Eris Lifesciences Acquires Biocon Biologics' Nephro & Dermatology Units for Rs 366 Cr
Written by Arushi Sharma
Eris Lifesciences solidifies its position in the pharmaceutical landscape with the acquisition of nephrology and dermatology units from Biocon Biologics, propelling itself as a major player in psoriasis.
Eris Lifesciences, a prominent formulations company in India, has sealed a deal to acquire the nephrology and dermatology business units from Biocon Biologics for a sum of Rs 366 crore.
This strategic move includes over 20 brands that generated Rs 90 crore in revenue for FY23, with a run rate of approximately Rs 100 crore.
The acquisition not only signifies Eris's entry into the field of nephrology but also positions it as the second-largest player in psoriasis (dermatology) with an 11 percent market share.
The agreement encompasses the transfer of key leadership and the entire field force, comprising more than 120 personnel, from Biocon Biologics to Eris post-deal.
Biocon Biologics, on the other hand, is divesting its non-core assets to concentrate on key therapy areas such as diabetes, oncology, and immunology.
The transaction value of Rs 366 crore is deemed accretive, with multiples of 4x on revenues and 22x on Ebitda, according to Biocon Biologics. Eris Lifesciences, known for successfully entering new therapy segments through strategic acquisitions, sees this move as a valuable addition to its flagship cardio-metabolic business.
Post-deal, Eris aims to provide comprehensive care to patients, ranging from diabetes and hypertension to chronic kidney disease (CKD).
Amit Bakshi, Chairman and Managing Director of Eris Lifesciences, expressed confidence in the acquisition's alignment with strategic goals and the company's capital allocation framework. The addition of expertise in nephrology and dermatology from Biocon is expected to contribute to the creation of a substantial franchise delivering significant value to patients.
Shreehas Tambe, CEO and Managing Director of Biocon Biologics, emphasized that the divestiture of non-core assets allows the company to unlock value within its branded formulations portfolio in India. The focus will now be sharpened on core therapy areas, including diabetes, oncology, and immunology. Biocon Biologics is committed to ensuring a smooth transition for employees, product brands, and customers affected by the divestiture.