Tag: healthcare

Fortis Healthcare’s board to meet on May 10

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fortis Healthcare today said its board will meet on May 10 to take a decision on the binding bids for the company as recommended by the expert advisory committee.

The committee will evaluate all binding bids received by the company till forenoon of May 1, it said in a filing to BSE.

The board has decided that the expert advisory committee (EAC) will consist of two members – Deepak Kapoor and Lalit Bhasin, it added.

The EAC will only consider evaluating all binding bids whether the current / improvised / modified or new) received by the company till 12 noon on May 1, it said.

“In line with the obligations towards Manipal and TPG consortium, if any new or modified binding bids are received anytime till 12.00 Noon on May 01, 2018; Manipal and TPG consortium have the ability to revise their offer till May 6,” it added.

The board on May 10 will meet to consider the recommendations of EAC. It continues to be advised by Cyril Amarchand Mangaldas as legal advisor and Standard Chartered Bank as the financial advisor, Fortis Healthcare said.

In addition, the board has instructed the management to appoint a second independent financial advisor to assist and advise the board with respect to the bids, it added.

The board has also decided to hold an extraordinary general meeting of the company on May 22 at Air Force Auditorium, Delhi, at 10 AM to consider the resolutions proposed by National Westminster Bank Plc as Trustee of Jupiter India Fund, East Bridge Capital Master Fund Ltd and East Bridge Capital Master Fund I Ltd, its shareholders, Fortis Healthcare said.

These shareholders – apart from appointment of three directors – have also sought removal of Brian Tempest, Harpal Singh, Sabina Vaisoha and Lt Gen Tejinder Singh Shergill from the board.

The board in its meeting also approved the appointment of Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee, it added.

The company has already received binding offers from four entities – KKR-backed Radiant Life Care, Malaysian major IHH Healthcare, Manipal/TPG consortium and Munjal and Burman family offices.

While Manipal Health Enterprises again revised its offer for Fortis Healthcare on April 25, raising the value of the hospitals business to Rs 6,322 crore.

KKR-backed Radiant Life Care has also made a revised bid for Fortis Healthcare Ltd (FHL) with a binding offer to acquire its Mulund hospital for an enterprise value of Rs 1,200 crore.

Malaysian major IHH Healthcare has also revised its proposal and made a binding offer to immediately infuse Rs 650 crore in the Indian firm as part of an overall proposal to invest Rs 4,000 crore.

Besides, FHL has received a binding offer from Hero Enterprise Investment Office and Burman Family Office. Group entities of Hero Enterprise Investment Office led by Sunil Kant Munjal and the Burman family of the Dabur Group currently hold around 3 per cent stake in the healthcare chain.

FHL had also received an unsolicited non-binding expression of interest from Fosun Health Holdings, an arm of Fosun International, with a proposal of primary infusion at a price up to Rs 156 per share up to a total investment of $ 350 million (over Rs 2,295 crore).

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Renuka Ramnath resigns from Fortis expert panel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fortis Healthcare said that Renuka Ramnath, former MD and CEO of ICICI Venture, has resigned from the expert committee set by the healthcare major to evaluate binding proposals and make final recommendations to the board.

In a regulatory filing, Fortis Healthcare Limited (FHL) said it has received resignation of Ramnath, wherein she excused herself from being the member of the committee due to her pre-occupation.

“The same will be tabled before the board at the scheduled meeting on April 26, 2018 for their consideration and vacancy so caused shall be filled, by the board of directors, with a person of eminent repute,” it added.

The committee is headed by Deepak Kapoor, former chairman and CEO of Price Waterhouse Coopers, India.

The other members of the panel included Ramnath and Lalit Bhasin, president, Society of Indian Law Firms & Managing Partner, Bhasin & Co.

Last week, FHL had approved evaluation of only binding offers and formed an expert committee to evaluate the proposals and make a final recommendation by April 26.

On the basis of the decision by the board, the final proposal will be put forward to the shareholders for their approval.

Already, four entities — KKR-backed Radiant Life Care, Malaysian major IHH Healthcare, Manipal/TPG consortium and Munjal and Burman family offices — have given binding offers to FHL.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fortis to decide on bids as shareholders look to shake up board

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fortis Healthcare Ltd on Wednesday said multiple shareholders holding a stake of about 12 percent had called for an extraordinary general meeting to consider the appointment of three directors to the healthcare company’s board.

The call for a change came ahead of a board meeting to decide on the various bids Fortis has received.

Fund manager Jupiter Asset Management and East Bridge Capital Master Fund are looking to appoint Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee to the board as directors of the company.

The shareholders are also looking to remove  Brian Tempest, Harpal Singh, Sabina Vaisoha, and  Lt. Gen. Tejinder Singh Shergill as directors of the Company.

Earlier this month, East Bridge Capital Master Fund had raised its stake in Fortis by 3.86 percent to 9.73 percent, in a deal worth Rs 256 crore.

Fortis also received an improved binding offer from Munjals and Burmans. The two companies have proposed to invest Rs 1,500 crore directly into the company by putting in Rs 500 crore via preferential issue of equity shares, and Rs 1,000 crore via preferential issue of warrants.

The Rs 500 crore preferential issue can be utilised to pay the employees and repay loans.

Radiant Hospitals is also looking to buy assets worth Rs 500 crore housed under Singapore based RHT Trust to expand its operations in metro cities, the Economic Times reported.

The company, which is backed by private equity firm KKR, is expected to submit its bid next week, the report added.

On Monday, Fortis had said its board will meet this week to evaluate the competing bids from three suitors for its hospitals business.

Last week, the contest for securing the hospitals business intensified after Fortis has received two binding offers.

The first was a revised offer from Manipal Hospital Enterprises and the second was a joint binding offer from Sunil Kant Munjal’s Hero Enterprise Investment Office and the Burman family of Dabur.

IHH Healthcare of Malaysia also threw its hat in the ring with a non-binding expression of interest.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Johnson & Johnson tops 1Q expectations on broad sales bump

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Health care giant Johnson & Johnson’s first-quarter revenue jumped 12.6% as sales rose across its three business segments, but much-higher spending and one-time charges trimmed its net income by 1.2%. The results still beat Wall Street expectations.

The maker of baby products, medical devices and blockbuster immune disorder drug Remicade on Tuesday reported revenue of $20.01 billion, topping analyst projections for $19.48 billion, according to a poll by Zacks Investment Research.

The New Brunswick, New Jersey, company reported net income of $4.37 billion, or $1.60 per share, down from $4.42 billion, or $1.81 per share, in 2017’s first quarter.

Excluding $1 billion in writedowns on the value of assets and $300 million in other one-time charges, adjusted income came to $5.54 billion, or $2.06, a nickel better than expected.

“Our pharmaceutical business continues to deliver robust growth and we are pleased with the improvement in our consumer business,” Johnson & Johnson Chairman & Chief Executive Officer Alex Gorsky said in a statement.

“The U.S. tax legislation passed late last year is creating the opportunity for us to invest more than $30 billion in R&D and capital investments in the U.S. over the next four years,” an increase of 15%, Gorsky added.

In the first quarter, J&J increased spending on research and development by 16%, while spending on production jumped 22% and spending on marketing and administration rose nearly 11%.

Marketing and production costs were higher partly because of the launch of its new severe psoriasis drug, Tremfya, approved last summer. The company also had another medicine, Erleada for prostate cancer, approved on Feb. 14.

The world’s biggest maker of health care products reported that overseas sales jumped 20%, buoyed by favorable currency exchange rates.

“They did just okay on an operating basis when you strip out growth bought via acquisitions,” said Erik Gordon, a professor and pharmaceuticals analyst at University of Michigan’s Ross School of Business, adding, “The good news is that some of their newer products with patent life left in them are selling well.”

Johnson & Johnson forecast full-year earnings in the range of $8 to $8.20 per share, with revenue in the range of $81 billion to $81.8 billion.

In premarket trading, shares rose $1.16, or 0.9%, to $133

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IHH makes non-binding offer for Fortis Healthcare

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Malaysia-based IHH Healthcare Bhd  has taken the plunge and made a much anticipated counter offer for Fortis Healthcare, according to sources, as the fight for Fortis Healthcare intensified.

IHH reached out to the Fortis board last evening with a non-binding offer. The company is looking to conduct a due diligence to give a definitive bid to buy Fortis Healthcare.

The Fortis Healthcare stock gained in trade on the back of the counter offer. Sources said, given that, IHH has proposed to buy Fortis for around $1.3 billion, the share price is likely to be up to Rs 160/share.

IHH’s offer is at a premium to the binding bid given by Manipal Hospitals backed by PE firm TPG.

When contacted, Fortis Healthcare declined to comment.

An IHH spokesperson also declined to comment. “We decline to comment. We will make appropriate announcement(s) should there be any material developments.”

IHH’s offer to buy Fortis Healthcare comes soon after Manipal Hospitals sweetened its offer to make the deal palatable to the shareholders of Fortis Healthcare.

Reports suggest that East Bridge Capital, along with other minority shareholders, had opposed the original deal announced by Fortis and Manipal.

IHH’s investments in India:

IHH was the second largest shareholder in Apollo Hospitals, with a 10.85% stake in the company, and had invested $44.23 million into the healthcare company in 2005.

By May 2017, however, IHH exited the entire investment in Apollo with returns of $288 million, an amount worth about six times its initial investment. The company maintains two joint-venture facilities with Apollo in Kolkata and Hyderabad.

In April 2005, IHH had taken a majority stake in Continental Hospitals, a 750-bed super specialty facility, for Rs 300 crore. It was the first direct acquisition for IHH in the country.

IHH also acquired a 73.4% stake in the Hyderabad-based Global hospitals for Rs 1,284 crore, in August 2015 . Global has around 5 hospitals in Hyderabad, Mumbai, Bengaluru, and Chennai, with a total of about 1100 beds.

Ironically, IHH had acquired the Parkway Pantai Group, the crown jewel in its investments abroad, after a prolonged battle with Fortis.

Globally, IHH has around 8,000 beds across 45 hospitals in 10 countries. The company merged all healthcare assets, including Pantai in Malaysia, before public listing in 2012.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Manipal Hospitals raises bid for Fortis hospital business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Manipal Hospitals Enterprises Private Ltd raised its offer to buy rival Fortis Healthcare Ltd’s hospital business by about a fifth in an attempt to win over minority shareholders opposed to the deal.

The new offer values Fortis’ hospital business about 21 percent higher at 60.61 billion rupees ($933.3 million), or 116 rupees per share, Manipal Hospitals said in a statement late on Tuesday.

Manipal first offered to buy Fortis last month in a deal that would combine its 14 hospitals with Fortis’s portfolio of 34 hospitals, creating a 150 billion rupees company and formidable rival to Apollo Hospitals Enterprise Ltd.

But the previous bid, which offered shareholders 10.83 shares in the combined company for every 100 Fortis shares held, was panned by investors. It knocked Fortis stock down 14 percent on the day the deal was announced and prompted Chief Executive Bhavdeep Singh to make conciliatory comments about keeping minority shareholders’ concerns in mind.

The old offer met with disapproval from shareholders including major Indian equity investor, Rakesh Jhunjhunwala, the Economic Times newspaper reported.

Manipal said as per the new offer, existing Fortis shareholders will roughly own half of the new company.

Under the previous terms, Manipal Chief Executive Ranjan Pai would have owned about 38 percent of the new company, which would be listed on Indian stock exchanges. U.S. buyout firm TPG was expected to hold 20.7 percent.

Manipal‘s statement on Tuesday did not mention how much of the new company Pai or TPG would own.

“We hope that our revised offer addresses the concerns certain Fortis shareholders had raised and believe this offer is in the interests of all stakeholders, including Fortis’ shareholders,” Pai said.

Fortis shares were trading down 0.2 percent as of 0437 GMT after having risen as much as 3.6 percent early in the session.

Also Read: Manipal hospital chief looks to shore up shareholder support for Fortis deal

A deal will take some pressure off Fortis, which has been under a cloud as authorities investigate whether its founders, brothers Malvinder Singh and Shivinder Singh, who are no relation to the CEO, took funds from the company. The brothers have denied the allegations.

For Manipal, a deal would mean greater access to India’s burgeoning healthcare market, estimated by Deloitte to grow three-fold to $372 billion by 2022.

Private Indian healthcare companies have grown rapidly in recent years, boosted by increasing demand for better healthcare in an under-resourced public health system.

Manipal also said on Tuesday it expects to buy a 30.9 percent stake in Indian diagnostics chain SRL Ltd, which is partly owned by Fortis. Manipal plans to fold SRL into the new company.

($1 = 64.9400 Indian rupees)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pharma poised for another painful quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharma companies are expected to post another set of subdued earnings in the quarter ended March because of severe price pressure in the US and outstanding regulatory issues, especially by The Food and Drug Administration (USFDA) on plants.

Analysts expect low single digit revenue growth, with revenues from the US – a vital market – likely to decline for the fifth consecutive quarter due to faster drug approvals resulting in more competition and consequently pressure on price margins.

Analysts are factoring in a 2-5% decline in the US revenues on a constant currency basis (exchange rates that eliminate the effects of exchange rate fluctuations when calculating financial performance numbers).

According to them, companies such as Sun, Lupin and Glenmark could face tough competition in the US this quarter. Others such as Cadila and Natco are likely to perform relatively better because these companies sell the generic version of an antiviral drug named Tamiflu and the US has experienced a bad flu season.

For pharma companies, domestic markets should perform better though. Expect up to 10% growth due to normalising of operations post GST and a favourable year-on-year base due to demonetisation.

Margins for most companies are expected to stay flat or decline. The pressure on margins will be due to pricing pressure in the US along with remediation costs for some companies. On remediation, commentary on the status of outstanding regulatory issues will be key.

The focus will be on Sun Pharma’s Halol, Dr Reddy’s’ Srikakulam API, Aurobindo’s injectables and Alkem’s Daman plant. The street will also await commentary on whether the pricing pressure has bottomed out and what FY19 has in store for these companies.

Overall, don’t be surprised if it turns out to be another sedate quarter.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How to keep track of your health on World Health Day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prevention is better than cure and this World Health Day on Saturday, take tangible steps to secure the health of yourself and your family.

Gowri Kulkarni, Head of Operations at DocsApp and clinical psychologist Mamta Harish Iyer share tips to help you manage your family’s health better.

Complete health check: When was the last time your family and you got a complete check-up done? If the answer is more than six months back, it’s time to visit the doctor again.

Regular medicines: If you have conditions such as thyroid deficiency, high or low blood pressure or calcium or iron deficiency, you may require regular supplements to be taken. Keeping track of your usage, not forgetting your dose and even getting medicines regularly from the market can be quite painful. Technology can help through this as well — set daily reminders for your family member or yourself on smartphones to make sure a dose isn’t finished.

Mental health support: Visits to psychologists can be inconvenient and difficult for people suffering from mental health concerns. Technology-driven solutions that connect your family and you conveniently to a therapist via a phone or computer are ideal to provide the kind of mental health support your family needs.

Sexual health and hygiene: Like mental health, sex is a taboo subject. It is essential for you to make your family aware of the most common sexual health problems and how to deal with them. However, given the sensitive nature of the subject, people are hesitant to see specialists. Through apps and other health networks and technologies, people can discreetly and conveniently get their most personal and intimate questions about sexual health and hygiene answered by some of the best specialists in India.

Diet management: The old myth that you are what you eat is like most clichés annoyingly true. Consulting a nutritionist for your family and choosing the foods that fill your grocery baskets based on their health situation and requirements can help in creating the right kind of family diet that boosts immunity and health for everybody

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow