Bangalore, November 19, 2017: Strides Shasun Limited (Strides) and Eris Lifesciences Limited (Eris) today announced entering into definitive agreements for sale of Strides’ India branded generics business to Eris for an aggregate cash consideration of INR 500 Crores. The transaction is subject to customary closing conditions and parties intend to close the transaction by November 30th, 2017.
Strides’ India branded generics business comprise of a portfolio of 130+ brands in the domains of Neurology, Psychiatry, Nutraceuticals, Gastro etc. along with the employees forming part of the business. In terms of the agreement, Eris will acquire the marketing and distribution rights for the said portfolio of products in India while Strides will retain the global rights for these products.
With this acquisition, Eris’s fourth—and the largest–in the last 18 months, the Company will be among the top ten companies in the Central Nervous System (CNS) segment. Eris is already among the top 20 companies in the cardiology segment and ranks among the top ten in the diabetology segment.
Since inception in 2007, Eris has focused on the “chronic segments” of cardiology and diabetology. Eris had forayed into the CNS segment only recently. This acquisition cements Eris’s position in the top three chronic segments.
Post-acquisition Eris will break into the league of top 25 companies having a market share of more than 1% in the Indian Pharmaceutical Market.
The India branded generics business being divested by Strides had sales of INR 181 Crores in FY 2017.
Commenting on the transaction, Shashank Sinha, Managing Director of Strides stated, “This transaction is the outcome of our portfolio reprioritization, to focus more sharply on larger regulated markets. We retain global rights for the divested portfolio, which have significant sales in Africa and will continue to grow our emerging market business. Net proceeds from this transaction will be used to pay down debt to the tune of INR 400 Crores.”
“The transaction is a good strategic fit for Eris and will strengthen our position in the key segments of CNS and Gastro-Intestinal therapies. We expect to realize cost and revenue synergies from this transaction given Eris’ strong presence in the branded business in India” said Amit Bakshi, Managing Director Eris Lifesciences Limited.
For Strides, MAPE Advisory Group and Tatva Legal acted as the transaction advisor and legal advisor respectively.
EY India was the exclusive M&A advisor and Shardul Amarchand Mangaldas & Co was the legal advisor to Eris Lifesciences on this transaction.
Corporate Comm India(CCI Newswire)