Share price of this small-cap stock moved up by nearly 0.6 percent on BSE to Rs. 868.75 in the morning trading session of Friday, compared to the previous closing price of Rs. 863.5, after acquiring the commercial rights to Biocon Biologics.
With a market capitalisation of Rs. 11,489.6 crores, in the last one year, Eris Lifesciences Limited has delivered positive returns of about 43.4 percent and around 3.34 percent of returns in the last six months. However, so far in 2024, it has given negative returns of around 6.1 percent.
According to recent regulatory filings with the stock exchanges, Eris Lifesciences Limited has signed a definitive agreement to acquire Biocon Biologics’ India Branded Formulation business for a consideration of Rs. 1,242 crore thereby entering into India’s Rs. 30,000+ crore injectables market and becoming a leading player in the Insulins segment.
Eris has signed a 10-year supply agreement with Biocon Biologics Ltd. as part of this deal, and the acquisition brings two major insulin brands – Basalog and Insugen – into the Eris fold, which are the largest Indian brands in their respective segments, with market shares of over 10%.
With this acquisition, Eris’s Diabetes Care franchise will shortly reach Rs. 1,000 crore in revenue, making it India’s 5th largest diabetes portfolio. It will also mark Eris’ entry into Oncology and Critical Care.
Under this agreement, Biocon’s product range will continue to be manufactured and supplied to Eris for commercialization in India.
The Board of the company also approved the agreement to acquire a 19% equity stake in Swiss Parenterals Limited from the company’s Promoters.
The Biocon product range can be quickly scaled up by using Swiss’ product portfolio, which includes over 240 unique molecules.
The combination of the two deals also offers margin growth opportunities through insourcing/ technology transfer of manufacturing to Swiss facilities.
In terms of financials, the company’s revenue from operations fell by 3.76 percent QoQ from Rs. 505 crore in Q2 FY22-23 to Rs. 486 crore in Q2 FY23-24.
The net profit of the company also decreased by around 17.2 percent QoQ, from Rs. 122 crore in Q2 FY23-24 to Rs. 101 crore in Q3 FY23-24. Established in 2007, Eris Lifesciences Ltd. is a publicly listed Indian pharma company and is a leading player in the domestic branded formulations market.
The company focuses on chronic and sub-chronic lifestyle-related therapies, as well as high-end super-specialist doctors and consulting physicians.
Written by Shivani Singh
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