India’s Top Pharma Companies In Talks To Buy Pharmarack (B2B Healthcare Platform) To Build Digital-first Pharma Distribution Biz

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Source: Pharmaclub

A consortium of India’s top pharmaceutical majors, including Sun Pharma, Cadila Healthcare, Lupin and Torrent Pharma, is in advanced negotiations to acquire business-to-business healthcare platform Pharmarack. This is as per a report in the Economic Times.

Regulatory lings by the four companies last week reveal that each has invested Rs 40 crore for 20% in newly formed venture ABCD Technologies, with the stated objective of facilitating efficient goods distribution and digitising healthcare.

This new entity, due to be renamed IndoHealth Services, will acquire Pune-based Pharmarack. The digital platform, having onboarded 3,000-4,000 distributors and 100,000 retailers, will provide the technological backbone to companies looking to build their own online B2B marketplace and, eventually, an online pharmacy, according to people in the know.

Source: iamwire

“They (Lupin, Sun, Torrent and Cadila) are acquiring a B2B marketplace for pharmaceuticals, Pharmarack. The major reason they are doing this is because it’s getting competitive with Tata, Reliance and everyone else coming into the sector,” said one person cited above.

The report confirmed that ABCD Technologies was in the process of buying out 100% equity in Pharmarack and that the deal would be closed soon. 

The consortium has appointed KPMG to draw up a strategy for building an online pharmacy to compete in the segment. There has been consolidation, with Reliance Industries acquiring majority stake in Chennai-based Netmeds, Tata group in the final stages of acquiring majority stake in 1mg, Amazon foraying into the segment with its largest seller Cloudtail, and Apollo Pharmacy launching its own online platform.

Source: TopCashback

These players are expected to grow their private label portfolios in the coming years, driving up competition for traditional pharma companies.

Source: miscw

“Reliance, through Netmeds, has already started working on its own private label brands. Apollo Pharmacy already has a strong private brand portfolio and other large retailers are also expected to do the same, as it’s a highly lucrative business,” said multiple sources.

While Sun, Cadila, Lupin and Torrent are the only four companies to have disclosed their investment in ABCD Technologies so far, more pharmaceutical companies are expected to buy in. 

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