Eris Life to acquire nine dermatology brands from DRL for Rs 275 crore

Eris Lifesciences, on March 16 announced the acquisition of nine dermatology brands from Dr Reddy’s Laboratories for a total amount of Rs 275 crores. The acquisition would not be categorized as a ‘related party transaction’ and none of the promoter, promoter group or group companies hold any interest in the acquisition. Only a part of the dermatology portfolio of DRL is being acquired through this transaction.

The acquisition will help Eris Lifesciences augment and expand the cosmetic dermatology business by way of expansion in the product offerings. The transaction is expected to be completed by March 31, 2023.

On January 17, Eris Life’s wholly owned subsidiary, Eris Oaknet Healthcare announced the acquisition of nine brands of Glenmark Pharma’s dermatology portfolio for Rs 340 crores. Following the two acquisitions, the company’s derma contribution will rise to 12.7 percent vs 7.6 percent of total sales. The market share for Eris in the derma market will rise to 4.6 percent vs 2.8 percent earlier.

Eris Life reported a rise of one percent in its Q3 net profit on a year-on-year basis, while its EBITDA margin declined by more than 400 bps compared to the same quarter last year.

The stock is currently trading with cuts of nearly 1.5 percent at Rs 583.95 per share. The stock is down nearly five percent for the week.