Branded formulations maker Eris Lifesciences said on Thursday it is acquiring nine dermatology brands from pharma major Dr. Reddy’s Laboratories for ₹275 crore.
Dr. Reddy’s, without mentioning the number of brands, said certain non-core brands in the dermatology segments are being divested and the trademarks assigned to Eris. The divested portfolio saw sales of ₹60 crore in India, it said, citing IQVIA MAT December 2022 figures. “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,” CEO – Branded Markets (India and Emerging Markets) M.V. Ramana said.
In a separate announcement, Eris said the brands being acquired are largely in cosmetology segments like anti-acne, moisturisers, cleansers, anti-ageing, hair health and melasma. The company entered the dermatology segment through acquisition of Oaknet Healthcare for ₹650 crore in May 2022 and strengthened the franchise with acquisition of nine dermatology brands from Glenmark in January for ₹340 crore. Post the deal with Dr. Reddy’s, the company will have a market share of about 7% in the dermatology segments it operates.
Eris is deploying internal cash flows along with external funding to drive a mix of organic and inorganic growth while protecting its margins. “We expect this will continue to be a way of life at Eris going forward,” CMD Amit Bakshi said. The transaction with Dr. Reddy’s will be financed through borrowings and achieve financial closure in the next few days, the company said.
