Some of India’s top pharmaceutical companies, Sun Pharma, Cadila Healthcare, Lupin and Torrent Pharma, are reportedly in advanced negotiations to acquire B2B healthcare platform Pharmarack. Each of the 4 companies has invested Rs 40Cr to purchase 20% equity in a newly formed company named ABCD Technologies, aiming to facilitate efficient goods distribution and digitising healthcare, according to the ET report.
This new entity, which will be renamed as IndoHealth Services, will acquire the Pune-based Pharmarack. The new digital platform have onboarded 3,000-4,000 distributors to provide the technological backbone to companies looking to build their own online B2B marketplace which can eventually scale to an online pharmacy. A source told us that the 4 pharma majors are acquiring Pharmarack to ensure that they remain competitive against Reliance and Amazon, which have also entered the online pharmacy space.
While Reliance sells medicines online through its ecommerce platform JioMart launched last year, Amazon launched its online pharmacy service Amazon Pharmacy in Bengaluru in August last year, with plans to scale up the service to more cities in the near future. The Indian healthtech market is projected to reach a market size of $21.3 bn by 2025, from $5.2 bn in 2019.