Torrent Pharmaceuticals Limited on Tuesday announced acquisition of the Chennai-based leading dermatology player Curatio Healthcare (I) Private Limited for ₹2,000 crore. Torrent Pharma has entered into a definitive agreement to acquire 100 per cent stake in Curatio Healthcare (Curatio) for ₹2,000 crore, that includes ₹115 crore (on the date of signing) of cash and cash equivalents in the acquired business indicating an Enterprise Value of ₹1,885 crore, an official statement said.
Notably, this further builds up Torrent Pharma’s dermatology portfolio after its acquisition of Zyg Pharma, a part of Encore Group in 2015. With this deal, Torrent Pharma will enter the league of top ten players in the dermatology segment and will be the leader in the cosmetic dermatology space. 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 five brands in their covered market. Top ten brands of Curatio account for ~75% of total revenue, the official statement said.
With this acquisition, Torrent Pharma will add 600 medical representatives and a distribution network of 900 stockists.
Curatio had reported ₹224 crore revenue for FY22. With YTD August sales were up 25 per cent, as the company expects FY23 revenue at ₹275 crore.
Dermatology accounts for 82 per cent of Curatio’s revenue. Within dermatology, cosmetic dermatology is a leading contributor.
Over the last decade, cosmetic dermatology as a therapy has delivered an 18 per cent CAGR.
Aman Mehta, Director, said, “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.”
Sequoia, ChrysCapital and the Promotors of Curatio mentioned, “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.”
The transaction is subject to conditions precedent and is expected to close within one month, a Torrent Pharma statement said.