Eris Lifesciences has stepped into the dermatology therapy business through its acquisition of a 100% stake in Mumbai-based dermatology-focused domestic formulations company Oaknet Healthcare. The transaction values to ₹650 crore.
For the acquisition, Eris will finance ₹300 crore through internal accruals and ₹350 crore through borrowings.
The acquisition will be carried through a share purchase agreement. Post the completion, Oaknet will become a wholly-owned subsidiary of Eris.
Amit Bakshi, Chairman & Managing Director of Eris Lifesciences Ltd., said, “As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of Dermatology and Cosmetology. In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders.”
Krishnakumar V, Executive Director & Chief Operating Officer of Eris Lifesciences Ltd., added, “The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio. We expect to bring to bear multiple value creation levers including in-house manufacturing, new product launches, expansion of field force productivity, and enhancement of operational efficiency.”
Oaknet has a revenue base of ₹195 crore by FY22. The company has nearly 100% coverage of approximately 11,000 Dermatologists across India with a 60% penetration and has a pan India sales and distribution presence.
“Oaknet brings a well-established portfolio of leading brands in Dermatology and Women’s Health to the Eris stable,” the company said in a statement.
In a statement, Eris stated that its Specialty Franchise will get a significant impetus with this acquisition with Eris now present in 87% of the ₹55,000 crore Chronic Market, with a leading presence in the major Chronic Therapies in the IPM – Cardiology, Oral diabetes care, Insulin, Neuro/CNS and Dermatology.
On Wednesday, Eris was trading at ₹666 apiece down by ₹1.14% on BSE. The shares have touched an intraday high and low of ₹698.90 apiece and ₹660.65 apiece respectively.