RM116.6mil to be raised from its initial public offering (IPO) exercise, RM72.8mil will be utilised for the establishment of new in vitro fertilisation (IVF) centres, satellite clinics and sales representative offices, while RM15.7mil will be allocated for the expansion and upgrading of existing specialist centres, facilities and offices.
Lee told StarBiz that as of today, three of its existing fertility centres – the Alpha IVF and Women’s Specialists/Alpha Fertility Centre in Kota Damansara, Genesis IVF and Women’s Specialist in Penang and Alpha IVF Centre and Alpha Women’s Specialists Centre in Singapore, have yet to reach full capacity.
The fertility centre in Kota Damansara was built to accommodate 4,000 IVF cases a year, however, at the moment it is only handling about 1,600 cases a year.
On that note, Lee believes the number can be increased by another 150%, driven by the efficiency, cost-effectiveness and emotional support provided to patients.
Similarly, its facility in Penang was built to accommodate slightly over 2,000 cases a year, but the group is currently handling about 1,200 to 1,300 cases a year. Lee believes the case load can grow by another 80%.
As for its Singapore centre, Lee said it has the potential to grow three-fold from its current numbers of a little below 300 cases a year.
Lee further explained that the group is blessed in Malaysia as foreign patients account for most of its patients, which he said is particularly due to Alpha IVFs success rates of about 82.9%, advanced technology as well as being more cost-friendly compared with other nearby countries.
“Whether we have cheaper IVF centres, higher pregnancy rates translate to a better value-for-money for our patients. This is why in Malaysia, we are placing more emphasis on health-tourism,” he said.
As for Alpha IVFs expansion plans to other nearby countries, Lee said the group will be expanding its wings to Indonesia by setting up additional IVF specialist centres and four satellite clinics in major cities.
He said, given logistics demands, IVF procedures are often drawn out and require multiple trips, which would be costly and could have a financial toll on patients as well as their families.
Lee said the patients will only undergo major procedures in its main centres, while the preliminary sessions and aftercare post-pregnancy will take place in the satellite clinics within their own countries.
“This is what we understand over the last few decades after looking after foreign patients and these are some of their many preferences. By expanding overseas, we will be able to increase the pool of patients that want to do treatments in Malaysia, but can opt for local clinics to facilitate the pre and post procedure,” he stated.
Alpha IVF will also continue to innovate to stay on the forefront of innovation in the fertility field, as Lee believes innovation is one of the group’s core values.
“Innovating is one thing, but on the other hand we often improve on what has already been implemented as we are very much in contact with what is the latest in the field of IVF,” he said.
Infiltrating the market as well as every aspect of current life, Lee said the application of artificial intelligence (AI) technology within the field of IVF is an area that Alpha IVF pioneers.
He said that, as of today, the group has at least five to six international collaborations in the field of AI in IVF and that Alpha IVF will continue to introduce more AI platforms in the near future.
In terms of the market demand, Lee said that in Malaysia, the IVF industry is still a sunrise industry with low penetration.
With roughly a population of 33 million in Malaysia, the the specialist only handles about 9,000 cases a year at present, when it could handle 40,000 IVF cycles.
“Malaysia’s IVF industry is still very underpenetrated and there will be an upside of three times before the market becomes saturated,” he said, adding he believes Malaysia, Indonesia and other nearby countries have the potential to grow.
He said that taking into account a country’s economic status is also essential, because expansion would falter in the event demand is not met with affordability.
“With the lack of facilities, higher demand and higher affordability, we can see that there is a huge upside to the IVF market in countries like Indonesia.
Globally, Lee said the IVF will continue to grow and the number of people seeking IVF treatments will continue to increase, especially on the back of improving technology.
