Eris Lifesciences Ltd, a Mumbai-listed pharmaceutical company backed by private equity firm ChrysCapital and Kuwait Investment Authority, has agreed to purchase Biocon Biologics Ltd’s dermatology and nephrology branded formulations business units in India for Rs 366 crore.
The business includes over 20 mother brands. Its revenue for the financial year through March 2023 stood at Rs 90 crore.
The transaction is expected to achieve financial closure by the end of 2023, and will be partly funded via debt financing.
On Wednesday, Eris’s share price climbed 4.13% to Rs 905 apiece.
This is a strategic addition to Eris’ flagship cardiometabolic business and post deal Eris will offer end-to-end care to patients starting with diabetes/hypertension and all through to chronic kidney disease (CKD), Eris said in a filing with the Bombay Stock Exchange.
The transaction will also see leadership and the entire field force of this business, which consists of more than 120 personnel, move to Eris.
Eris had earlier entered the neuropsychiatry vertical in 2017 with the acquisition of Strides Shasun’s domestic business. The company marked a foray into the dermatology space last year after it purchased Oaknet Healthcare, followed by acquisitions of brand portfolios from Glenmark and Dr. Reddy’s in early 2023.
“The acquisition of Biocon Biologics’ nephrology and dermatology branded formulations businesses in India is in line with our strategic goals as well as our capital allocation framework,” said Amit Bakshi, chairman and managing director of Eris Lifesciences Ltd.
Post the divestment, Biocon will look to focus on its key focus areas. “This divesture of non-core assets allows Biocon Biologics to unlock value within our Branded Formulations portfolio in India and sharpen focus on our core therapy areas like Diabetes, Oncology and Immunology,” said Shreehas Tambe, chief executive officer and managing director of Biocon Biologics Ltd.
Founded in 2007, Eris Lifesciences has a pure-play domestic branded formulations business model. It claims to have an India distribution network of over 2,000 stockists and more than 5 lakh chemists. It employs 5,000 employees in its offices in Ahmedabad and Mumbai.
Its consolidated revenue in the financial year ended March 2023 increased to Rs 1,685 crore from Rs 1,347 crore in the fiscal before. On the other hand, its net profit decreased 8% to Rs 374 crore in FY23 from Rs 408 crore in the previous year.
