 "biocon")
Shares of Biocon slipped 5 per cent to Rs 254.15 on the BSE in Friday’s intra-day trade as the company’s unit Biocon Biologics will sell its Indian branded formulations businesses to Eris Lifesciences in a deal worth Rs 1,242 crore ($150 million). Both organisations have entered into a long- term collaboration to expand patient access in India.
With today’s decline, the stock price of Biocon corrected 17 per cent from its 52-week high of Rs 307 on February 6.
As a part of this collaboration, Biocon Biologics, a subsidiary of Biocon, will continue to leverage Eris’ strong commercial footprint to significantly expand patient access to its biosimilars in India.
Biocon Biologics has signed a 10-year supply agreement with Eris, as a part of this deal. The transaction is expected to come into effect before April 15, 2024, subject to customary closing conditions, the company said.
The company remains focused on leveraging its ‘lab to market’ capabilities to make a meaningful difference to healthcare and patients worldwide by enabling affordable access to lifesaving biosimilars, it added.
Meanwhile, shares of Eris, a leading branded formulations company, are down 2 per cent to Rs 843.05. The stock of pharmaceutical company has declined 11 per cent in the past five weeks.
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Eris said the acquisition brings two major insulin brands – Basalog and Insugen – into its fold. These are the largest Indian brands in their respective segments with market shares of over 10 per cent. With this acquisition, Eris’s Diabetes care franchise will soon reach Rs 1,000 crore in revenue and become the 5th largest diabetes portfolio in India. This acquisition will also mark Eris’ entry into oncology and critical care.
Under this agreement, the Biocon product range will continue to be manufactured and supplied to Eris for commercialisation in India. This acquisition also provides immediate synergies with the recently acquired Swiss Parenterals business. The combination of the two deals also gives margin expansion opportunities through insourcing/ technology transfer of manufacturing to Swiss’ facilities, Eris said.
Over the last 2 years Eris has added a number of strategic growth engines to its portfolio and now the company has all the building blocks in place to be able to achieve its target of Rs 5,000 crore revenues over the next 3-4 year, the management said.
