Torrent Pharmaceuticals plans to buy dermatology company Curatio Health Care for ₹2,000 crore. With the acquisition, Torrent Pharma will add a Field Force of 600 MRs and a distribution network of 900 stockists. “Torrent Pharmaceuticals Limited (Torrent Pharma) has entered into definitive agreements to acquire 100% of Curatio Healthcare (I) Private Limited (Curatio) for Rs. 2,000 crores,” the company said in a regulatory filing. The consideration 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, the company said.Curatio has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, marketed in India. The dermatology company’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. Curatio’s revenue for FY22 came at ₹224 crore. With YTD August sales up 25%, Curatio is expected to cross ₹275 crore 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 a therapy has delivered an 18% CAGR which is 1.6x of 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. 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, the company said.
