Prodia company continues to climb its investment portion for the digital health business line by providing capital expenditure worth US$25.8 million.
Heaptalk, Jakarta — PT Prodia Widyahusada Tbk (issuer code: PRDA) is increasingly strengthening its existence as a provider of clinical laboratory services and a network of private clinical laboratories in Indonesia.
Along with this intention, Prodia company continues to climb its investment portion for developing health digitalization by providing capital expenditure worth US$25.8 million, of which 50% is focused on the digital health business line. As a result, the team has delivered several digital platforms, including the U by Prodia and Prodia for Doctor applications, to redound interoperability optimally.
The Director of Finance at Prodia Widyahusada, Liana Kuswandi, revealed that the company has also noted its fantastic performance by enhancing its revenue up to 2.5%, approximately US$68.4 million, in the initial quarter of 2023, compared to the former worth US$66.4 million in the similar period.
As a network of private clinical laboratories, Prodia claims that its existence has dominated market share in Indonesia, with market share growth of 40.5% last year. In its journey, the company has developed ten new types of tests to meet customers’ complex laboratory examination needs. As a result, the company has conducted over 3,000 lab tests, which have been tested for accuracy and international labs certified.
Hitherto, the company has possessed about 149 branches throughout Indonesia’s regions. Through its multiple business strategy, Prodia company will target its business revenue to grow by around 4% – 5% by the end of 2023.
Investment opportunity in the healthcare industry
Health industry services are considered one of the attractive investment sectors, one of which is investment in health service providers, hospitals, and health laboratories. According to this company, investors must consider regulatory and competitive risks in the industry before injecting capital into this sector.
On the other hand, a healthcare investment can also be made in startup companies that design telemedicine platforms and wearable technology. Digital media records are also increasingly popular in simplifying patient data and various health care providers. These matters can potentially revolutionize healthcare delivery by improving efficiency, accessibility, and quality.
As is well known, spending on health services in Indonesia has continued to increase, both from the government and private sectors, since 2015. Also, the health services expenditure is estimated to reach US$43.6 billion in 2023 and will continue to elevate to 7% by 2027.
The digital health services market share is also considered to have investment opportunities because the market share formed by digital services continues to grow. By 2023, the digital health services market share is estimated to reach US$2.4 billion and will continue to increase, with projected growth of up to 14% in 2027.
Moreover, Indonesia’s diagnostic laboratory market share shows stable performance, with revenues of US$1.8 billion last year. Based on market share, the private hospital diagnostic laboratories dominate the market at 45.5%, as public hospitals (34.8%) and independent laboratories (19.7%).
“Investment opportunities in health laboratories are also promising as an increasing demand along with the development of medical technology and accurate disease diagnosis. This sector can also become an investment object due to containing a critical role in research and development of effective diagnostic,” concluded Liana.
