Transaction:
- Morgan Stanley Private Equity–backed Omega Hospitals has acquired 100% of Cytecare Hospitals Pvt. Ltd., Bengaluru, through its operating entity, Hyderabad Institute of Oncology Pvt. Ltd.
- The transaction comprised secondary acquisition of shares from existing shareholders along with a primary capital infusion for growth; the exact financial terms of the deal were not disclosed.
About Cytecare Hospitals Private Limited:
- Founded in 2016, Cytecare is a 155-bed, fully integrated oncology centre of excellence offering comprehensive cancer care across surgical, medical and radiation oncology, supported by a multidisciplinary treatment model.
- The hospital provides advanced immunotherapies, including CAR-T Therapy and NK-Cell Therapy, and derives approximately 85% of its activity from surgical and oncology services.
- Cytecare has treated 13,000+ inpatients and 160,000+ outpatients, administered 50,000+ radiation therapy fractions, conducted around 6,500 PET-CT scans, and has been backed by key investors including Goldman Sachs and Gi Global Health.
About Omega Hospitals:
- Founded in 2010 by surgical oncologist Dr Mohana Vamsy, Omega Hospitals operates 10+ hospitals with 1,500+ beds, including 3 hospitals in Hyderabad including 400-bed Centre of Excellence in Gachibowli, with presence in 8+ other cities.
- While oncology is the core focus, the group offers multi-specialty services across cardiology, neurology, gynecology, ENT and allied specialties, serving thousands of inpatients and outpatients annually.
Rationale:
- Cytecare has treated 5,000+ patients, including from India, Africa, Eastern Europe, and the Middle East, supporting its scalability as an oncology platform.
- The acquisition marks Omega Hospitals’ entry into the North Bengaluru oncology market, expanding beyond its core geographies of Andhra Pradesh and Telangana.
- It is part of Omega’s pan-India expansion strategy, following recent entries into Jabalpur, Tirupati, Surat, Vijayawada, and Yamuna Nagar.
- Cytecare will be developed as Omega’s centre of excellence for quaternary cancer care, with investments planned for senior clinical talent and advanced medical equipment.
- In June 2018, Cytecare raised $31 million (Series A) investment from Goldman Sachs, to support expansion across 4–5 Indian cities.
- In June 2024, Omega Hospitals secured Rs. 500 Crore in funding from Morgan Stanley Private Equity Asia, supporting strategic acquisitions and network expansion.
- Also in FY24, Cytecare reported Rs. 91.6 crore revenue (+19% YoY) and reduced net loss to Rs. 15 crore, while Omega recorded Rs. 380 crore revenue (+45% YoY) with Rs. 6 crore net profit, demonstrating growth and improving financial performance.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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