Biocon Biologics Ltd (BBL), a subsidiary of Biocon, has inked a definitive agreement with Eris Lifesciences for the divestment of its dermatology and nephrology branded formulations business units in India for ₹366 crore. The total transaction value includes working capital and signifies an accretive multiple of 4x on revenues and 22x on EBITDA. This ‘slump sale’ ensures a seamless transition of product brands and employees to Eris.
Shreehas Tambe, CEO and Managing Director of Biocon Biologics, emphasized that divesting these non-core assets allows them to unlock value within their branded formulations portfolio in India. This move enables Biocon Biologics to sharpen its focus on core therapy areas, including diabetes, oncology, and immunology.
Upon the deal’s closure, more than 120 employees from the two business units will transition to Eris, ensuring continuity for both employees and patients. The divestiture is set to conclude by the end of November, subject to customary closing conditions, aligning with BBL’s strategy to concentrate on core therapy areas as a fully integrated biosimilars company.
Amit Bakshi, Chairman and Managing Director of Eris Lifesciences Ltd, expressed confidence in the acquisition, stating that it aligns with their strategic goals and capital allocation framework.
The shares were trading 0.37 percent higher at 10:21 am on NSE, indicating a positive market response to the strategic business move.