An online pharmacy known as PharmEasy has had a decline of its valuation to $45.6 million from the previous high of $560 million. This is also a drop of 18.57% from its last fundraising value in April 2024, when the company was valued at $560 million.
This emerged after TechCrunch reported that PharmEasy’s valuation had declined, as per its investor, Janus Henderson. Specifically, the investor said that its 12.9 million shares—which the company sold for $9.4 million—are now worth only $0.76 million.
PharmEasy New Funding but Declining Valuation
PharmEasy closed over $216 million in new funding earlier this year. However, this fundraising was effected at a cut of 90% from its peak, sending the company’s valuation to $560 million. It is substantially lower than the $600 million it paid for Thyrocare, a chain of diagnostic labs, in 2021 alone.
High Levels of Debt and Problems with IPOs
PharmEasy’s problems started from the time when it delayed an $843 million IPO that was expected in the fiscal year of 2021. The firm has since established difficult-to-manage credit risks; for instance, it had to absorb the stress of repaying $300 million from Goldman Sachs.
Measures to Mitigate Financial Issues
One of its major issues has been with regard to funding: PharmEasy sought to address this by floating a rights issue that netted the company $417 million. It gave the opportunity to obtain the company shares at cheaper prices to the current shareholders but acted as a dilution to others’ stock.
In 2023, yet another investor, Neuberger Berman, cut PharmEasy’s worth by 21 percent to $4.4 bn.
