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Business News/ Companies / Eris Lifesciences acquires 51% stake in Swiss Parenterals for 637.50 crore
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Eris Lifesciences acquires 51% stake in Swiss Parenterals for ₹637.50 crore

Acquiring Swiss Parenterals will bolster the company's domestic presence with a new injectables-focused branded formulations business and enhance reach in emerging markets

Eris Lifesciences acquires 51% stake in Swiss Parenterals for ₹637.50 crore. (Stock Image: Pixabay)Premium
Eris Lifesciences acquires 51% stake in Swiss Parenterals for 637.50 crore. (Stock Image: Pixabay)

New Delhi: Eris Lifesciences Ltd on Tuesday said it has acquired a 51% stake in the Swiss Parenterals Ltd (SPL) for 637.50 crore, aiming to expand its presence in the sterile injectables market. 

According to a stock exchange filing, this move will increase the total equity stake of Eris and its promoter group in SPL to 70%, with the promoter group additionally buying a 19% stake for 237.50 crore.

The Ahmedabad-based firm expects to complete the financial aspects of the transaction by 31 March 2024. It plans to pay 200 crore of the total amount at the time of closing, with the remainder to be paid 12 months after the deal closes. 

Eris will also issue 8% secured redeemable non-convertible debentures valued at 437.5 crore for 40% of SPL's equity shares through a private placement.

Acquiring Swiss Parenterals will bolster the company's domestic presence with a new injectables-focused branded formulations business and enhance reach in emerging markets, said Amit Bakshi, chairman and managing director, Eris Lifesciences, in a press statement. 

Eris plans to leverage Swiss Parenterals' international distribution networks and regulatory expertise to begin exporting oral solid dosage formulations from its own manufacturing facilities, Bakshi said.

SPL, known for its strong sterile injectables business, operates in over 80 emerging markets and has two facilities in Gujarat. It offers a portfolio exceeding 1,000 dossiers across more than 190 molecules and collaborates with numerous distribution partners worldwide. SPL reported a turnover of 280.30 crore for fiscal year 2022-23 (FY23), marking a three-year compound annual growth rate of 6.8%.

Earlier, Eris acquired brands from Biocon, and Oaknet brands from Glenmark and Dr Reddy’s, marking its entry into the dermatology segment. 

The company also shared its financial results for the quarter ending December 2023, showing a net profit of 102.73 crore, slightly higher than 101.86 crore in the same quarter the previous year. Its consolidated revenue from operations grew by 14.9% to 486.30 crore, compared to 423.26 crore in the third quarter of FY23.

In November last year, Eris announced purchasing the nephrology and dermatology segments of Biocon Biologics Ltd.'s branded formulations business in India for 366 crore.

Eris has previously entered new therapies through acquisitions. It entered neuropsychiatry in 2017 through the acquisition of Strides Shasun’s domestic business, and dermatology in 2022 through the acquisition of Oaknet Healthcare, followed by brand portfolios from Glenmark and Dr. Reddy’s in early 2023.

For the three months to December 2023, Eris reported a net profit of 102.73 crore, marginally up from 101.86 crore a year ago. Consolidated revenue from operations rose 15% on year to 486.30 crore.

Bakshi noted that the company's core domestic formulation business is experiencing sustained momentum, notable margin growth, and vigorous cash flow. With a diversified portfolio, the Emerging Therapies segment now constitutes nearly 30% of Eris's revenue, showcasing a 28% growth rate. 

The company is also enhancing its R&D efforts, currently having over 25 active fixed-dose combination candidates under development. Additionally, the insulin business is scaling up, currently generating a monthly revenue rate of 5 crore, he added.

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Published: 13 Feb 2024, 06:29 PM IST
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