Tuesday 07 June 2016 by FIIG Research Company updates

Company updates – Capitol Health and IMF Bentham

Capitol Health has entered into a non binding agreement to provide services to CITIC Pharmaceutical and IMF Bentham announced a major win on the Rivercity class action

Capitol Health

Capitol Health has announced it has entered into a non binding agreement to provide design, consulting and clinic management services to CITIC Pharmaceutical (a part of the CITIC Group).

The agreement provides the opportunity for future joint ventures in design, consulting and operational management of CITIC’s proposed new diagnostic imaging centres in China. CITIC’s early diagnostic imaging centres are planned for cities where they already own hospitals, which should generate patient referrals.

The recent Chinese government healthcare reform has resulted in substantial growth in the private health care industry in China. While this is a very early stage development, the agreement is the first in Capitol’s broader strategy to gain exposure to the fast growing China market.

The share market has responded favourably to the news, with the CAJ share price up 6% on the day of the announcement.

A link to the announcement is available here.External link - opens in a new window

IMF Bentham

IMF Bentham (‘IMF’) has announced a major win, with conditional settlement achieved on the Rivercity class action. The settlement relates to a claim against Aecom Australia Pty Limited and is subject to preconditions, including court approval.

More information is available here.External link - opens in a new window