Biocon Biologics has announced a significant long-term commercial collaboration with Eris Lifesciences aimed at expanding patient access to a comprehensive portfolio of Metabolics, Oncology, and Critical Care products across India.
As part of this collaboration, Biocon Biologics has entered into a 10-year supply agreement with Eris, slated to commence on April 1, 2024. The total transaction value amounts to Rs 1,242 crore, reflecting an accretive multiple of 3.4x of revenues and 18x of EBITDA. Additionally, more than 430 employees associated with the business are expected to transition to Eris as part of the deal.
Shreehas Tambe, CEO & Managing Director of Biocon Biologics Limited, emphasized the strategic significance of this collaboration, stating, “This strategic collaboration with Eris Lifesciences for our portfolio of Metabolics, Oncology, and Critical Care products in India aligns with our commercial strategy to maximize patient reach and market potential.” Tambe further added, “It builds on the success of our existing partnership with Eris for our Nephrology and Dermatology products and will allow us to deliver our high quality, lifesaving biosimilars to millions of patients in India.”
The collaboration underscores Biocon Biologics’ commitment to enhancing healthcare accessibility and underscores its dedication to delivering high-quality healthcare solutions to patients across India.
The recent collaboration between Biocon Biologics and Eris Lifesciences is strategically aligned with Biocon Biologics’ overarching goal to unlock value from its legacy business of branded formulations, cultivated over the past two decades. This collaboration further extends the existing partnership between the two entities, which initially commenced with Biocon’s Nephrology and Dermatology business in December 2023, as stated by the company.
As part of this collaboration, Eris Lifesciences will acquire two significant insulin brands – Basalog and Insugen – from Biocon Biologics. These brands hold substantial market shares, each surpassing 10 percent in their respective segments. The acquisition is poised to bolster Eris’s Diabetes care franchise significantly, with anticipated revenues reaching Rs 1,000 crore. Consequently, this acquisition is set to elevate Eris to the rank of the 5th largest diabetes portfolio in India, underscoring the strategic significance of the deal.
Furthermore, the financing of this acquisition will be facilitated through debt financing, underscoring Eris’s commitment to strategic growth and expansion within the healthcare sector. Through this collaboration, both Biocon Biologics and Eris Lifesciences aim to reinforce their positions in the healthcare market and enhance their ability to deliver innovative healthcare solutions to a broader patient base across India.
Sources: moneycontrol.com
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