Portea Medical buys Medybiz Pharma in cash and stock

Home healthcare services provider Portea Medical said on Monday it has acquired specialty pharmaceutical distributor Medybiz Pharma Pvt Ltd in a cash-and-stock deal.

Portea, led by serial entrepreneurs K Ganesh and Meena Ganesh, didn’t disclose the value of the transaction.

VCCircle first reported last month that Portea, run by Health Vista Pvt Ltd, and Medybiz were in advanced talks for a buyout deal.

Portea MD and CEO Meena Ganesh said the acquisition will help the company deliver better pharmacy care to patients with chronic conditions who have ongoing needs for medication.

According to a person in the know of the development, Portea may have shelled out $30 million (Rs 200 crore) to buy Medybiz Pharma.

In September, Portea had raised $37.5 million (Rs 247 crore) from Accel Partners, IFC, Qualcomm Ventures and Ventureast in a Series B round. It had previously raised $9 million from Accel, Qualcomm and Ventureast.

Portea Medical handles about 60,000 home visits a month across 24 cities in India.

Medybiz has 200 employees and is present across 26 cities in 19 states in India. Its chairman Kewal Handa, a former managing director at Pfizer India, had led a management buyout of the business in 2011. Medybiz was earlier part of Reliance Anil Dhirubhai Ambani Group, now known as Reliance Group.

Started in 2009, Medybiz Pharma has positioned itself as a pharmaceutical benefits manager. The company claims to have served more than 200,000 patients providing prescription refill and therapy compliance support for super-speciality medicines.

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