Accelerating Innovation in the Healthcare Industry
Many times, components like collaboration, partnership, and agreement work in the favour of a brand that is willing to expand its footprint to different regions and countries. A similar thing happened within the Indian healthcare industry where India’s Cancer Treatment Services International (CTSI) was acquired by Varian Medical Systems for $283 million (INR 1,974 crore).
CTSI: Improving the Healthcare Scenario of the Country
CTSI has a large, dominant, and well-established network of cancer treatment facilities that comes under the American Oncology Institute brand. The network is deeply scattered across India and South Asia along with an integrated reference pathology and laboratory service provider.
CTSI is a part of Asia Healthcare Holdings (AHH), a platform founded by TPG Growth in 2017. The transaction is expected to close in two weeks, subject to the customary conditions. CTSI employs around 1,500 people in India and the US. The sale marks the first exit in AHH.
Accelerating Innovation for Boosting Clinical Services and Needs
The initiative is believed to be an important step towards accelerating innovation in the Indian healthcare industry. The transaction between these two firms is believed to boost identification of unmet clinical and operational needs, facilitating advancement in services and technologies.
Dow Wilson, President & Chief Executive Officer, Varian said, “Our acquisition of CTSI is consistent with this strategy and will allow us to better support oncology centers globally, accelerate access to technology-driven care and build a feedback loop that will drive cost-effective innovation.
We look forward to pooling the ingenuity of our combined team with the power of data, technology, and clinical insights to achieve new victories against cancer, especially for the millions of patients globally without access to appropriate care.”
The Growing Need for Quality Cancer Care in India
The latest facts, researches, and statistics clearly explain that India does require quality cancer care centres. CTSI which is being run by TPG Growth is constantly working to revamp and improve the healthcare scenario in regions like India and South Asia. They deeply believe that their constant contribution in the healthcare industry will eventually boom business opportunities, inviting healthcare franchisors and entrepreneurs for improving the healthcare scenario along with generating money.
Matthew Hobart, Partner, TPG Growth explains, “We invested in CTSI in 2016 with the belief that it was in a strong position to address the growing need for quality cancer care in India. Today, CTSI is one of the largest providers of high-quality oncology services across the country and broader South Asia.”
Improving the Indian Healthcare Scenario through Acquisition
AHH or Asia Healthcare Holdings is owned by TGP Growth which regularly invests in healthcare companies for improving the business scenario in that particular location.
Talking about India, AHH had already made a successful investment with Nova Fertility in the past that brought good results after AHH acquired Nova Fertility. In fact, it is India’s second largest network of in-vitro fertilisation centres, having around 20 facilities in more than 14 cities.
“The genesis of AHH was to build single-speciality healthcare delivery businesses. Majority positions in these early-stage entities give our team the unique opportunity to mould their future by giving them the right management teams, capitalization, and profitable growth trajectory. CTSI validates this unique approach to Indian healthcare,” highlights Vishal Bali, CEO, AHH.