H.Q. Team
March 16, 2023: India’s Dr. Reddy’s Laboratories has divested “certain” non-core dermatology brands of the company to Eris Lifesciences for INR 2.7 billion.
The company didn’t reveal details of the transaction in the BSE filing. According to IQVIA, a research firm, the divested sales portfolio saw sales of INR 600 million in India last year.
“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,” said M.V. Ramana, CEO – of Branded Markets (India & Emerging Markets).
“This deal is a further step towards consolidating our core and helping us deliver focused play in India,” he said.
Eris is a publicly-listed company, and diabetes care is its flagship therapy contributing to 29% of FY22 branded formulations revenue. The Gujarat-based company extended its presence to the insulin franchise at the start of last year’s calendar year.
Cardiac care contributes 24% of the revenue, and the company has three emerging therapies – dermatology, neuropsychiatry and gynaecology – collectively accounting for 20% of our branded formulations revenue. The top-six therapies account for more than 90% of its revenue.
Eris clocked a consolidated operating revenue of INR 13.5 billion in the fiscal year 2022. The net profits have risen in the last ten years to INR 4.1 billion last fiscal year.
