Dr. Reddy's Laboratories (DRL) announced that along with its subsidiaries it has signed a deal to divest certain non-core brands of the company in the dermatology segments to Eris Lifesciences for Rs 275 crore.
Under the agreement, Eris Lifesciences will be assigned the trademark of these brands by Dr. Reddy's for a consideration of Rs 275 crore.As per IQVIA MAT December 2022, the divested portfolio had sales of Rs 60 crore in India.
M.V. Ramana, CEO - branded markets (India & emerging markets) said, India is a focus market for us. We aspire to break into the top 5 in India. 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.
Meanwhile, Eris Lifesciences announced that it will acquire part of the dermatology portfolio of Dr.Reddy's Laboratories by way of acquisition of nine trademarks along with their applicable line extensions for Rs 275 crore.
Eris Lifesciences is engaged in manufacturing, marketing and selling of generics within the chronic and acute categories of the Indian pharmaceutical market. Shares of Eris Lifesciences declined 1.80% to Rs 573.30 on the BSE.
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Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.
The drug major's consolidated net profit jumped 76.52% to Rs 1,247.1 crore on 27.26% rise in revenues to Rs 6,770 crore in Q3 FY23 over Q3 FY22.
Shares of Dr Reddy's Laboratories rose 0.79% to Rs 4,417.80 on the BSE.
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