Eris Lifesciences acquires Biocon Biologics’ branded formulation business for Rs 1,242cr

In a strategic move that reshapes the landscape of India’s injectables market, Eris Lifesciences Ltd., a leading player in the branded formulations sector, has announced the acquisition of Biocon Biologics’ India branded formulation business for a hefty sum of INR 1,242 crore. This acquisition not only signifies Eris Lifesciences’ aggressive entry into the burgeoning INR 30,000+ crore injectables market but also positions it as a frontrunner in the Insulins segment in India.

At the heart of this acquisition are two flagship insulin brands, Basalog and Insugen, which command a substantial market share of over 10% in their respective segments. This move is set to bolster Eris Lifesciences’ Diabetes care franchise, propelling its revenue towards the INR 1,000 crore mark and making it the 5th largest diabetes portfolio in the country. Moreover, the acquisition marks Eris’s foray into new therapeutic areas such as Oncology and Critical Care.

A significant aspect of this deal is the 10-year supply agreement signed between Eris Lifesciences and Biocon Biologics Ltd., ensuring the continued manufacture and supply of Biocon’s product range for commercialization in India. This strategic partnership is anticipated to generate immediate synergies with Eris’s recently acquired Swiss Parenterals business, enhancing the potential for scaling up Biocon’s product range by leveraging Swiss’s extensive portfolio of over 240 unique molecules.

The acquisition is financed through debt and is expected to achieve financial closure before April 15, 2024. It includes the transition of over 435 employees, including more than 325 medical representatives (MRs), from Biocon to Eris, indicating a significant transfer of talent and expertise.

Amit Bakshi, Chairman & Managing Director of Eris Lifesciences Ltd., expressed his enthusiasm about the deal, stating, “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.”

This acquisition is a testament to Eris Lifesciences’ strategic vision and its commitment to expanding its footprint in the high-growth injectables market. By integrating Biocon Biologics’ strong insulin and oncology portfolios with its own, Eris not only diversifies its therapeutic offerings but also enhances its competitive positioning in the market.

The acquisition of Biocon Biologics’ branded formulation business by Eris Lifesciences Ltd. for INR 1,242 crore is a landmark deal in the Indian pharmaceutical industry. It underscores Eris’s ambition to dominate the injectables market and expand its diabetes care franchise, while also making significant inroads into Oncology and Critical Care. With this strategic move, Eris Lifesciences is poised for substantial growth, leveraging synergies across its expanded portfolio to achieve its revenue targets in the coming years.