After Ascent Wellness & Pharma Solutions and Medlife, PharmEasy proceeded to buy Thyrocare. Founded in 2014 by Dharmil Sheth and Dr Dhaval Shah, the company became another name for India’s online medical delivery service throughout the pandemic. PharmEasy became the most extensive online medical store after acquiring Medlife in May 2021. CEO Siddharth Shah declared that he wanted to expand the company’s presence to all outpatient services in India by acquiring Thyrocare.
However, the experts believe the excitement of the acquisition might be short-lived, and PharmEasy might be paying a hefty price for the 66.1% stake in the leading diagnostic company. It is interesting to see how Pharmeasy stock price will perform amidst a mix of situations like the awaited IPO ahead and recurring losses.
The Acquirer and Acquiree
PharmEasy Vs Thyrocare Share Price and Revenue in 2022
Pharmeasy unlisted share price currently are Rs. 28 on Feb 21, 2023, and its revenue in FY2022 was Rs. 5.7290 billion. Thyrocare’s share price on Feb 21 stands at 480.70, and its last year’s total revenue in FY2022 was Rs. 5.68 billion.
What Benefits did Thyrocare and PharmEasy See In This Acquisition?
- In 2021, Pharmacy acquired 66.1 per cent of shares of Thyrocare. Thyrocare has an excellent year with an ROE of 33.45% at the end of the financial year 2021-22.
- The chairman, A Velumani, said his exit would motivate many. He says that it is essential to know when and how to exit.
PharmEasy wanted to add new services in healthcare & medicine and increase its business domain. The company provides diagnostic and sample testing services for its patients. With the acquisition of Thyrocare, PharmEasy sought to lower the cost of diagnostics at established laboratories of Thyrocare with cutting-edge technology covering 350 diseases. The main motive for this venture is summed up in Siddharth Shah’s statement. He commented that they are actively looking at hospital supplies, insurance, and medical devices and are at the start of the journey. The businessman wanted to create integrated use cases to capture the entire consumer journey. Velumani mentioned that better healthcare options would be available to the average person nationwide thanks to the combination of Thyrocare’s unique diagnostics reach and the strength of the young, vibrant PharmEasy team. The two companies can potentially deliver fast and timely outpatient service working together.
PharmEasy Finds Itself At A Critical Juncture After the Thyrocare Venture
Buying Thyrocare’s shares at Rs. 1300 might have seemed like a 10.2% discount against Thyrocare’s market price on June 25, 2021. Still, the experts had suggested that it would appear expensive after the pandemic passed, and online prescription and diagnostics might take a backseat. The business world fears that Thyrocare might look more like a costly liability than a profitable business in the post-pandemic world. Moreover, the company is already dealing with widening losses impacting Pharmeasy share price.
The Bright Side
With an integrated model extending to all patient needs, PharmEasy can offer more trust &availability and make online medical services an alternative to mild medical concerns. The CEO, Siddharth Shah, remarked that by utilising technology and expanding on Thyrocare’s enormous scale and genuinely pan-India presence, PharmEasy will now deliver a top-tier client experience in diagnostics that rivals our pharmacy experience. The business tycoon elaborated on the company’s vision for the near future, mentioning that it wants to be available across all healthcare services and products, such as doctors and prescriptions, medicine, diagnostics, hospital supplies, etc. Despite recurring losses at PharmEasy, the management has clarified that it will not sell Thyrocare but rather reduce expenses to reduce losses.
PharmEasy remains a hopeful investment for buyers, and many are showing great interest in buying unlisted shares ahead of the Pharmeasy IPO listing. Stockify provides easy support and the information you might need to help you purchase unlisted and listed shares. If you wish to learn how to make a profitable investment, Stockify is a good option.