In its attempt to expand and enhance its diagnostics business, online pharmacy startup PharmEasy has taken up the majority in the Thyrocare diagnostic chain technologies. According to an exchange filing issued on Friday, PharmEasy parent API Holdings signed a formal deal to buy a 66.1% stake in Thyrocare for Rs 4,546 crore, the first acquisition of a publicly listed company by an Indian unicorn.
Docon Technologies, a subsidiary of API Holdings, will also make an open offer for a 26% share in the company. In addition, Dr. A Velumani, chairman and managing director of Thyrocare, will independently purchase a minority non-controlling position in API valued at less than 5% as part of a series of equity investments by existing and new API investors, according to Pharmeasy.
With over 110 million tests completed annually, Thyrocare claims to be the country’s largest diagnostics provider by volume. It has a network of about 3,330 collecting centers spread across India’s more than 2,000 cities. With 1 mega central processing lab, 2 zonal processing labs, and 13 regional processing labs spread around the country, the company employs a multi-lab approach. However, the transaction is still pending regulatory approval, although it was completed at a discounted INR 1,300 per share price.
“The unique reach and strength of Thyrocare in Diagnostics blended with a young and dynamic team of PharmEasy will bring in better healthcare solutions for common man nationwide,” stated Dr. Velumani, Chairman and MD of Thyrocare.
While in April this year, PharmEasy secured $350 million to become a unicorn at an estimated valuation of $1,5 billion, Thyrocare’s market capitalization is INR 7,660 Cr. At the closing of the day, their shares traded on INR 1,450.35. In the last year, the company share price grew 187% – a moment in which the country was slipping into the pandemic of Covid-19.
Online Pharmacy Unicorn has 12 Mn+ customers, a network of over 6,000 digital consulting clinics, and over 90,000 partner stores in the entire country. Every month, it provides pharmacy and diagnostics services to over 1 million patients, conducts 300,000+ consultations, and issues over 1 million digital prescriptions.
In the preceding year, the healthcare startups in the country have seen a series of great acquisitions. Tata Digital announced the majority-stakeholder acquisition for 1MG on June 10. In addition, Reliance Retail acquired 60% of Netmeds equity stake for $83 million (INR 620 Cr). In contrast, Amazon built its own pharmacy to offer healthcare services throughout India.
