Mumbai: International medical know-how main Siemens Healthineers plans to exit the Hyderabad-based cancer care chain American Oncology Institute (AOI), a number of sources conscious of the event instructed ET. The deal is anticipated to worth the hospital chain round ₹1,500-2,000 crore.
Funding financial institution Alvarez & Marsal is advising Siemens on the transaction. A number of non-public fairness funds have been approached, and Healthcare International Enterprises (HCG)-a KKR-backed listed cancer care chain-has additionally been sounded out as a possible bidder, mentioned the sources cited above.
Non-binding bids ought to are available by the top of June, mentioned the individuals cited above. AOI at present operates 16 hospitals throughout India with a mixed capability of round 500 beds. It additionally runs a facility in Sri Lanka and maintains partnerships with main hospital teams, together with Fortis, in Punjab. Its flagship hospital is in Hyderabad.
The potential sale comes amid broader strategic discussions inside Siemens Healthineers. Bloomberg reported final 12 months the corporate was in preliminary talks with main non-public fairness corporations, together with Blackstone, CVC Capital Companions, and KKR, relating to a attainable sale of its world diagnostics enterprise in a deal that might exceed 6 billion (roughly $7 billion).
Based in 2012 by a gaggle of physicians and business professionals, AOI was operated by Cancer Therapy Companies Worldwide (CTSI). CTSI was acquired by Varian Medical Programs in 2019 from non-public fairness agency TPG Development. Subsequently, in 2021, Siemens Healthineers acquired Varian, bringing AOI below its portfolio.
Sources point out that Siemens considers AOI a non-core asset and doesn’t intend to proceed working the chain in India.
Each Siemens and HCG declined to touch upon the event.
Siemens Healthineers primarily focuses on diagnostic imaging (together with MRI and CT scans), laboratory diagnostics, therapeutic imaging, and digital well being options. The corporate operates two manufacturing services in India-one in Vadodara for diagnostics and one other in Bengaluru for medical imaging merchandise.
Cancer Incidence
The Indian cancer care market is witnessing speedy progress. It was valued at round ₹1.25 lakh crore in 2024 and is projected to increase at a compound annual progress fee (CAGR) of 10-12% over the approaching years. Cancer incidence is rising steadily, with some estimates suggesting that the precise variety of circumstances could also be as much as 3 times greater than the formally recorded 2 million recent detections in 2022, in keeping with an EY report.
The rising illness burden is rising demand for superior but reasonably priced therapy choices.
This development can also be driving important non-public funding and growth in specialised cancer care services throughout the nation.
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