Aknamed, a cloud-based healthcare supply chain platform in India, has acquired pharmaceutical products distributor Vardhman Health Specialties. It bought the company for $35 million, according to a report.

WHY IT MATTERS

In a joint statement, the companies said the combination comes at a time of "high demand" for medical supplies. "[T]he need of the hour is to build a strong healthcare supply chain management in the country," they said.

The companies will work towards building a "robust hospital-focused supply chain in India", leveraging technology, data, high-quality infrastructure and scale.

Besides distribution, Vardhman also develops medical devices, as well as healthcare platforms that run on new technologies, such as artificial intelligence and the internet of things.

"I am excited about the combination of Aknamed and Vardhman as it will solve a significant number of procurement challenges, and will broaden the horizon of healthcare supply chain in India," said Aknamed co-founder and Chairman Mahadevan Narayanamoni.

Aknamed's supply chain platform enables hospitals to simplify, optimise and monitor procurement and consumption using cloud-based technology and backed by a national infrastructure and a comprehensive product basket.

THE LARGER TREND

This is the third pharmaceutical distributor that Aknamed has added to its portfolio over the past year. Its acquisitions are part of its vision to become India's largest healthcare supply chain platform.

Aknamed is targeting to expand to 35 locations across India by year end from 16 sites at present. Over the next two years, it will continue to invest "significant" additional capital to supercharge its growth.

Meanwhile, in the UK, MediConnect and Rishabh Software have partnered to build a blockchain-based platform to manage the supply chain for ordering personal protective equipment and medications.

ON THE RECORD

"This partnership underlines the growing importance of consolidation in the pharma supply chain industry in India. It opens up significantly larger opportunities, apart from the synergies derived from the combined businesses of Vardhman and Aknamed. The improved value proposition for our clients and stakeholders will allow us to serve them better. The combination propels us to an unequivocal leadership position to tap the large growth potential of the Indian market," said Vardhman CEO Naresh Chowhan.

"We are delighted to welcome Vardhman as part of the Aknamed Group. The vision of Aknamed has always been on delivering excellence in customer service, transparent business processes and practices with all stakeholders, and developing exceptional technology-based supply chain processes in niche and therapeutic areas," Aknamed founder and CEO Saurabh Pandey said.

"The focus is now to provide a top-notch supply chain service to the hospitals across the country," he added.