Eris Lifesciences acquires nine dermatology brands from Dr Reddy’s for Rs 2,750 mn
Eris entered the dermatology segment through the acquisition of Oaknet Healthcare for Rs 6,500 million in May 2022 and strengthened this franchise with the acquisition of nine dermatology brands from Glenmark in Jan ‘23 for Rs 3,400 million
Eris Lifesciences announced its acquisition of nine dermatology brands from Dr Reddy’s Laboratories for a total consideration of Rs 2,750 million.
The brands are largely in cosmetology segments like anti-acne, moisturisers, cleansers, anti-ageing, hair health, melasma etc. Post this deal, Eris will rank third in its dermatology covered market with a market share of ~ 7 per cent. Eris entered the dermatology segment through the acquisition of Oaknet Healthcare for Rs 6,500 million in May 2022 and strengthened this franchise with the acquisition of nine dermatology brands from Glenmark in Jan ‘23 for Rs 3,400 million.
Inclusive of this deal, Eris has invested Rs 1,2650 million in acquisitions in FY23, primarily in building up its dermatology franchise. Pre-Oaknet, Eris derived 80 per cent of its revenues from the cardiometabolic and VMN segments. The concentration of these therapies is now down to 65 per cent while the contribution from the Emerging Therapies has increased from 12 per cent to 28 per cent with dermatology emerging as Eris’ fourth largest therapy with a 15 per cent share in overall revenue.
Commenting on the acquisition, Amit Bakshi, CMD of Eris Lifesciences said, “Starting with our inception in 2007, it took us 13 years to add the “first 1000 crore” of revenue. However we are adding the “next 1000 crore” of revenue in just four years by deploying our internal cashflows along with external funding to drive a mix of organic and inorganic growth while protecting our margins. We expect this will continue to be a way of life at Eris going forward.”