Torrent Pharmaceuticals to acquire 100% stake in Curatio Healthcare for Rs2,000 crore; stock skids ~4%

28 Sep 2022 , 09:15 AM

Torrent Pharmaceuticals Limited has agreed to acquire 100% of Curatio Healthcare (I) Private Limited (Curatio) for Rs2,000 crore. The payment comprises Rs115 crore in cash and cash equivalents in the acquired firm on the day of signing, suggesting an Enterprise Value of Rs1,885 crore.

Curatio has a substantial presence in the cosmetic dermatology industry, with over 50 products sold in India. Curatio’s portfolio includes well-known brands such as Tedibar, Atogla, Spoo, B4 Nappi, and Permite, all of which are listed among the top five brands in their respective markets. Curatio’s top 10 brands account for 75% of overall sales. Torrent Pharma will get a Field Force of 600 MRs and a distribution network of 900 stockists as a result of this transaction.

Curatio declared revenue of Rs 224 crores for FY21-22. Curatio expects to reach Rs. 275 crores in revenue in FY23, with YTD August sales up 25%. Dermatology generates 82% of Curatio’s sales. Cosmetic dermatology is a major component within dermatology. Cosmetic dermatology as a therapy has achieved an 18% CAGR over the last decade, which is 1.6x the IPM CAGR.

With this acquisition, Torrent Pharma will join the top ten dermatological companies and will be the market leader in aesthetic dermatology.

The transaction is subject to conditions precedent and the company expects to close it within one month.

At around 9.17 AM, Torrent Pharmaceuticals was trading at Rs1,478.05 per piece, down by 3.62% from its previous closing of Rs1,533.60 on the BSE.

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