Poly Medicure Limited , a prominent player in the medical devices industry, has successfully completed the acquisition of the PendraCare Group, marking a significant expansion in its global footprint. The company announced the closure of the deal through its wholly-owned step-down subsidiary, RisoR Holdings B.V., based in Amsterdam, Netherlands.

Acquisition Details

The acquisition has now been finalized with all conditions of the Share Purchase Agreement (SPA) fulfilled. Key points of the transaction include:

• Poly Medicure now owns 90% of the economic rights in the PendraCare Group.
• The acquisition was executed through RisoR Holdings B.V., a wholly-owned step-down subsidiary of Poly Medicure Limited.
• Wellinq Medical B.V. and PendraCare Holding B.V. have become step-down subsidiaries of Poly Medicure Limited.
• The SPA was signed between RisoR Holdings B.V. and Wellinq Holdings B.V., both based in Amsterdam, Netherlands.

Strategic Implications

This acquisition represents a strategic move for Poly Medicure Limited, potentially enhancing its product portfolio and market presence in Europe. The PendraCare Group's integration into Poly Medicure's operations is expected to bring synergies and expand the company's capabilities in the medical devices sector.

Regulatory Compliance

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Poly Medicure Limited has duly informed the stock exchanges about the completion of this acquisition. The company stated that all necessary disclosures regarding the acquisition details were previously made in their intimation letter.

Conclusion

The successful completion of this acquisition marks a significant milestone for Poly Medicure Limited. As the company integrates the PendraCare Group into its operations, stakeholders will be keen to observe the impact on Poly Medicure's market position and financial performance in the coming quarters.

Investors and market watchers are advised to keep an eye on future announcements from Poly Medicure Limited for updates on the integration process and potential business synergies resulting from this strategic acquisition.

Poly Medicure , a leading medical device manufacturer, has announced a strategic acquisition that promises to reshape the landscape of cardiology care in India. The company has secured a 90% stake in the Netherlands-based PendraCare Group for an enterprise value of Rs 188.5 crore, with plans to acquire the remaining 10% by 2030.

Cost Reduction and Market Access

Managing Director Himanshu Baid highlighted the significant impact this acquisition is expected to have on the Indian healthcare market. By leveraging local manufacturing capabilities, Poly Medicure aims to reduce the costs of critical cardiology catheters by 25-30%. This move is particularly crucial as most of these devices are currently imported, making them expensive for Indian patients.

The deal also provides Poly Medicure with immediate access to the lucrative US and European markets. PendraCare's existing manufacturing setup in Europe and its regulatory approvals will be key assets in this expansion.

Product Portfolio and Market Potential

The acquisition brings a range of essential cardiology products under Poly Medicure's umbrella, including:

• Angiographic catheters
• Guiding catheters
• Diagnostic catheters

These devices are critical components in angiography and angioplasty procedures. With approximately 20 lakh angiographies performed annually in India, the market potential is substantial.

Financial Projections and Synergies

Poly Medicure is optimistic about the financial outcomes of this acquisition:

• Expected synergy of €3-4 million between the companies over the next two to three years
• Projected improvement in margins to over 25%
• Anticipated domestic business growth exceeding 30%

Market Response and Challenges

The market has responded positively to the news, with Poly Medicure's shares closing 1.47% higher at Rs 2,025.00. However, the company faces potential challenges from GST rationalization, which is set to take effect on September 22.

Investor Relations

In related news, Poly Medicure has scheduled investor meetings in the coming weeks. The company will hold virtual and physical one-on-one meetings with representatives from Invesco Asset Management (India) Private Limited and PineBridge Investments. These meetings demonstrate the company's commitment to maintaining open communication with investors following this significant acquisition.

This strategic move by Poly Medicure not only strengthens its position in the medical device market but also aligns with the broader goal of making critical healthcare more accessible and affordable in India. As the company integrates PendraCare's operations and expands its global footprint, the medical device landscape in India and beyond is poised for significant transformation.