Eris acquires commercial rights of Biocon Biologics' India branded formulations biz for Rs 1,242 cr

New Delhi: Eris Lifesciences on Thursday said it has acquired commercial rights of Biocon Biologics' India branded formulation business for Rs 1,242 crore.

The acquisition brings two major insulin brands – Basalog and Insugen – into the company's fold, along with metabolic, oncology, and critical care products, the drug firm said in a statement.

With the deal, Eris' diabetes care franchise is expected to touch the Rs 1,000 crore revenue mark, it added.

The drug firm said it has signed a 10-year supply agreement with Biocon Biologics.

As per the agreement, the Biocon product range will continue to be manufactured and supplied to Eris for commercialisation in India, it added.

"This deal, combined with the acquisition of Swiss Parenterals that we announced last month will turbocharge our entry into the Rs 30,000 plus crore India branded injectables market and pave the way for our next Rs 1,000 crore vertical in the next 3-4 years," Eris Lifesciences Chairman & Managing Director Amit Bakshi stated.

Over the last two years, the company has added a number of strategic growth engines to its portfolio and now has all the building blocks in place to be able to achieve a target of Rs 5,000 crore revenue over the next 3-4 years, he added.

Biocon Biologics CEO & Managing Director Shreehas Tambe said the strategic collaboration with Eris for metabolic, oncology, and critical care products in India aligns with its strategy to maximise patient reach and market potential.

"It builds on the success of our existing partnership with Eris for our nephrology and dermatology products and will allow us to deliver our high quality, lifesaving biosimilars to millions of patients in India," he added.

As part of the deal, over 430 employees associated with the business are expected to transition to Eris, ensuring continuity for employees and patients, Biocon Biologics said.

The transaction is expected to come into effect on April 1, 2024, subject to customary closing conditions, it added.

Biocon Biologics is a subsidiary of Biocon Ltd.

Eris Lifesciences shares on Thursday ended 3.32 per cent up at Rs 858 apiece on the BSE. On the other hand, Biocon shares surged 5.47 per cent to close at Rs 266.95 per scrip.