PharmEasy acquires Thyrocare: Dealmakers explain rationale and road ahead
API Holdings (API), the parent company of PharmEasy confirmed our newsbreak on June 25 that it was acquiring 66.1 percent stake in Thyrocare from Dr A Velumani and affiliates at a price of Rs 1,300 per share aggregating to Rs 4,546 crore. Both the players explained the rationale of this deal from their perspectives in an interview to CNBC-TV18.
API Holdings (API), the parent company of PharmEasy confirmed our newsbreak on June 25 that it was acquiring 66.1 percent stake in Thyrocare from Dr A Velumani and affiliates at a price of Rs 1,300 per share aggregating to Rs 4,546 crore. Both the players explained the rationale of this deal from their perspectives in an interview to CNBC-TV18.
“We are strong in consultations, treatment and technology. One large missing piece for us was diagnostics. When we looked at Thyrocare, it seemed like the perfect marriage,” said Siddharth Shah, co-founder and CEO of API Holdings.
According to Dr Velumani, this is a very rare combination. “It is a complete online mall.”
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“We believe that the combined power of this platform will be able to provide a continuum of care to patients like it has never been done before,” Shah added.
When asked what advice he will give to the likes of Siddharth Shah, Dr Velumani mentioned, “In a situation like this, don’t look at the competition side, look at the opportunity side.”
Why the sale when the industry has been seeing a major bull run? That’s a question that has been doing the rounds.
“The company is not doing well as it was doing earlier. I thought let me now change the track, there is no financial or emotional constraint,” explained Dr A Velumani, CMD and CEO, Thyrocare Technologies.
The business in last the last three years was aided by the brand and was boosted by COVID last year.
Pharmeasy believes that any outpatient healthcare requires four stages of handholding starting with information, then going for consultation and diagnostic tests and finally getting the treatment.
“This entire journey for a patient should be given at one single point with one single partner and must be made affordable and accessible. Only way to do this is by leveraging technology at scale,” said Shah.
On listing, Shah said, “We are definitely considering the listing of PharmEasy at an appropriate time, all options are on the table.”
“I am pretty sure, this combination of Thyrocare and PharmEasy, with all verticals, will be the single largest healthcare provider in the country by 2025,” Velumani shared.
For the full interview, watch the accompanying video.
(Edited by : Abhishek Jha)
First Published: Jun 28, 2021 1:15 PM IST
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