Strengthens investment in channels of the future to expand patient reach
Cipla Limited (BSE: 500087; NSE: CIPLA EQ; and hereafter referred to as "Cipla") announced today that it has agreed to further invest INR 42 crore (approx.) in digital tech company GoApptiv Private Limited (hereafter referred to as “GoApptiv”).
Founded in 2016, GoApptiv aims to revolutionize the healthcare and pharmaceutical space in India with its unique 'phygital' model that provides quality healthcare access to extra-urban and rural India.
In line with Cipla’s ambition to strengthen investments in channels of the future, this additional investment will further expand Cipla’s presence across the healthcare continuum, especially to the underserved population by enabling greater access to lifesaving treatments.
With the completion of this deal, Cipla’s total stake in GoApptiv will increase to 22.99% on a fully diluted basis. This is Cipla’s third investment in GoApptiv, which will be made in a combination of equity shares and compulsorily convertible preference shares. GoApptiv has experienced significant expansion in underpenetrated areas and product lines following prior investments by Cipla in 2022 and 2020.
Commenting on the development, Umang Vohra, MD Global CEO, Cipla Limited, said, “Our long-standing partnership with GoApptiv has helped us increase penetration in underserved rural areas of India and address critical healthcare gaps where pharmaceutical coverage is limited. As we advance in the era of technology-driven healthcare, this expanded investment will not only enhance our collective abilities to deliver patient-centric solutions, but also furthers our digitisation agenda to drive Cipla’s next phase of growth.”
GoApptiv’s use of technology to provide quality and affordable healthcare aligns with Cipla's commitment to making a positive impact on communities through innovative solutions. Cipla plans to continue supporting GoApptiv through further investment rounds, solidifying their partnership in addressing healthcare disparities in underserved regions of India.
This year in July, GoApptiv incorporated a wholly-owned subsidiary company — ‘Pactiv Healthcare’— with an objective to handle the manufacturing, development, production, purchase, and sale of pharmaceutical, healthcare and wellness products to significantly benefit the Rural markets platform aims to drive agile market access, optimise patient experiences, deliver organisational growth and empower every stakeholder in the healthcare ecosystem. With its combination of proprietary technology and on-ground field force, GoApptiv claims to have been able to reach: 27 States, 200,000+ villages, 3,424 markets, 3,100 Tehsils, 618 districts.
The company explains – "The Indian Healthcare Industry is at the cusp of a "digital revolution". However, while physicians and patients are individually adapting to 'digital', healthcare companies have been slow to embrace innovation. Traditional pharma companies tend to implement digital solutions in silos, and even these limited efforts are focussed solely on urban markets. The reason for this is that, extra-urban and rural markets are extremely fragmented and highly unstructured, therefore setting these companies back with significant costs (major entry barrier). GoApptiv has taken a lead in developing "smart-shared platforms" that address this gap. The company's end-to-end solutions provide the digital infrastructure required to enable pharma companies to expand their footprint with cost efficiency and speed to market by leveraging economies of scale."
In line with Cipla’s ambition to strengthen investments in channels of the future, this additional investment will further expand Cipla’s presence across the healthcare continuum, especially to the underserved population by enabling greater access to lifesaving treatments.
With the completion of this deal, Cipla’s total stake in GoApptiv will increase to 22.99% on a fully diluted basis. This is Cipla’s third investment in GoApptiv, which will be made in a combination of equity shares and compulsorily convertible preference shares. GoApptiv has experienced significant expansion in underpenetrated areas and product lines following prior investments by Cipla in 2022 and 2020.
Commenting on the development, Umang Vohra, MD Global CEO, Cipla Limited, said, “Our long-standing partnership with GoApptiv has helped us increase penetration in underserved rural areas of India and address critical healthcare gaps where pharmaceutical coverage is limited. As we advance in the era of technology-driven healthcare, this expanded investment will not only enhance our collective abilities to deliver patient-centric solutions, but also furthers our digitisation agenda to drive Cipla’s next phase of growth.”
GoApptiv’s use of technology to provide quality and affordable healthcare aligns with Cipla's commitment to making a positive impact on communities through innovative solutions. Cipla plans to continue supporting GoApptiv through further investment rounds, solidifying their partnership in addressing healthcare disparities in underserved regions of India.
This year in July, GoApptiv incorporated a wholly-owned subsidiary company — ‘Pactiv Healthcare’— with an objective to handle the manufacturing, development, production, purchase, and sale of pharmaceutical, healthcare and wellness products to significantly benefit the Rural markets platform aims to drive agile market access, optimise patient experiences, deliver organisational growth and empower every stakeholder in the healthcare ecosystem. With its combination of proprietary technology and on-ground field force, GoApptiv claims to have been able to reach: 27 States, 200,000+ villages, 3,424 markets, 3,100 Tehsils, 618 districts.
The company explains – "The Indian Healthcare Industry is at the cusp of a "digital revolution". However, while physicians and patients are individually adapting to 'digital', healthcare companies have been slow to embrace innovation. Traditional pharma companies tend to implement digital solutions in silos, and even these limited efforts are focussed solely on urban markets. The reason for this is that, extra-urban and rural markets are extremely fragmented and highly unstructured, therefore setting these companies back with significant costs (major entry barrier). GoApptiv has taken a lead in developing "smart-shared platforms" that address this gap. The company's end-to-end solutions provide the digital infrastructure required to enable pharma companies to expand their footprint with cost efficiency and speed to market by leveraging economies of scale."
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