Apollo HealthCo Demerger Explained | Finology

Apollo Hospitals Enterprise Ltd., India’s largest private hospital network and one of the country's most ambitious omnichannel healthcare platforms, recently announced a major structural change — the demerger of its pharmacy business. While on the surface, this may appear to be a move to streamline operations, a deeper dive into the business landscape, the pharmacy supply chain, and global benchmarks reveals a more layered narrative.

This week, the Finology Research Desk dug deep into Apollo’s evolving story. Here’s what we found.

What Makes the Healthcare Industry Special?

The healthcare industry occupies a unique position in every economy. Unlike discretionary sectors, healthcare isn’t a "nice to have"; it’s a “need to have”. Globally, healthcare expenditure tends to expand in tandem with economic growth. In 2020, healthcare spending as a percentage of global GDP stood at approximately 11%. Developed nations like the US, UK, France, and Germany registered even higher ratios.