$33 mil­lion

The Economic Times - - Companies: Pursuit Of Profit - Vikas.Dan­dekar@ times­group.com

for stake on the In­dian mar­ket, CTSI is owned by a group of ex­perts and physi­cians in the US Mum­bai: Global pri­vate equity firm TPG has ac­quired a 65% stake in In­dia-fo­cused Can­cer Treat­ment Ser­vices In­ter­na­tional for $33 mil­lion.

Top ex­ec­u­tives of TPG told ET the de­ci­sion to in­vest in US-based Can­cer Treat­ment Ser­vices In­ter­na­tional (CTSI) — an emerg­ing end-to-end provider of can­cer treat­ment ser­vices — was based on the grow­ing cases of can­cer in In­dia and the ex­ist­ing gap in treat­ment op­tions. The deal was done through TPG’s mid­dle mar­ket and growth-equity in­vest­ment ve­hi­cle TPG Growth, they said.

Ex­perts say In­dia needs to at least dou­ble the num­ber of can­cer care cen­tres from the 200-250 at present.

“If we just look at the preva­lence of the (can­cer) dis­ease in In­dia in 2015, we had re­ported in­ci­dences of 1.1 mil­lion (each year) whereas the es­ti­mated in­ci­dence is 1.6 to 2.1 mil­lion,” said Vishal Bali, se­nior health­care ad­vi­sor for TPG Growth in Asia. “So what we are deal­ing with is def­i­nitely an un­der-di­ag­nosed dis­ease seg­ment, which is grow­ing al­most 7-8% per an­num and, there­fore, re­quires se­ri­ous at­ten­tion.”

CTSI pres­i­dent Joe Ni­cholas, when asked about the stake di­lu­tion, said: “Our abil­ity to grow quickly de­pended on the cap­i­tal in­fu­sion and an in­vestor like TPG, who brought knowl­edge (physi­cians and hospi­tal op­er­a­tors) in a mar­ket that had amaz­ing and im­me­di­ate mar­ket op­por­tu­ni­ties.”

Ex­ec­u­tives at CTSI said the deal will help the can­cer treat­ment ser­vice provider ex­pand to 15 cen­tres in the country in the short term, from two now.

CTSI plans to tap the mid-tier hos­pi­tals and fill the gap by build­ing ex­per­tise for part­ners in three broad seg­ments of can­cer treat­ment — med­i­cal, sur­gi­cal and ra­di­a­tion on­col­ogy, the ex­e­cuti-

ves said, adding that align­ing with the larger cor­po­rate names couldn’t be ruled out. They de­clined to dis­close the cur­rent rev­enues and prof­its.

Ex­ec­u­tives at TPG Growth said in­vest­ment in CTSI will grow in cre­at­ing more can­cer-care cen­tres and pri­mar­ily via ground-feet re­la­tion­ships. The com­pany has a hub at Hy­der­abad but may look at cre­at­ing more hubs as the busi­ness scales up. “In In­dia, most hos­pi­tals serve car­di­ol­ogy, neu­ro­sciences or or­tho­pe­dics, but on­col­ogy as a ser­vice is not pro­vided widely. We are keen to part­ner and pro­vide on­col­ogy plat­forms with cur­rent hos­pi­tals,” they said.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.