Indian pharma player Eris Lifesciences Ltd has signed a definitive agreement with Biocon Biologics Ltd to acquire its Branded Formulations’ India (BFI) business units of nephrology and dermatology, the company informed exchanges on November 8.
The deal consideration is Rs 366 crore inclusive of working capital conveyed as part of the deal. It will be funded partly through debt financing. The transaction is expected to achieve financial closure by the end of 2023.
The business includes over 20 mother brands with FY23 revenue of Rs 90 crore and current revenue run-rate of Rs 100 crore. The key leadership and entire field force of this business, consisting of over 120 personnel are expected to move to Eris after the deal.
The acquisition of two of Biocon’s BFI business units in India marks the entry of Eris into Nephrology. This is a strategic addition to Eris’ flagship cardio metabolic 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).
“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. I am confident that this acquisition will deliver value to shareholders in line with the deals we have done in FY23 and prior,” said Amit Bakshi, Chairman & Managing Director of Eris Lifesciences in a press statement.
Leading brands like Psorid, Tbis, Picon and Calpsor will complement the existing Medical Dermatology portfolio of Eris. Brands like Tacrograf and Renodapt in Organ Transplants and emerging brands like Bionesp and Erypro in CKD-induced anaemia provide a strong platform to kick-start the nephrology franchise for Eris.
The acquisition of Biocon’s BFI business units also enables Eris to consolidate its position in Dermatology. Post deal, Eris would become the 2nd largest player in psoriasis with an 11 percent market share. Dermatology is all set to become Eris’ third largest therapy soon, after diabetes and cardiovascular diseases.
“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, CEO & Managing Director, Biocon Biologics Limited in a press statement.
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