Eris will purchase Biocon Biologics' renal and dermal units

 Eris will purchase Biocon Biologics' renal and dermal units

Mumbai: Eris Lifesciences Ltd. said that it has finalized a deal to pay ₹366 crore to acquire the branded formulations business in India's nephrology and dermatological sectors from Biocon Biologics Ltd. 

In fiscal year 2023, the acquired units—which include over 20 prominent brands—reported a turnover of ₹90 crore, with a current revenue run-rate of ₹100 crore.

Around 120 employees, including field workers and senior executives, will join Eris Lifesciences as a result of the agreement, which also involves the transfer of working capital. By the end of 2023, the deal is probably going to reach financial conclusion.

"We have effectively shown our capacity to turn around and add value to firms that we have bought. Amit Bakshi, chairman and managing director of Eris Lifesciences, said that the purchase of Biocon Biologics' branded formulations operations in India for nephrology and dermatology is consistent with the company's capital allocation methodology and strategic objectives.

According to the company, this will be a non-core divestment for Biocon Biologics. 

The CEO and managing director of Biocon Biologics, Shreehas Tambe, said, "By divesting non-core assets, we are able to unlock value within our branded ingredients portfolio in India and sharpen our attention on our core therapy areas like diabetes until later, oncology, and immunology."

Eris will join the nephrology market by acquiring two of Biocon's BFI business units in India. The firm said that this purchase expands Eris' core cardiometabolic business and that after the transaction, Eris would provide patients with comprehensive treatment for conditions ranging from diabetes and hypertension to chronic kidney disease (CKD). 

Eris's nephrology franchise will include new products like Bionesp and Erypro in CKD-induced anemia and well-known brands like Renodapt and Tacrograf in organ transplants.

According to the firm, the agreement would also assist Eris in strengthening its position in dermatology. After the transaction, Eris's market share in the psoriasis treatment sector will be 11%.

According to Eris, dermatology will soon overtake cardiovascular and diabetes as its third-most popular therapeutic. Brands including Psorid, Tbis, Picon, and Calpsor will be added to Eris's medical dermatological portfolio.

Eris has previously acquired its way into new therapeutic areas. It began operating in neuropsychiatry in 2017 after acquiring the domestic division of Strides Shasun. It then moved into dermatology in 2022 after acquiring Oaknet Healthcare, and in early 2023 it acquired brand portfolios from Glenmark and Dr. Reddy's.

"I have no doubt that this acquisition will provide shareholders with value comparable to the transactions we have completed in FY23 and earlier," states Bakshi.