Torrent Pharmaceuticals Limited on Tuesday announced that it has entered into definitive agreements to acquire 100 percent of Curatio Healthcare (I) Private Limited (Curatio) for Rs. 2,000 crores. According to the company’s press statement, the consideration includes Rs. 115 crores (on the date of signing) of cash and cash equivalents in the acquired business indicating an Enterprise Value of Rs. 1,885 crores.
“Curatio has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, marketed in India. Curatio’s portfolio consists of leading brands such as Tedibar, Atogla, Spoo, B4 Nappi, and Permite, which are ranked amongst top 5 brands in their covered market. Top ten brands of Curatio account for ~75% of total revenue. With this acquisition, Torrent Pharma will add a Field Force of 600 MRs and a distribution network of 900 stockists,” the company said in a statement on Tuesday.
According to the pharma company, Curatio’s reported revenue for FY21-22 was Rs 224 Crores. “With YTD August sales up 25%, Curatio is expected to cross Rs. 275 crores revenue in FY23. Dermatology accounts for 82% of Curatio’s revenue. Within dermatology, cosmetic dermatology is a leading contributor. Over the last decade, cosmetic dermatology as therapy has delivered an 18% CAGR which is 1.6x of the IPM CAGR,” the company stated on Tuesday.
The company claims that with this deal, Torrent Pharma will enter the league of top 10 players in the dermatology segment and will be the leader in the cosmetic dermatology space.
“We are delighted to enter into this deal with Curatio. The acquisition offers Torrent the opportunity to enhance its presence in dermatology with a differentiated portfolio and is a strong strategic fit. Curatio has built a commendable set of high market share brands in cosmetic and pediatric dermatology that we look forward to adding to our product offerings,” Aman Mehta, Director said in a statement.
Meanwhile, the transaction is subject to conditions precedent and is expected to close within one month.
“Over the last fifteen years, Curatio has built a strong portfolio of differentiated products in the derma segment that are very well received by doctors and patients. We believe Torrent is best suited to further catapult the business which we have built,” Sequoia, ChrysCapital and the Promotors of Curatio said on Tuesday.
Torrent Pharma will host a teleconference call on Tuesday at 07:30 pm IST to discuss the acquisition.
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