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.