NEW DELHI: Biocon Biologics (BBL) is divesting its dermatology and nephrology branded formulations business to Eris Lifesciences for Rs 366 crore. The business, which includes its legacy small molecule brands, will be sold as a slump sale, a company statement said. The deal represents an accretive multiple of 4x on revenues and 22x on EBITDA.
Post-deal close, over 120 employees of the two business units are expected to transition to Eris, ensuring continuity for both employees and patients, it added.
The divestiture is expected to close by the end of November 2023, subject to customary closing conditions. The divestment of the non-core branded formulations business units in India is in line with BBL’s strategy to sharpen focus on core therapy areas as a fully integrated biosimilars company.
Shreehas Tambe, CEO & MD, BBL, said: “This divesture of non-core assets allows Biocon Biologics to unlock value within our branded formulations portfolio in India and sharpen focus on our core therapy areas like diabetes, oncology and immunology. We believe that Eris Lifesciences is well positioned to build further on the Dermatology and Nephrology franchise in India’’.
Commenting on the acquisition, Amit Bakshi, CMD, Eris Lifesciences said: “The acquisition of Biocon Biologics’ Nephrology and Dermatology Branded Formulations businesses in India is in-line with our strategic goals as well as our capital allocation framework. I am confident that this acquisition will deliver value to shareholders in line with the deals we have done in FY23 and prior.”
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