Torrent Pharmaceuticals has entered into definitive agreements to acquire 100 per cent of Curatio Healthcare (I) for Rs 2,000 crores. 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 per cent of 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 for FY21-22 was Rs 224 crores. With YTD August sales up 25 per cent, Curatio is expected to cross Rs 275 crores 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 therapy has delivered an 18 per cent CAGR which is 1.6x of the IPM CAGR.
Commenting on the acquisition, Aman Mehta, Director said “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.”
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.