Drug maker Sanofi has invested Rs 90 crore ($15 million) to buy 20 per cent stake in Apollo Sugar Clinics Ltd, a diabetes care clinic chain of Apollo Hospitals Enterprises Ltd. The deal values the company at Rs 450 crore.
This follows a strategic agreement between the two firms announced last September.
Apollo Sugar is a subsidiary of Apollo Health and Lifestyle Ltd ( AHLL), which in turn is a wholly owned subsidiary of Apollo Hospitals, the country's top hospital operator.
It is a single specialty business focused on providing care across its clinics for people with diabetes.
In India, diabetes afflicts over 65 million people and in addition to this over 77 million people have been diagnosed as being pre-diabetic. These numbers are still growing significantly and the total number of diabetics in India is expected to rise to 109 million by 2015, the company said.
The investment includes fresh issue of securities besides a stake purchase from Apollo. The firm did not say how much of the money goes into Apollo Sugar.
The company spokesperson did not say how much Apollo gets from selling some of its stake but shared that Sanofi has picked 20 per cent with this transaction. The official statement did not say the quantum of stake acquired in the process.
Neeraj Garg, CEO of AHLL, said in a statement, “The investment made by Sanofi and the strong support of both our shareholders, enable us to grow our footprint to offer our services at many more clinics across India, and provide millions of diabetic customers access to world class care at their doorstep.”
AHLL, founded in 2002 and headquartered in Hyderabad, also runs one of the nation's largest network of standardised day-to-day healthcare facility branded 'Apollo Clinic'. This unit has close to 100 facilities operational across the length and breadth of the country and the Middle East.
It also operates a network of women and children hospital-Apollo Cradle- that provides care to women for gynaecology and fertility treatments, along with neonatal and paediatric care.
Apollo Hospitals recently acquired Nova Specialty Hospitals, the short-stay surgical centres unit of Nova Medical Centers Pvt Ltd, for around Rs 145 crore ($24 million).
The group also has interests in health insurance, global projects consultancy, academic institutions and clinical trials among others and the listed flagship is now foraying into single specialty segment by launching hospitals in cardiology and oncology space.
(Edited by Joby Puthuparampil Johnson)