The acquisition includes working capital and a team of over 120 professionals from Biocon Biologics' nephro and derma units, who will join Eris following the deal.
Ahmedabad-based Eris Lifesciences has acquired Biocon Biologics' dermatology and nephrology branded formulations business units in India.
The deal, valued at INR 366 Cr, included partial funding through debt financing.
The acquisition includes working capital and a team of over 120 professionals from Biocon Biologics' nephro and derma units, who will join Eris following the deal. The transaction is set to conclude by the end of November 2023.
Commenting on the development, Shreehas Tambe, CEO and MD of Biocon Biologics, said, "This divestiture 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."
This business deal brings over 20 mother brands into Eris's portfolio, with a revenue of INR 90 Cr in FY23 and a current revenue run-rate of INR 100 Cr. Notable legacy brands, such as Tacrograf and Renodapt in organ transplants, and emerging brands, such as Bionesp and Erypro in chronic kidney disease-induced anemia, will now be under Eris's umbrella.
This addition will complement Eris's existing medical dermatology offerings, including Psorid, Tbis, Picon, and Calpsor.
Historically, Eris has used acquisitions to diversify its therapeutic reach. They entered neuropsychiatry in 2017 through the acquisition of Strides Shasun's domestic business, and in 2022, they expanded into dermatology by acquiring Oaknet Healthcare.
This was followed by acquiring brand portfolios from Glenmark and Dr Reddy's in early 2023.
This acquisition marks Eris's entry into Nephrology and solidifies its position as the second-largest player in psoriasis, with an 11% market share. Dermatology is poised to become Eris's third-largest therapy, following diabetes and cardiovascular treatments.
Amit Bakshi, chairman and managing director of Eris, expressed confidence in their ability to create value in acquired businesses. He said, "The acquisition of Biocon Biologics' nephrology and dermatology branded formulations businesses in India aligns with our strategic goals and capital allocation framework."
In other developments, Biocon Generics Inc, a subsidiary of Biocon, acquired Eywa Pharma Inc.'s oral solid dosage manufacturing facility in the United States, reinforcing Biocon's presence in the US pharmaceutical market with a total consideration of $7.7 million.
The acquisition deal also saw the absorption of Eywa Pharma Inc.'s existing workforce by Biocon Generics Inc.
Furthermore, in April 2023, Biocon Biologics' B3 plant in Bengaluru, India, received GMP certification from the Health Products Regulatory Authority in Ireland to manufacture biosimilar Bevacizumab, designed to treat multiple cancers and a specific eye disease.