Case Insight – Torrent Pharma to acquire dermatology company Curatio Health Care

Torrent Pharmaceuticals Ltd will acquire dermatology company Curatio Health Care India Pvt Ltd for ₹2,000 crore. 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.

Curatio’s Portfolio

• 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

• 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.

Outcome for Torrent Pharma 

• 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.
• With the acquisition, Torrent Pharma will add a Field Force of 600 MRs and a distribution network of 900 stockist.