Vijaya Diagnostic Acquires PH Diagnostic for INR 134.65 Cr

As part of the acquisition, Vijaya Diagnostic Centre invested an additional INR 12.85 Cr, through equity or loan infusion, to address existing debts. Post-completion, PH Diagnostic Centre will function as a wholly-owned subsidiary of Vijaya Diagnostic Centre.

Mumbai-listed Vijaya Diagnostic Centre has acquired Pune-based PH Diagnostic Centre in a cash transaction deal of INR 134.65 Cr. 

The decision was formalised during a board meeting held on Tuesday, where the terms and conditions of the share acquisition agreement were unanimously approved.

As part of the acquisition, Vijaya Diagnostic Centre invested an additional INR 12.85 Cr, through equity or loan infusion, to address existing debts. Post-completion, PH Diagnostic Centre will function as a wholly-owned subsidiary of Vijaya Diagnostic Centre.

PH Diagnostic was started by Dr Hemanth Dhoka in 2001. It has 22 centres across Pune. Of those, three hub centres are equipped with advanced radiology equipment like MRI/CT machines, and three spoke centres can facilitate basic radiology services including ECG, X-Ray, and ultrasound. 

The company claims net sales of INR 41 Cr during 2022-23, down from INR 49 Cr the year before. 

On the other hand, Vijaya Diagnostic was launched in 1981 and went public in 2021. It has more than 140 centres across 20 cities, though a vast majority of the outlets are in Hyderabad. The firm employs over 200 radiologists, microbiologists and pathologists. 

India's fragmented preventive healthcare and diagnostics segment is primarily dominated by standalone pathology chains. In the organised segment, Vijaya Diagnostic competes with the likes of Apollo, Metropolis, Dr Lal PathLabs Ltd, Thyrocare Technologies Ltd, and Agilus Diagnostics, a unit of Fortis Healthcare. 

In related developments, Sterling Accuris Diagnostics, based in Ahmedabad, recently acquired Vaibhav Analytical Services, an analytical testing platform, with the aim of broadening service offerings, particularly in pharmaceutical analytical testing.

The healthcare sector, on a broader scale, has witnessed significant mergers and acquisitions. For instance, Roche's acquisition of Carmot Therapeutics, valued at close to $3.1 billion, marked the pharmaceutical giant's entry into the weight loss treatments market. 

Carmot Therapeutics specialises in assets based on glucagon-like peptide 1 (GLP-1) agonists, initially developed to regulate blood sugar levels in individuals with diabetes.

Meanwhile, Hyderabad-based TRUSTlab Diagnostics has strategically expanded its national presence with the launch of six advanced laboratories, reinforcing its footprint in the healthcare sector.