Dr Reddy’s divests 9 dermatology brands in India to Eris Lifesciences for Rs 275 crore

HYDERABAD: Dr Reddy's Laboratories Ltd has inked a deal with Eris Lifesciences Ltd to divest nine of its brands in the dermatology segment in India for a cash consideration of Rs 275 crore.

The brands being divested by Dr Reddy’s are Hydroheal, Gris ODT, Revilus, Revibra, Avarta, Salicylix, Clearz, Acrofy and Aquaderm.

Under the agreement, Dr Reddy’s will assign to Eris Lifesciences the trademark of these non-core brands, which saw sales of Rs 60 crore in India as per IQVIA MAT December 2022, Dr Reddy’s said on Thursday.

Pointing out that India is a focus market for the Hyderabad-based company, MV Ramana, CEO-Branded Markets (India & Emerging Markets), Dr Reddy’s said: “We aspire to break into the top five in India. Today’s announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions that are a strategic fit and divestment of non-core brands.

"This deal is a further step towards consolidating our core and helping us deliver focused play in India in keeping with our purpose of ‘Good Health Can’t Wait’,” he added.

Eris Lifesciences informed the bourses that the acquisition of these nine brands would help it augment and expand its cosmetic dermatology business and that the transaction was expected to be completed on or before March 31, 2023.