Tag: Eris Lifesciences

Biocon Biologics CEO terms Eris Lifesciences deal as enabling, not restricting

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Biocon Biologics’ collaboration with Eris Lifesciences is not a restrictive arrangement but an enabling one, said Shreehas Tambe, MD and CEO of Biocon Biologics in an interview with CNBC-TV18.

“It does not prevent us from working with others but certainly these particular brands – Basalog and Insugen – that we have commercialised, would be exclusive to Eris Lifesciences,” he said.

Basalog and Insugen are insulin products used in the treatment of diabetes.

Biocon Biologics, the biosimilars company and a subsidiary of Biocon., sold its Indian formulation business to Eris Lifesciences for ₹1,242 crore.

Biocon Biologics also entered into a long-term commercial collaboration with Eris Lifesciences to expand patient access to its portfolio of metabolics, oncology and critical care products in India.

Tambe sees this as a complementary collaboration between two existing partners building on a relationship that allows to deliver on that ambition of reaching one in five insulin-dependent diabetics in the country.

Biocon Biologics will continue to manufacture and supply its high-quality biologics to patients in India. “We are not looking to exit anything, we are very committed to India and patients here and we will be looking to strengthen our presence along with Eris Lifesciences – a chronic therapy-focused drug firm – who will represent far stronger commercial reach than we had,” he mentioned.

The transaction value of ₹1,242 crore translates to an accretive multiple of 3.4 times of revenue and 18 times of earnings before interest, taxes, depreciation, and amortisation (EBITDA).

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The US Food and Drug Administration (USFDA) has classified Biocon Biologics’ Malaysian plant as Official Action Indicated (OAI).

Tambe said the company is working with the USFDA to see how it can resolve it.

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Biocon Biologics signs 10-year supply pact with Eris Life for ₹1,242 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Biocon Biologics, the biosimilars company and a subsidiary of Biocon Ltd., announced a long-term commercial collaboration with Eris Lifesciences to expand patient access to its portfolio of metabolics, oncology and critical care products in India.

The total transaction value is ₹1,242 crore, which represents an accretive multiple of 3.4 times of revenue and 18 times of EBITDA, the company said in an exchange filing.

The collaboration is in-line with Biocon Biologics’ strategy to unlock value from its legacy business of branded formulations and extend its existing partnership with Eris for Biocon’s Nephrology and Dermatology business announced in December 2023.

As part of the deal 430 employees associated with the business are expected to transition to Eris, the company said.

The transaction is likely to come into effect before April 15, 2024, subject to customary closing conditions.

In November last year, Biocon Biologics had signed definitive agreements with Eris Life for divesting its dermatology and nephrology branded formulations business units in India.

The total transaction value of the divestment was ₹366 crore.

“This strategic collaboration with Eris Lifesciences for our portfolio of Metabolics, Oncology, and Critical Care products in India aligns with our commercial strategy to maximize patient reach and market potential,” Shreehas Tambe, CEO & MD of Biocon Biologics was quoted as saying.

Shares of Biocon ended 4.3% higher at ₹263.75.

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Eris Lifesciences secures Rs 212 crore term loan facility from HDFC Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharmaceutical firm Eris Lifesciences Ltd (ELL) on Friday (September 29) said it has entered into a term loan agreement with HDFC Bank to access a rupee term loan facility amounting to Rs 212 crore.

This financial arrangement is tied to the dermatology brand acquisition from Glenmark by Eris Oaknet Healthcare Private Ltd, a wholly-owned subsidiary of Eris Lifesciences, which was assigned to the holding company on July 3, 2023, at their book value.

The primary purpose of this agreement is to enable Eris Lifesciences to fulfill its financial obligation to Eris Oaknet Healthcare Private Ltd (EOHPL) for the assignment of these brands.

Consequently, the funds received from HDFC Bank through this loan will be utilised by ELL to make payments to EOHPL for the assignment of the dermatology brands.

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It’s noteworthy that EOHPL, in turn, will utilise the consideration received from ELL to fully repay the loans it had previously availed from HDFC Bank for the acquisition of these brands.

The size of this agreement stands at Rs 212 crore, and it involves a pari-passu charge alongside Citi Bank N.A. on the trademarks acquired from Eris Oaknet Healthcare Private Ltd.

Shares of Eris Lifesciences Ltd ended at Rs 877.05, up by Rs 27.05, or 3.18 percent on the BSE.

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

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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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.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Glenmark Pharma divests second non-core asset in a month – here are the details

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Eris Lifesciences will acquire a part of Glenmark’s dermatology portfolio for Rs 340 crore in the Indian market. The company will acquire nine trademarks of Glenmark’s dermatoloty portfolio along with line extensions. This is Glenmark’s second sale of its non-core assets in a month after divesting cardiac brand Razel to JB Chemicals and Pharmaceuticals for Rs 313.7 crore.

The deal is valued at 3.9 times trailing sales for the previous financial year, which is largely in-line with the 3.5x-5x valuation of previous deals that took place.

The brands – Onabet, Halovate, Sorvate, Luligee, Demelan, Aceret, Dosetil, Revize, Powercort, and sub-brands (topical dermatology, corticosteroids, psoriasis, demelanising) – made a revenue of Rs 87.3 crore in FY22. Three of these brands – Onabet, Halovate, Sorvate – are ranked No 1 and three are among the top three brands in the segment.

A positive impact is expected for both the companies. For Eris, transaction is expected to help strengthen medical derma portfolio. The market share for Eris in the covered derma market will rise to 4.6 percent against 2.8 percent earlier, and derma’s contribution will rise to 12.7 percent vs 7.6 percent of sales for the company.

Glenmark is ranked second in dermatology in India.

For Glenmark, this is the second sale of non core asset in just about a month. Earlier on December 15, Glenmark announced divesting cardiac brand Razel to JB Chem for Rs 313.7 crore.

Besides the deal, Eris Lifesciences also reported its December quarter earnings, where revenue grew 27 percent from last year. However, the company’s standalone revenue growth of 9 percent is lower than the mid-teens expectations that the street had. EBITDA margin for the quarter also fell 460 basis points to 32 percent while net profit remained flat.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

A day of large deals, FIIs bet on Tata Motors: What kept dealers busy on Monday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A slew of large deals took place in various stocks during Monday’s trading session with three stocks standing out in particular.

Gujarat Fluorochemicals ended nearly 6 percent lower on Monday after 20.1 lakh shares or nearly 1.8 percent of the company’s total equity exchanged hands in a large trade. The shares changed hands at an average price of Rs 3,315 apiece and the transaction was worth Rs 670.7 crore.

Sources within the dealing rooms tell CNBC-TV18 that few HNIs and domestic funds bought the stock on Monday. There is also buzz that the overhang of inter-corporate loans with group entities will also end soon.

Shares of Gujarat Fluorochem have now declined in four out of the last five trading sessions.

Another stock where a large deal took place was Go Fashion where 3.5 percent of the total equity changed hands. A leading private equity investor is said to be the seller in this transaction, according to dealing rooms.

Go Fashion shares also ended 5 percent lower and have declined for three straight trading sessions.

Rainbow Children’s Medical was another stock were as much as 15 percent of the total equity changed hands. While CDC is said to be the seller, a leading sovereign wealth fund is said to be the buyer in the large trade, as per dealers.

Choppy Session; Flat Close

Benchmark indices consolidated on Monday with the Sensex and Nifty ending flat, while the Nifty Bank and the PSU Bank index outperformed.

However, dealers believe that small bits of profit booking was seen in some large private banks on Monday. Flows were mixed with high volumes, considering the number of large deals that took place.

For the near-term, dealers see the Nifty range between 18,300 – 19,000 while expecting small caps to outperform in the near-term.

Besides Gujarat Fluoro, Go Fashion and Rainbow Children, here are some other stocks that have been part of the dealing room chatter today:

Tata Motors: Shares of the automobile giant ended 1.5 percent lower on Monday, declining for the third straight day. However, dealers say that the stock witnessed buy flows at the FII desk and that a leading long-only FII has been an active buyer in the stock. The stock was also in the news on Monday as JLR UK reported a 2.6 percent jump in overall sales to 4,204 units from 4,097 units last year.

Eris Life Sciences: The stock ended lower for the fifth day in a row on Monday, declining 1.7 percent. Dealers are anticipating a large block deal to take place in the stock soon.

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Eris Lifesciences stock soars 10% on tie-up with MJ Biopharm to enter insulin market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After falling for two straight days, shares of Eris Lifesciences jumped as much as 10 percent on Monday after the company said it has formed a joint venture with MJ Biopharm.

Eris Lifesciences will hold a 70 percent stake in the venture and the remaining 30 percent will be held by MJ Biopharm. The initial contracted tenure of the joint venture will be 10 years.

This joint venture that marks the foray of Eris Lifesciences into the field of Biopharmaceuticals,  will primarily engage in the marketing and distribution of Human and Analogue Insulins and GLP-1 agonists among other biopharma products in India.

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The object of this joint venture is the expansion of the product portfolio to offer biotherapeutic options to the patients in the cardio-metabolic segment, Eris Lifesciences said.

The joint venture shall source recombinant human insulin and insulin analogues from the supplier and shall market and distribute them in the domestic market.

Eris Lifesciences will be responsible for ongoing sales and marketing, distribution and pharmacovigilance, while MJ Biopharm will be responsible for supplying products to the joint venture through the terms of a 10-year supply
agreement, the company said.

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More bio-therapeutic formulations are proposed to be launched by the joint venture over time, upon completion of product development and commercialisation by the Supplier.

At 10:47 am, shares of Eris Lifesciences were up 4.1 percent at Rs 734.65 on BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow