Acquisition to expand diabetes offerings, add oncology products

Company
15 Mar 2024
5 Min read 
  • Eris Lifesciences has agreed to acquire the India branded formulation business of Biocon Biologics for INR12.4b.
  •  The acquisition will expand Eris Lifesciences' presence in the domestic injectable market in diabetes and oncology areas.
  •  The deal is valued at 12x 1-year forward EV/EBITDA, implying 25% YoY growth in EBITDA after the acquisition.
  •  Eris Lifesciences has also proposed to buy a 19% stake in Swiss Parenterals from Eris promoters for INR2.4b.
  •  The acquisitions would increase Eris Lifesciences' net debt to INR24b in FY24 from INR8.9b as of 3QFY24.
  •  Execution remains key over the next 15-18 months for Eris Lifesciences to scale up the acquired business and improve profitability.
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