Pharma company Eris LifeSciences said it has completed its purchase of the India branded generics of Strides Shasun for Rs 500 cr in cash.
“We now wish to confirm that the transaction ahs achieved closure,” said Eris Lifesciences.
Last month, Strides Shasun said it was selling the India branded business as part of its portfolio reprioritization efforts to focus more on larger markets.
Most Indian pharma companies get most of their revenue from markets such as the US and EU.
The India branded generics business had sales of Rs 181 Crores in FY 2017.
Strides will use the proceeds to pay down debt to the tune of INR 400 Crores.
Strides will also retain global rights for the products, which have significant sales in Africa.
Strides India branded generics business comprise of a portfolio of 130+ brands in the domains of Neurology, Psychiatry, Nutraceuticals, Gastro etc., along with the employees forming part of the business.
With this acquisition, Eris’s fourth-and the largest-in the last 18 months, the Company will be among the top ten companies in the Central Nervous System (CNS) segment.
Eris is already among the top 20 companies in the cardiology segment and ranks among the top ten in the diabetology segment.
“Since inception in 2007, Eris has focused on the chronic segments of cardiology and diabetology. Eris had forayed into the CNS segment only recently. This acquisition cements Eris’s position in the top three chronic segments,” the companies said.
“Post-acquisition Eris will break into the league of top 25 companies having a market share of more than 1% in the Indian Pharmaceutical Market.”
The transaction is a good strategic fit for Eris and will strengthen our position in the key Segments of CNS and Gastro-Intestinal therapies.
“We expect to realize cost and revenue Synergies from this transaction given Eris strong presence in the branded business in India,” said Amit Bakshi, Managing Director Eris Pharmaceuticals Limited.
Read more at https://ultra.news/t-t/34886/strides-shasun-says-eris-deal-help-reprioritize-business-lower-debt/#ETVpxkeyedXfYKsU.99