Alkem MedTech is strategically acquiring a 51–55% stake in Occlutech Holding AG, a global player in minimally invasive cardiac devices, for a total equity value of € 180.70 Mn (Rs. 19,516 million). This move establishes Alkem’s presence in the global cardiovascular market, leveraging Occlutech’s leadership in the Structural Heart Occluder space. The transaction, funded by internal accruals, is expected to close by June 2026, marking a major step in Alkem’s expansion strategy.
Alkem MedTech Announces Strategic Move into Cardiovascular Space
Alkem Laboratories Ltd. has formalized its intent to significantly expand its MedTech footprint by executing a binding term sheet to acquire a controlling 51–55% stake in Occlutech Holding AG. This strategic investment aims to establish Alkem MedTech as a growth enabler for the Alkem Group by entering the high-growth global cardiovascular device market.
Occlutech: A Platform for Global Cardiovascular Expansion
Occlutech, founded in 2003, provides an immediate platform into this complex segment. The company specializes in devices for structural heart defects and holds a leading position, ranking 3rd globally and 2nd in Europe in the Occluder space. Key areas include:
- Market Reach: Operates in 20+ developed countries, with 70% of sales originating from Western Europe, USA, and Japan.
- Financials: Reported net sales of € 50 Mn as of Jan-Dec 2025, achieving a 14% CAGR (2021-25).
- Product Portfolio: Offers a complete portfolio for minimally invasive cardiac procedures, including ASD, PFO, PDA, and AFR devices.
Transaction Terms and Financial Overview
The strategic investment has a total equity value of € 180.70 Million (equivalent to Rs. 19,516 million, based on an assumed EUR/INR rate of 108). The acquisition will be funded entirely through internal accruals and current cash balance. Regulatory approvals are anticipated to be secured, allowing the transaction to be completed by June 2026.
Rationale for Acquisition
The acquisition aligns perfectly with Alkem MedTech’s purpose of advancing medical technology solutions. Key benefits identified include:
- Leadership: Accessing Occlutech’s leading position in the Structural Heart Occluder market (#2 in Europe, #3 Globally).
- Product Completeness: Integrating a complete portfolio of cardiac devices compliant with the highest quality standards (FDA, CE, TGA certifications).
- Synergies: Utilizing Alkem’s brand, global footprint, and operational excellence to drive efficiencies and leverage operating leverage.
Future Focus Areas for Alkem MedTech
Post-acquisition, Alkem MedTech plans to focus on four core pillars to ensure sustained growth and act as a growth enabler for the larger Alkem Group:
- Global Presence & Comprehensive Portfolio: Expanding reach, supported by the existing musculoskeletal base and the new cardiovascular asset.
- Continuous Product Innovation & High Quality Products: Leveraging Occlutech’s 200+ active patents and in-house R&D capabilities in Germany and Istanbul.
- Manufacturing Capabilities: Strengthening the ecosystem through vertical integration, supported by a backward integrated plant.
- Centre of Excellence: Focusing on Skill Development through the new Alkem MedTech Learning Lab.
Musculoskeletal Progress Update
In parallel, the Musculoskeletal segment continues its hybrid approach. The launch of Knee and Hip implants is targeted for Q2 FY27 and Q4 FY27, respectively, following technology transfer with Advita Ortho. The segment aims for 10% Market Share in the large joints market in India by its 5th Year, supported by a target of 250 K+ implants sold within five years.
Alkem Laboratories: Group Scale
This strategic move is backed by the robust foundation of Alkem Laboratories, which stands as the 5th Largest Pharma company in India by market share. Key group figures for FY24-25 include Revenue of Rs. 129,645 Mn and EBITDA of Rs. 25,122 Mn, with a global footprint spanning 40+ countries.
Source: BSE
