INDIA – Amazon’s partnership with Apollo Hospitals’ pharmacy business is a precursor to an equity stake sale in Apollo HealthCo, as General Atlantic, SoftBank, and a slew of private equity players are in talks to buy a minority stake in the vertical valued at close to US$3 billion, Moneycontrol has reported.
According to the sources, Apollo HealthCo, a wholly owned subsidiary of Apollo Hospitals, could raise close to US$500 million through the stake sale.
In response to emails, Apollo Hospitals stated that it “will continue to pursue capital raising plans.” General Atlantic and SoftBank did not respond.
Moneycontrol was the first to report on the Amazon partnership in November, which Apollo Hospitals only recently and formally announced.
The company recently stated in an exchange notification, “Apollo Pharmacies Ltd has decided to list its pharmacy products on www.amazon.in” (“Amazon India”). With this listing of Apollo Pharmacies products, Amazon India customers will have access to pharmacy products delivered by Amazon across India.“
The collaboration between Amazon and Apollo HealthCo aims to sharpen the pharmacy business’s omnichannel focus.
This will provide Amazon with the firepower it needs to compete with Reliance and Tata Group, both of which have entered the fray through acquisitions.
According to the sources, the non-exclusive nature of the partnership is a disappointment because others are now eyeing a stake in Apollo HealthCo, but the tie-up does give Apollo’s online pharmacy business a boost.
As a result of Reliance’s recent acquisition of Netmeds and Tata Digital’s acquisition of 1mg, the online pharmacy market is becoming increasingly competitive.
Amazon’s collaboration with a major offline player will heat up the market even more.
Last year, Apollo Hospitals Enterprises announced the merger of its online and offline pharmacies, as well as its telemedicine businesses, through a slump sale into 100% subsidiary Apollo HealthCo.
Meanwhile, Apollo Hospitals has announced a partnership with ‘The Clinic by Cleveland Clinic’ on Wednesday to launch international second opinion services for its patients.
Dr. Sangita Reddy, Joint Managing Director of Apollo Hospitals Group, stated that the initiative will ensure patients receive the best healthcare possible.
Doctors at Apollo Hospitals will be able to work with Cleveland Clinic experts to review complex cases and devise the best treatment plan.
“The association aims to bring together world class medical and surgical opinions,” said Dr Anupam Sibal, Group Medical Director at Apollo Hospitals.
According to Frank McGillin, CEO of The Clinic by Cleveland Clinic, the collaboration will enable Indian patients to work closely with their physician at Apollo Hospitals, who will be able to tap into the expertise of Cleveland Clinic’s physicians, according to a press release.
Patients who want a second opinion from an international doctor will have their medical records shared with The Cleveland Clinic, and a conference call will be scheduled between the international medical expert and doctors at Apollo Hospitals in the patient’s presence.
The international doctor will share his or her findings in the form of a written opinion with the doctor at Apollo Hospitals, who will then discuss and decide on the best course of treatment for the patient.
Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE