Eris Lifesciences strikes deal for Dr. Reddy’s cosmetic dermatology brands
Eris Lifesciences has announced the acquisition of nine cosmetic dermatology brands in the Indian market from Dr. Reddy’s Laboratories for INR 275 crores in cash.
According to the Indian pharma company which is based in Ahmedabad, the deal helps supplement and grow its cosmetic dermatology business through the increase of its product offerings.
The brands being acquired are Hydroheal, Revilus, Gris ODT, Avarta, Revibra, Clearz, Salicylix, Aquaderm, and Acrofy. These cover the areas of anti-acne, anti-aging, moisturizers, melasma, hair health, and cleansers.
Eris Lifesciences expects to rank no.3 after the closing of the deal in the Indian dermatology segment with a market share of 7%.
Amit Bakshi — Eris Lifesciences Chairman and Managing Director said: “Starting with our inception in 2007, it took us 13 years to add the ‘First 1000 crore’ of revenue. However, we are adding the ‘Next 1000 crore’ of revenue in just four years by deploying our internal cashflows along with external funding to drive a mix of organic and inorganic growth while protecting our margins.”
The cosmetic dermatology brands to be acquired by the company had a turnover of INR 61.6 crores in FY21-22 and INR 52.8 crores in FY20-21.
Dr. Reddy’s Laboratories said that the nine brands are non-core to the company. Therefore, the deal enables it to concentrate on strengthening its core business.
MV Ramana — Dr. Reddy’s Laboratories CEO of Branded Markets (India & Emerging Markets) said: “India is a focus market for us. We aspire to break into the top 5 in India. Today’s announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions that are a strategic fit and divestment of non-core brands.
“This deal is a further step towards consolidating our core and helping us deliver focused play in India in keeping with our purpose of ‘Good Health Can’t Wait’.”
Earlier this year, Eris Lifesciences via its fully-owned subsidiary Eris Oaknet Healthcare struck a deal with Glenmark Pharmaceuticals to acquire certain dermatology brands in the Indian and Nepalese market for INR 340.5 crores.