On November 9, the attention of investors will be on the shares of Biocon and Eris Lifesciences as Biocon’s subsidiary, Biocon Biologics, prepares to divest its dermatology and nephrology branded formulations business units in India to Eris.
Biocon Biologics has formally entered into an agreement with Eris Lifesciences to divest these two non-core branded formulations through a slump sale.
Biocon’s share price concluded 0.58 percent higher on November 8 at Rs 226.65 on the NSE, while Eris Lifesciences’ shares surged over 4 percent, closing at Rs 905 each.
The total consideration for these two businesses amounts to Rs 366 crore. Upon the completion of the deal, expected by the end of November, more than 120 employees from the two business units are set to transition to Eris, ensuring a seamless transition for both employees and patients.
This divestiture aligns with Biocon Biologics’ strategy to sharpen its focus on core therapy areas as a fully integrated biosimilars company. With this move, Biocon Biologics can unlock value in its branded formulations and concentrate on core therapy areas such as Diabetes, Oncology, and Immunology.
In an official statement filed with the exchanges, Biocon Biologics CEO Shreehas Tambe stated, “We believe that Eris Lifesciences is well positioned to further develop the Dermatology and Nephrology franchise in India.”
Amit Bakshi, Chairman & Managing Director of Eris Lifesciences, commented, “We have successfully demonstrated our ability to turn around and create value in acquired businesses. 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.”
Biocon Biologics is a global biosimilars company dedicated to providing affordable access to high-quality biosimilars. The company endeavors to reduce the cost of biological therapeutics while enhancing healthcare outcomes. Biocon Biologics boasts a robust pipeline of 20 biosimilar assets across various therapeutic areas, including diabetology, oncology, immunology, ophthalmology, and other non-communicable diseases.
