Biocon Biologics To Divest Dermatology & Nephrology Units To Eris Lifesciences

Biocon Biologics (BBL), a subsidiary of Biocon has entered into a definitive agreement with Eris Lifesciences (Eris) for the divesture of its Dermatology and Nephrology branded formulations business units in India, the company said in a press statement. The transaction is a ‘Slump Sale’ that will enable a seamless transfer of the product brands and employees associated with this business,  the company said in a press statement.

The statement further stated that the divestment of the non-core branded formulations business units in India is part of BBL's strategic plan to refocus its efforts as a fully integrated biosimilar company, emphasising core therapy areas. The transaction, valued at Rs 3,660 million, inclusive of working capital, signifies a favourable multiple of 4 times on Revenues and 22 times on EBITDA.

Shreehas Tambe, CEO and Managing Director, Biocon Biologics, said, “This divesture of non-core assets allows Biocon Biologics to unlock value within our Branded Formulations portfolio in India and sharpen focus on our core therapy areas like Diabetes, Oncology and Immunology. We believe that Eris Lifesciences is well-positioned to build further on the Dermatology and Nephrology franchise in India. Biocon Biologics remains committed to a successful transition of employees of these business units, our product brands, and customers to ensure continuity for patients.” 

With the deal set to conclude by the end of November 2023, over 120 employees from the two business units will smoothly transition to Eris, ensuring continuity for both employees and patients. This divestiture aligns BBL with its strategic goals,  the statement from the company read.

The acquisition of Biocon’s BFI business units will enable Eris to become the 2nd largest player in Psoriasis with an 11 per cent market share, the company informed.

Amit Bakshi, Chairman & Managing Director of Eris Lifesciences, said, “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."