In a landmark move poised to reshape India’s diagnostics landscape, Metropolis Healthcare Ltd, the country’s second-largest pathology lab chain, has announced its acquisition of a 100% stake in Core Diagnostics for INR 247 crore. This strategic acquisition, approved by Metropolis’ board, underscores the company’s commitment to expanding its advanced cancer diagnostics capabilities while strengthening its presence in northern and eastern India.

The transaction will be executed through a combination of cash (55%) and equity shares (45%), subject to shareholder approval. Metropolis anticipates the deal to conclude within 60 days, as it does not require additional government or regulatory clearances. Upon completion, Core Diagnostics will operate as a wholly owned subsidiary of Metropolis Healthcare.

Enhanced Oncology Focus

Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, emphasized the significance of the acquisition “Cancer is among the fastest-growing diseases globally, and India needs access to advanced cancer diagnostics. With this acquisition, we aim to become the leading cancer testing chain in the country.”

Founded in 2012, Core Diagnostics specializes in advanced oncology and high-end diagnostic solutions. Operating in 200 cities across India, the company has nine laboratories, including NABL and CAP-accredited facilities. Core Diagnostics reported a revenue of INR 110 crore for FY24 and is projected to reach an annual run rate of INR 120-122 crore for FY25.

This acquisition will elevate Metropolis’ oncology testing portfolio, increasing its contribution to overall revenue from 4% to 10%. Additionally, the share of specialized tests in Metropolis’ revenue mix is expected to rise from 37% to 41%.

Bridging Regional Gaps

The deal strategically complements Metropolis’ dominance in western and southern India with Core’s strong presence in the northern and eastern regions.
“This acquisition allows us to connect with leading hospitals and expand our market reach in these regions,” said Surendran Chemmenkotil, CEO of Metropolis Healthcare.

Core Diagnostics collaborates with over 6,000 specialty prescribers, including 1,600 cancer specialists, offering over 1,300 advanced diagnostic tests. The integration of Core’s expertise with Metropolis’ extensive portfolio of over 4,000 tests is expected to drive significant synergies and broaden patient access to high-quality diagnostics.

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Future Growth Trajectory

The acquisition aligns with Metropolis’ strategy to focus on niche areas of diagnostics and advanced scientific capabilities.
“We aim to reinforce our leadership in specialized testing and advanced cancer diagnostics through this strategic acquisition,” Shah added.

Dinesh Chauhan, CEO of Core Diagnostics, expressed optimism about the collaboration, stating, “With Metropolis’ reach and expertise, we are ready to make a larger impact on healthcare and touch more lives.”

Metropolis Healthcare shares rose by 2.39% following the announcement, closing at INR 2,187 on the BSE.

This acquisition not only cements Metropolis’ leadership in advanced diagnostics but also demonstrates its commitment to addressing the critical healthcare needs of India’s growing population.

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