Biopharmaceutical company Biocon's unit Biocon Biologics will sell its Indian branded formulations businesses to Eris Lifesciences in a deal worth 12.42 billion rupees ($150 million), reported Reuters.
The deal, which is expected to close by April 15, 2024, includes the acquisition of 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 percent. Biocon Biologics has signed a 10-year agreement to supply its portfolio of Metabolics, Oncology, and Critical Care products, the company said in a statement.
✔️ Biocon Biologics is a global biopharmaceutical company with a rich portfolio of insulins and monoclonal antibodies. The Company offers prevention, alleviation, and treatment for chronic diseases such as diabetes, oncology, cancer, and autoimmune diseases.
✔️ Eris Lifesciences, a pharmaceutical company headquartered in Mumbai, has an extensive distribution network in India with over 2,000 vendors. In total, the company employs more than 5,000 people
The total transaction value of 12.42 billion rupees ($150 million) which represents an accretive multiple of 3.4x of revenues and 18x of EBITDA. As part of the deal over 430 employees associated with the business are expected to transition to Eris.
The revenue in fiscal 2023 from the business that Biocon is selling accounted for 3.7% of the Bengaluru-based company's consolidated revenue, it said.
Biocon had earlier sold its dermatology and nephrology branded formulation businesses to Eris for 3.5 billion rupees in November last year.
Source: Reuters
