Drugmaker Eris Lifesciences Ltd has acquired nutraceuticals maker UTH Healthcare Ltd for Rs 12.85 crore ($1.96 million) in cash.
Eris said in a stock exchange filing that the acquisition provides a portfolio of products which complement its offerings.
UTH Healthcare, which has become a wholly owned subsidiary of Eris, was set up in 2011. It offers pharmaceutical and nutraceutical products for obesity, diabetes, maternal nutrition and cardiovascular diseases.
The company was earlier known as Emcure Uth Healthcare Ltd. In October 2015, Emcure Pharmaceuticals Ltd divested its 63% stake in UTH Healthcare. As of 31 March 2016, the company was owned by chairman Arunkumar Khanna and his family, according to VCCEdge, the data research platform of News Corp VCCircle.
UTH Healthcare registered revenue of Rs 25.57 crore in 2016-17, up from Rs 18.99 crore the year before.
Eris Lifesciences offers products in chronic therapy segments such as cardiovascular and anti-diabetes, and specialty segments like vitamins, gastroenterology, women’s health and bone health.
The drugmaker made its stock market debut in June after a public offering that comprised a share sale by founders and other shareholders including ChrysCapital. The PE firm sold its entire 16.25% stake through the IPO and got around 75% of the proceeds that totalled around Rs 1,741 crore ($269 million).
The UTH Healthcare deal is the first acquisition by Eris since going public. In December 2016, Eris Lifesciences had increased its stake in Kinedex Healthcare Pvt. Ltd from 61.48% to 75.48%. In August 2016, the company signed an agreement with Amay Pharmacuticals Pvt. Ltd to acquire trademarks of 40 brands for Rs 32.87 crore and a non-compete fee of Rs 5 crore to strengthen its cardiovascular and anti-diabetics therapeutic segments.