Biocon Biologics sells branded formulations biz to Eris Lifesciences for INR12.42 bn

Includes portfolio of metabolics, oncology, and critical care products in India and a 10-year supply agreement with Eris

Biocon Biologics will sell its Indian branded formulations to Eris Lifesciences in a deal worth INR12.42 billion. This represents an accretive multiple of 3.4x of revenues and 18x of EBITDA.

The transaction is expected to close by April 15, 2024, and will include a 10-year supply agreement with Eris.

This sale includes its portfolio of metabolics, oncology, and critical care products in India. Biocon Biologics had sold its nephrology and dermatology business to Eris last December.

Eris expects its diabetes care franchise to reach INR 1,000 crore in revenue and become the fifth largest diabetes portfolio in India, though no timeline was mentioned in the release. This acquisition also marks Eris’ entry into oncology and critical care. Eris is reportedly targeting Rs. 5,000 crore revenue over the next 3-4 years.

As part of the deal, over 430 employees associated with the business are expected to transition to Eris, ensuring continuity for both employees and patients.

The transaction is expected to come into effect on April 1, 2024, subject to customary closing conditions.