Eris Lifesciences to buy Biocon arm’s derma, nephro units; Eris, Biocon shares in focus

Shares of Biocon and Eris Lifesciences will be in focus on November 9 as the Biocon’s subsidiary Biocon Biologics is set to divest its dermatology and nephrology branded formulations business units in India to Eris.

Biocon Biologics entered into a definitive agreement with Eris Lifesciences to divest these two non-core branded formulations on a slump sale basis.

The share price of Biocon settled 0.58 percent higher on November 8 at Rs 226.65 on the NSE, while Eris Lifesciences shares jumped over 4 percent to close at Rs 905 apiece.

The total consideration for the two businesses is Rs 366 crore. Once the deal has been closed, by the end of November, over 120 employees of the two business units are expected to transition to Eris, ensuring continuity for both employees and patients.

Also Read | Eris acquires nephrology, dermatology brands of Biocon for Rs 366 crore

This divestiture is in-line with Biocon Biologics’s strategy to sharpen focus on core therapy areas as a fully integrated biosimilars company. With this, Biocon Biologics can unlock value in its branded formulations, and focus on core therapy areas like Diabetes, Oncology and Immunology.

In a filing with the exchanges, Biocon Biologics CEO Shreehas Tambe said, “We believe that Eris Lifesciences is well positioned to build further on the Dermatology and Nephrology franchise in India.”

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“We have successfully demonstrated our ability to turn around and create value in acquired businesses. The acquisition of Biocon Biologics’ Nephrology and Dermatology Branded Formulations businesses in India is in-line with our strategic goals as well as our capital allocation framework,” said Amit Bakshi, Chairman & Managing Director, Eris Lifesciences on the acquisition.

Biocon Biologics is a global biosimilars company, which enables affordable access to high quality biosimilars. It attempts to lower costs of biological therapeutics while improving healthcare outcomes. The company has a pipeline of 20 biosimilar assets across diabetology, oncology, immunology, ophthalmology, and other non-communicable diseases.

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