Biocon, Dr Reddy’s among 6 pharma majors in race to acquire Curatio Healthcare

Aurobindo, Biocon, Dr Reddy’s, JB Chemicals, Torrent Pharma, and Zydus Healthcare are the six pharmaceutical majors shortlisted for acquiring Curatio Healthcare, a Chennai-based company focused on skincare products, The Economic Times has reported.

Private equity (PE) buyout funds such as Apax Partners, Advent International, and Warburg Pincus, too, have been shortlisted for the next round. The second round of bids is expected by the end of March 2022.

Moneycontrol couldn’t independently verify the story.

Leading investors, including ChrisCapital and Sequoia, and the promoters plan to sell Curatio Healthcare at a valuation of Rs 2,000-Rs 3,000 crore.

Venture capital fund Sequoia holds a 33 percent stake, Chryscapital 20 percent and the promoters, including GK Ramani, and the management hold the rest in Curatio.

Curatio is expected to post a revenue of Rs 240 crore in FY22 with an Ebitda of Rs 75 crore.

The company was established in 2005 by a team of former executives with American Remedies that merged with Dr Reddy’s Labs in 1999, according to the report.

Rising PE interest in pharma sector
The pharmaceutical sector witnessed deals worth $2.2 billion in 2021 compared to $2.9 billion in the previous year.

In the last two years, the Indian pharma sector witnessed large buyouts, mostly by private equity funds.

In 2020, KKR acquired around 54 percent stake in Mumbai-based JB Chemicals & Pharmaceuticals, one of the oldest pharma companies in the country, for Rs 3,100 crore.

In 2020, Carlyle took over animal healthcare company Sequent Scientific for about $210 million and Hyderabad-based drug maker Viyash Life Sciences in November 2021 for $300 million. Moneycontrol