Eris Lifesciences purchases Biocon Biologics’ domestic brand formulations biz

15 Mar 2024 , 11:38 AM

Eris Lifesciences announced on Thursday that it acquired Biocon Biologics’ India branded formulation division for ₹1,242 Crore.

Eris has also negotiated a 10-year supply agreement with Biocon Biologics as part of this transaction.

As part of the agreement, around 430 people from the company are scheduled to migrate to Eris, assuring continuity for both staff and patients.

Biocon Biologics’ India branded formulation business generates ₹360 Crore in sales and is valued at 3.4 times that much.

The two products Basalog and Insugen each contribute ₹100 Crore to the ₹360 Crore total. The oncology and critical care categories each contribute ₹80 Crore. The oncology portfolio comprises nimotuzumab, a new biologic medicine, as well as trastuzumab and bevacizumab biosimilars.

The deal is scheduled to take effect by April 15, 2024, subject to customary closing conditions.

Eris will fund the transaction with debt financing.

This transaction also provides immediate synergies with Eris’ recent acquisition of the Swiss Parenterals company. The Biocon product line may be swiftly expanded by using the Swiss’ product portfolio, which includes over 240 distinct compounds.

The amalgamation of both transactions also opens up opportunities for margin growth by transferring manufacturing processses to Swiss facilities through insourcing and technology exchange.

Amit Bakshi, chairman and managing director of Eris, stated that the recent agreement, along with the acquisition of Swiss Parenterals announced last month, will greatly accelerate their penetration into the Indian branded injectables market valued at ₹30,000 Crore. Furthermore, it will set the stage for the development of their next ₹1,000 Crore vertical within the upcoming 3 to 4 years.

Following the transaction, Eris’ debt on the balance sheet would grow to ₹3,000 Crore.

The sale will help Biocon Biologics reduce its debt further, which it used to fund the acquisition of Viatris’ biosimilar business.

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