Shares of Biocon dropped almost 5% on March 15 after the company said that the India-based version of Biocon Biologics sold the business to Eris Lifesciences for ₹1,242 crore.
The value of the transaction represents “a clear impressive multiple of 3.4 x Revenue and 18 x EBITDA”, according to the company statement.
More than 430 employees who are linked with the business will be acquiring through Eris, “affected employees” claimed Biocon Biologics. The business “through acquired” portfolios cover insulin, oncology, and critical care, among other things.
“Biocon Biologics has also signed a 10-year supply agreement with Eris as part of this deal. The deal is expected to close on April 1, 2024, subject to the fulfilment of normal propositions,” the company states.
At 11:51 am, Biocon was trading 4.69% down at ₹254.85 on NSE.
Biocon Biologics added that the collaboration is in line with its approach to “unlock the value of their 2-decade-old branded formulations legacy company, greatly enhancing even greater access to their top-brand biosimilars,” according to a press release.
The acquisition of Basalog and Insugen, the leading Indian insulin brands from Biocon Biologics, marks a significant stride for Eris Lifesciences. These two powerhouse brands command an impressive market share exceeding 10% in their respective segments, solidifying their dominance. This strategic move propels Eris into the colossal Rs 30,000-crore injectable market, establishing them as a formidable force in the insulin arena. With the acquisition of these flagship brands, Eris is poised to cement its position as a major player in the insulin segment, expanding its reach and influence within the pharmaceutical landscape.
