M&A: Eris Lifesciences acquires Biocon Biologics for Rs. 1,242 Crore

Transaction:

• Biocon Biologics Limited, a fully integrated global biosimilars company and a subsidiary of Biocon Limited, today announced a long term commercial collaboration with Eris Lifesciences to expand patient access to its portfolio of Metabolics, Oncology, and Critical Care products in India.
• Total transaction value is 1,242 Crore, which represents an accretive multiple of 3.4x revenue and 18x EBITDA.
• The transaction includes all trademarks, net working capital and about 430 employees, Eris told the stock exchange. The acquisition also marks Eris’ entry into oncology and critical care.

About Eris Lifesciences Limited:

• Eris Lifesciences Ltd is a publicly listed Indian pharmaceutical company with a pure-play domestic branded formulations business model.
• Eris is also successfully diversifying its business with 3 emerging therapies (Dermatology, Neuropsychiatry and Gynecology) accounting for 26% of its revenue.

About Biocon Biologics Limited:

• Biocon Biologics Limited (BBL), a subsidiary of Biocon Ltd., is a unique, fully integrated, global Biosimilars company committed to transforming healthcare and transforming lives by enabling affordable access to high quality Biosimilars for millions of patients worldwide.
• Biocon Biologics has commercialized eight Biosimilars in key emerging markets and advanced markets like U.S., Europe, Australia, Canada, and Japan.
• The Company has a pipeline of 20 Biosimilars assets across diabetology, oncology, immunology, ophthalmology, and other non-communicable diseases.

Rationale:

• The acquisition will expand the presence of Eris in the India branded sterile injectables market and enable the harnessing of synergies with the recently acquired Swiss Parenterals Ltd.
• Eris expects that Biocon business with revenue base of Rs. 360+ crore is an ideal launch platform to address the India injectables market and can be quickly scaled up with new product launches from Swiss Parenterals’ current basket and pipeline of 230+ molecules.
• The deal should create the 5th largest Diabetes care portfolio in India for Eris with a revenue base approaching Rs. 1000 crore p.a., with significant footprints in Oral anti-diabetes as well as Injectable anti-diabetes.
• Last November, Eris had acquired Biocon Biologic’s Nephrology & Dermatology businesses, as well.
• The two companies also inked a 10-year supply agreement, and it included a tech-transfer component. The Biocon product range will continue to be manufactured and supplied to Eris for commercialization in India.
• Amit Bakshi, Chairman and Managing Director of Eris Lifesciences, said the latest transaction along with the acquisition of Swiss Parenterals (announced last month), would “turbocharge” their entry into the Rs. 30,000-plus Crore India-branded injectables market and pave the way for their next Rs. 1,000-crore vertical in the next four-odd years. “Over the last two years, we have added a number of strategic growth engines to our portfolio and now we have all the building blocks in place to be able to achieve our target of Rs. 5,000-crore revenue over the next three-four years,” he added.
• Biocon Ltd. has been making efforts to reduce debt of over $1 Billion that it took to acquire generic drug portfolio of American Company Viatris in December 2022.