Biocon Biologics has entered into a definitive agreement with Eris Lifesciences (Eris) for the divesture of its dermatology and nephrology branded formulations business units in India that mostly comprised of its legacy small molecules’ brands. The transaction is a ‘Slump Sale’ that will enable a seamless transfer of the product brands and employees associated with these businesses.
- Total transaction value of the divestment is Rs 3,660 million, inclusive of working capital conveyed as part of the deal, and represents an accretive multiple of 4x on Revenues and 22x on EBITDA
- Post deal close, over 120 employees of the two business units are expected to transition to Eris, ensuring continuity for both employees and patients
- The divestiture is expected to close by the end of November 2023, subject to customary closing conditions
The company informed that the divestment of the non-core branded formulations business units in India is in line with BBL’s strategy to sharpen focus on core therapy areas as a fully integrated biosimilars company.