Eris Lifesciences Expands to Injectables by Acquisition of Biocon Biologics

Eris Lifesciences Expands to Injectables by Acquisition of Biocon Biologics

By, Admin 15 March 2024

Eris Lifesciences expands into injectables market with acquisition of Biocon Biologics’ India branded formulations business

Eris Lifesciences Ltd., a leading branded formulations company, has announced the acquisition of Biocon Biologics’ India branded formulation business for a consideration of Rs. 1,242 crore thereby jumpstarting its entry into the Rs, 30,000+ crore injectables market in India and becoming a leading player in the insulins segment.

Combing Two Insulin Brands

  • The acquisition brings two major insulin brands – Basalog and Insugen – into the Eris fold. 
  • These are the largest Indian brands in their respective segments with market shares of over 10%. 
  • With this acquisition, Eris’s diabetes care franchise will soon reach Rs. 1,000 crore in revenue and become the 5th largest diabetes portfolio in India.
  • This acquisition will also mark Eris’ entry into oncology and critical care. Eris has signed a 10-year supply agreement with Biocon Biologics Ltd. as part of this deal. Under this agreement, the Biocon product range will continue to be manufactured and supplied to Eris for commercialization in India.

This acquisition also provides immediate synergies with the recently acquired Swiss Parenterals business. The Biocon product range can be quickly scaled up by leveraging the product portfolio of Swiss, which consists of 240+ unique molecules. The combination of the two deals also provides margin expansion opportunities through insourcing/technology transfer of manufacturing to Swiss’ facilities.

Statement from Eris Lifesciences

Commenting on the acquisition, Amit Bakshi, chairman & managing director of Eris Lifesciences Ltd., said, “We consider it an honour and privilege to enter into this long-term collaboration with Biocon which is an organisation known for its remarkable pedigree and its pioneering efforts in the Biosimilars space in terms of innovation, product quality and interchangeability. We believe that we will be able to build on their success and take this franchise to new heights. This deal, combined with the acquisition of Swiss Parenterals that we announced last month will turbocharge our entry into the Rs. 30,000+ crore India Branded Injectables market and pave the way for our next Rs. 1,000 crore vertical in the next 3 to 4 years. Over the last 2 years, we have added a number of strategic growth engines to our portfolio and now we have all the building blocks in place to be able to achieve our target of Rs. 5,000 crore revenue over the next 3 to 4 years.”

Signed Agreement

Eris has signed a definitive agreement to acquire Biocon Biologics’ branded formulations India business for a consideration of Rs. 1,242 crore. It has also signed a 10-year supply agreement with Biocon Biologics Ltd. as part of this deal.

Scope of the Acquisition

The scope of the acquisition includes Biocon’s insulin, critical care and oncology portfolios. Over 435 employees (including 325+ MRs) are expected to transition from Biocon to Eris pursuant to the deal. The deal will be funded through debt financing. The transaction is expected to achieve financial closure before April 15, 2024 

Eris Lifesciences

  • Eris Lifesciences Ltd. is a publicly listed Indian pharma company and is a leading player in the domestic branded formulations market. 
  • Established in 2007, Eris ranks 21st in the Indian Pharmaceutical Market (IPM) and is by far the youngest company in the IPM Top-25. 
  • Since inception, it has focused on chronic and sub chronic lifestyle related therapies and on high-end super-specialist doctors and consulting physicians.
  • Revenue- Eris Lifesciences is a fully integrated business with WHO GMP manufacturing facilities in Guwahati and Gujarat that cater to ˜70% of our revenue and a pan-India distribution network of over 2,000 stockists 5,00,000+ chemists. 
  • Over 5,000 employees work out of our corporate offices in Ahmedabad and Mumbai, the field and manufacturing facilities.
  • Its revenues have grown 4x in the last 10 years (since FY13) and net profits have grown ~ 6x in the last 10 years. 
  • The company has maintained an ROIC in excess of ~ 30% for 13 consecutive years till FY22. Seventeen years into the business, the company retains its fundamental strengths in terms of a chronic and sub-chronic focused brand portfolio (87% of sales) with low (7%) NLEM exposure, high mind-share and prescription ranks with super-specialists (#5 among diabetologists and cardiologists) and strong cash.

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