Janus Henderson further downgrades PharmEasy valuation to $ 2.7 billion

Asset management company Janus Henderson has further downgraded its investments in the online pharmacy, PharmEasy's parent entity, API Holdings, The Economic Times (ET) reported citing details of regulatory filings with the US Securities and Exchange Commission (SEC).

Janus Henderson valued its investments in the pharmacy startup at $2.7 billion as of March 31, 2023, which is less than half of what it was in September 2021 when it stood at $5.6 billion. The latest valuation estimates were notified to the US securities regulator in a May 30 filing, the report said.

Recently, in its filing with the SEC on May 30, the asset manager had valued its investments in PharmEasy at $2.8 billion as of December 31, 2022.

PharmEasy could not live up to the loan covenant terms for its high-cost debt from Goldman Sachs, and because of this reason, Janus Henderson has decided to further downgrade its investments in the company, the ET report said.

Janus Henderson is not alone in marking down its valuation in PharmEasy. Another investor, Neuberger Berman, also downgraded its investments in the company to $4.4 billion as of February 28.

Asset Management companies review their portfolio companies on a periodic basis and come up with revised valuations. The evaluation is based on, but not limited to, the company's performance, market outlook etc.

Several other Indian startups, such as Meesho, Swiggy, Byju's, Pine Labs, and Ola, have seen similar cuts in their valuations. Investors like Invesco, Blackrock, Fidelity, and Vanguard have revised their valuations for these companies, resulting in downgrading.

During its last funding round, PharmEasy was valued at $5.6 billion. It raised around $350 million on that valuation from investors like Singapore-based Amansa Capital, ApaH Capital, and Janus Henderson, among others, ET reported.