Healthcare Global Enterprises (HCG) is focused more on oncology, Ajaikumar, executive chairman, told CNBC-TV18. Ajaikumar also said that the company decided to divest provided it gets the oncology labs back.
The company divested a 38.5 percent stake in Strand Life Sciences to Reliance Industries for Rs 157 crore. Healthcare Global also acquired the oncology hospital labs and clinical trials business from Strand for Rs 81 crore.
In 2017-18, Healthcare Global merged oncology labs into Strand along with their private equity investor Quadria Capital.
“We are very oncology-focused and with that in mind, we agreed to divest provided we get our labs back; whatever labs we had given we took it back along with contract research organization (CRO) business so that we can remain focused and develop oncology the way we want, in terms of genomics,” Ajaikumar said.
On business, he said, “We have pretty much bounced back to the pre-COVID levels except for the international business; international patients coming in is still slow, but it is catching up. As far as domestic oncology work is concerned, certainly, it has come back to the pre-COVID level. Most of the centres are now doing better and as we go forward, looking at the numbers we are seeing, it will be positive for HCG. This divestment will also add more revenue to our lab business.”
Disclosure: Network 18, which publishes cnbctv18.com, is a part of the Reliance Group.
For the entire management interview, watch the video