Synopsis:
Poly Medicure jumped sharply after acquiring Italy-based Citieffe Group for Rs 324 crore. With this purchase, Poly Medicure is on its way to becoming an international player in the field of orthopaedics, which enables the company to access a patent-free portfolio with a presence in Italy, the US, Mexico, and distribution in over 25 countries.
The shares of this leading medical device manufacturer and exporter from India are in focus after making a key acquisition in Italy. In this article, we will dive more into the details.
With a market capitalisation of Rs 20,788 crore, the shares of Poly Medicure Ltd made a day’s high of Rs 2080.35 per share, up 5 percent from its previous day’s closing price of Rs 1981.35 per share. Over the past five years, the stock has delivered a robust return of 349 percent, outperforming NIFTY 50’s return of only 127 percent.
About the Acquisition
Poly Medicure Limited, one of India’s leading medical device companies, has announced the acquisition of Citieffe Group, marking its second acquisition within a month. Citieffe, based in Italy, specialises in orthopaedic trauma and extremities products and has a presence in Italy, the USA, and Mexico, with distribution across more than 25 countries.
The acquisition is being made through Medistream SA, which includes Citieffe SRL and its subsidiaries in the USA and Mexico. The total deal values the company at Rs. 324 crore (EUR 31 million).
Citieffe generated revenues of EUR 17.3 million (Rs 180 crore) and an EBITDA of EUR 3.1 million (Rs 32.24 crore) in 2024, growing 15 percent and 14 percent year-on-year respectively.
This deal gives Poly Medicure a footprint in the global orthopaedics market, especially in the trauma and extremities segment, which is the fastest-growing and most resilient category within orthopaedics. Citieffe brings a patented and fully accredited product portfolio, including 45 patents and approvals like EU MDR and FDA clearance for the US market.
Citieffe is already a strong player in its markets: the #2 independent company in Italy with around 12 percent market share, a top player in Mexico with a similar market share, and a growing presence in the US. Its business is fully integrated, from R&D and manufacturing to sales and distribution, allowing quick product innovations.
The acquisition also offers significant growth potential. Poly Medicure plans to leverage Citieffe’s platform to expand its US presence, enter the joint replacement market, and potentially manufacture products in India to reduce costs. Additionally, Poly Medicure’s global distribution network can help expand Citieffe’s reach in Europe and other markets.
Under the transaction, the existing management of Citieffe will continue, with Mr. Pascal Govi remaining as CEO. Poly Medicure is acquiring 100 percent of the company, including equity and shareholder loan liabilities, with a total upfront payout of around EUR 23 million (Rs 239 crore) and taking over EUR 8.1 million (Rs 84 Crore) in net debt.
The acquisition is subject to customary approvals and is expected to close within the next 4–8 weeks. This strategic move strengthens Poly Medicure’s global footprint in orthopaedics and adds a profitable and scalable business platform.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 403 crore, up by 5 percent from Rs 385 crore in the same quarter last year. However, on a sequential basis, revenue declined by 9 percent from Rs 441 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 26 percent to Rs 93 crore in Q1 FY26 as compared to Rs 74 crore in Q1 FY25. However, on a QoQ basis, it recorded a minor growth of 1 percent from Rs 92 crore.
The company has delivered an ROE and ROCE of 15.77 percent and 20 percent respectively, and is currently trading at a high P/E of 58.12x as compared to its industry average of 47.12x.
Poly Medicure Ltd is a leading medical device manufacturer and exporter from India, with its products sold in over 125 countries, making a significant global impact on healthcare.
With a robust portfolio of over 200 medical devices and more than 330 patents, Polymed offers a comprehensive range of medical devices across 12 medical therapies, including infusion therapy, vascular access, dialysis and renal care, critical care, cardiology, oncology, transfusion, diagnostics, gastroenterology, anaesthesia and respiratory care, urology, and surgery and wound management.
Supported by 12 state-of-the-art manufacturing facilities across 4 countries, Polymed has the capacity to produce over 1.8 billion medical devices annually, meeting the ever-growing global demand. The company’s diverse product offering ensures it addresses a wide range of medical needs worldwide.
Written by Satyajeet Mukherjee
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