Torrent Pharma to acquire Curatio Health for Rs2,000 cr
03 Oct 2022
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Torrent Pharmaceuticals is acquiring dermatology company Curatio Health Care (I) Pvt Ltd for Rs2,000 crore ($245.22 million). The company on Tuesday said it has entered into definitive agreements to acquire 100 per cent of Curatio for Rs2,000 crore.
The consideration includes Rs115 crore (on the date of signing) of cash and cash equivalents in the acquired business, indicating an Enterprise Value of Rs1,885 crore.
Torrent Pharma said that following the Curatio deal it will be among the top 10 companies in the dermatology segment in the country, according to an exchange filing.
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 about 75 per cent of its total revenue.
With this acquisition, Torrent Pharma will add a Field Force of 600 MRs and a distribution network of 900 stockists.
Curatio’s reported revenue of Rs224 crore for FY21-22. With YTD August sales up 25 per cent, Curatio is expected to cross Rs275 crore revenue in FY23.
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, which is 1.6 times the IPM CAGR.
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, Torrent Pharma said.
“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 stated.
The transaction is subject to conditions precedent and is expected to close within one month, Torrent Pharma said.
Torrent Pharmaceuticals Limited, with annual revenue of more than Rs. 8,500 crore, is the flagship company of the Torrent Group, with group revenue of more than 22,500 crore. It is ranked 8th in the Indian pharmaceutical market and is amongst the top 5 in the therapeutics segments of Cardiovascular, Gastro Intestinal, Central Nervous System, and Vitamins Minerals Nutritionals.
Torrent Pharma is a specialty-focused company and more than 74 per cent of its revenue comes from chronic and sub- chronic therapies in India . It has presence in 40 countries and is ranked No. 1 amongst the Indian pharma companies in Brazil, Germany and the Philippines.
Torrent has 7 manufacturing facilities, of which 4 are USFDA approved.
