Next Tuesday, September 9, at 9 a.m., Oncoclínicas will seek a new infusion of capital. Shareholders will gather in an extraordinary meeting to vote on a cash call vital to keep Brazil’s largest oncology network running.
Oncoclínicas has persistently drained funds. In 2023, it carried out its first follow-on, raising about R$900 million from local and foreign investors. In May 2024, it approved a R$1.5 billion capital increase, with Banco Master alone contributing R$1 billion. Fitch has already cut the company’s rating. Since its 2021 IPO, the stock has lost more than 80%.
Backed by Goldman Sachs, which once owned 60% of the company, Oncoclínicas expanded rapidly: more than 140 units, a footprint across several markets, and heavy bets on costly, complex cancer treatments. But in Brazil, much of that depends on private insurers tightening reimbursements — and on the public health system to cover procedures.
The reckoning is here. Over the past three years, working capital consumed an average 77% of EBITDA — and 130% including interest. In 2Q25, organic cash burn deepened, driven by discontinued clients, a heavy interest bill and elevated capex. The debt schedule is unforgiving: more than R$2.5 billion comes due between 2025 and 2027.
To complicate matters, Banco Master, which today owns 15%, last week had its planned sale to Banco de Brasília (BRB) blocked by Brazil’s Central Bank. And last month, in a telling move, the board amended indemnity agreements to shield executives while approving pay packages amid plunging shares and shrinking liquidity.
The verdict is harsh: Oncoclínicas is gasping for air, and every new infusion risks suffocating its shareholders.