Indian drugmaker Eris Lifesciences will acquire part of Dr. Reddy's Laboratories' dermatology portfolio by buying nine trademarks and their applicable line extensions for 2.75 billion rupees ($33.2 million).
WHO: Dr. Reddy’s Laboratories Ltd. is a global pharmaceutical company headquartered in Hyderabad, India, established in 1984 by Kallam Anji Reddy. Driven by the purpose of "Good Health Can’t Wait," the company offers a portfolio of products and services including APIs, generics, branded generics, biosimilars, and OTC.
Established in 2007, Eris Lifesciences Ltd is the only publicly listed Indian pharmaceutical company with a pure-play domestic branded formulation business model. The business is based on two pillars—harnessing the power of cutting-edge science to bring evidence-based therapies to the market, and enabling patients to take charge of their diagnoses and lives through their patient care initiatives.
WHY: The acquisition will help the expansion plans for its portfolio in cosmetic dermatology. Post-deal, Eris will rank third in the Indian dermatology market with a 7% market share.
IN THEIR OWN WORDS: "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," Eris Lifesciences Chairman and Managing Director Amit Bakshi said.
M.V. Ramana, CEO, Branded Markets (India & Emerging Markets) for Dr. Reddy, said, “India is a focus market for us. We aspire to break into the top 5 in India. Today’s announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions that are a strategic fit and divestment of non-core brands. This deal is a further step towards consolidating our core and helping us deliver focused play in India in keeping with our purpose of ‘Good Health Can’t Wait.’”
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