Torrent Pharma to acquire skincare manufacturer Curatio Healthcare: Details

Written by Dr. Divya Colin Published On 2022-08-26T18:00:03+05:30 | Updated On 26 Aug 2022 6:00 PM IST

Torrent Pharma to acquire skincare manufacturer Curatio Healthcare: Details

Mumbai: Ahmedabad based leading pharmaceutical company, Torrent Pharmaceuticals, is nearing a deal to acquire skincare product maker Curatio Healthcare, according to sources quoted by the ET.

According to additional reports on the aforementioned transaction, the agreement will be executed within the next two weeks andTorrent will probably pay $2,100 crore for the transaction..

Torrent was not the only pharmaceutical company shortlisted for the acquisition of Curatio; other contenders were Aurobindo, Dr. Reddy's, JB Chemicals, Biocon, and Zydus.

Eventually, as per the reports, the two remaining parties in the race to acquire Chennai-based Curatio were Torrent Pharma and KKR-controlled JB Chemicals.

It is reported that current Curatio shareholders Sequoia Capital, which owns a 33% stake, and ChrysCapital, which has a 20% stake, will sell their shares. The promoters of the company, including GK Ramani, as well as the management, will also be leaving.

Curatio, which was set up in 2005, runs through a network of more than 700 distributors and primarily targets dermatologists, paediatricians, and gynaecologists. Tedibar baby soap is its most well-known brand. During the fiscal year 2022, the company reported 240 crore rupees in sales and 60 crore rupees in operating profit. For the current fiscal year, the corporation forecasts 300 crores in revenue and 90 crores in operating profit.

However, in response to the request for clarification regarding the aforementioned agreement, the major pharmaceutical company Torrent Pharmaceutical cited, "It is the company's policy not to respond to any speculative news items. As a growing Company, we do continuously scout for the business opportimities, both organic and. inorganic. As a responsibie listed organization, we inform the Exchanges all events, information which are required to be disclosed in accordance with terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

With an annual sales of 8,500 crore, Torrent Pharma is the pillar business of the Torrent Group. The company generates more than Rs 20,000 crore in revenue. Torrent Pharma is among the Top 5 in the therapeutics segments for the cardiovascular, gastrointestinal, central nervous system, and vitamins, minerals, and nutritionals. It is placed eighth in the Indian pharmaceuticals market.

In the domestic pharmaceutical market, Torrent Pharma is active in aggressive purchasing. It purchased Zyg Pharma, a producer of dermatological formulations that was a member of the Encore Group, in 2015 as well as the domestic branded business of Unichem in 2017, Elder Pharma's local formulations business in 2016, and the domestic branded business of Unichem in 2017. Regestrone and Pregachieve, two brands in the female healthcare market, were purchased by Torrent in 2017 from Novartis .

Key branded generic markets have shown robust revenue growth for Torrent Pharma, and this trend is likely to continue. Margins have been helped by additional price increases in the branded generic sector and cost-saving measures. Comfort comes from Torrent's strong exposure to the branded generic market (which accounts for 70% of total revenues). According to Param Desai of Prabhudas Lilladher, timely plant resolution will increase revenue growth in the US going forward and benefit operating leverage.

Also Read:Torrent Pharma ropes in Aman Mehta as Director on its board

Torrent Pharmacuratio healthcareacquisitiontorrent pharma newsChrysCapitalSequoia Capital

Dr. Divya Colin

Doctor of Pharmacy

Dr. Divya Colin, a Doctor of Pharmacy Graduate with extensive experience in clinical and hospital settings and confidently equipped with diagnostic and therapeutic skills. She also has spread out exposure to Oncology Departments in Mysore Medical College and Research Institute as Oncology Pharmacist. Currently she is building a career in clinical research and clinical data management. She has been a part of Medical Dialogue since January 2022.