Biocon Biologics Enters Deal to Sell Dermatology and Nephrology Units

Biocon Biologics, a subsidiary of Biocon, has entered into a definitive agreement with Eris Lifesciences (Eris) for the sale of its Dermatology and Nephrology branded product business units in India, consisting primarily of traditional small molecule brands. The transaction is a short sale that allows for a seamless transfer of the brands and employees associated with these companies.The total value of the sale is Rs. 366 billion, including working capital transferred as part of the deal, which is 4x revenue and 22x EBITDA. After the transaction closes, more than 120 employees from two business units will transfer to Eris, ensuring continuity for both employees and patients. The sale is expected to be completed by the end of November 2023, subject to customary sale conditions. According to the company, the sale of non-core branded products in India is in line with Biocon Biologics' strategy to focus on core therapeutic areas as a fully integrated biosimilar company.Shree has Tambe, President and CEO of Biocon Biologics, said, "This sale of non-core assets will enable Biocon Biologics to unlock value from our brand portfolio in India and focus on our core therapeutic areas such as diabetes, oncology and immunology . I believe. Eris Lifesciences is well positioned to develop dermatology and nephrology franchise operations in India." Biocon Biologics remains committed to the successful transition of employees, brands and customers across these business units to ensure patient continuity.Amit Bakshi, President and CEO of Eris Lifesciences, commented on the acquisition: "We have successfully demonstrated our ability to turn around and create value in the businesses we acquire. The acquisition of Biocon Biologics' nephrology and dermatology brand business in India is in line with our strategic goals and capital allocation framework. We welcome Biocon's nephrology and dermatology experts and we look forward to working together to create a great franchise that offers tremendous added value to patients. This acquisition will deliver shareholder value consistent with 23 fiscal years and prior agreements.