Carlyle backed Indegene buys US-based marketing agency Culthealth​

Synopsis

The deal adds brand strategy and market development capabilities along with patient engagement platforms to Indegene’s offering, the company said

Bengaluru-based technology-led healthcare solutions provider Indegene has bought US-based healthcare marketing agency CultHealth in a bid to improve its portfolio ahead of its upcoming initial public offering.

Private equity firm Carlyle-backed Indegene acquired CultHealth through its subsidiary ILSL Inc. It did not disclose the size of acquisition.

The deal adds brand strategy and market development capabilities along with patient engagement platforms to Indegene’s offering, the company said in a statement.

“With CultHealth, our life sciences clients benefit from partnering with a single service provider, all the way from brand strategy through commercialization," said Manish Gupta, Executive Director and CEO, Indegene Private Limited.

New-York based CultHealth was founded in 2005. It is a full-service advertising and marketing agency that develops strategies, creative, and innovative tactics to build connections or “cult followings" between brands and their audience. It engages with life sciences companies at academic level to derive insights for brand campaigns and creatives.

Post the acquistion, CultHealth will retain its identity and will be positioned as ‘An Indegene company’, with their founders and management team continuing to run the company.

“The CultHealth team brings nuanced expertise in reaching patients and physicians with meaningful DTC (Direct To Consumer) and marketing efforts, with a special emphasis on therapeutic areas of diabetes and oncology," he added.

Indegene is also preparing for an IPO, where it is likely to raise ₹2500-crore. It had appointed bankers, JP Morgan India Pvt Ltd and Kotak Mahindra Capital Co Ltd last month. The firm had sales of $223 million in FY 2022.

Indegene was incorporated in 1998 and is engaged in research and experimental development in natural sciences and engineering. It has a global presence in the US, UK, Europe, China, Japan and India.

Last year, Indegene had raised $200 million from US-based investment firms Carlyle Group and Brighton Park Capital to boost acquisitions and drive global expansion plans.

Acquisitions have always been a key part of Indegene’s growth strategy. Last year in August, Indegene had acquired US-based Medical Marketing Economics LLC for about $10 million to strengthen its emerging biotech and medical offerings.

Prior to that, the company made seven strategic global acquisitions between 2012 and 2019. Prior to MME, it acquired UK-based DT Associates, a digital transformation and customer experience consulting firm, in 2019.

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