Biocon Biologics Sells Dermatology & Nephrology Units to Eris for Rs 366 cr

New Delhi, Nov 8 (PTI) Biocon Biologics on Wednesday said it has inked a pact with Eris Lifesciences for the sale of its dermatology and nephrology branded formulations business units in India for Rs 366 crore.

The companies have inked definitive agreements for the same.

The transaction is a slump sale that will enable a seamless transfer of the product brands and employees associated with these businesses, Biocon Biologics, a unit of Biocon Ltd, said in a statement.

The total transaction value of the divestment is Rs 366 crore, inclusive of working capital conveyed as part of the deal, it added.

Post-deal close, over 120 employees of the two business units are expected to transition to Eris, ensuring continuity for both employees and patients, Biocon Biologics said.

The divestiture is expected to close by the end of November 2023, subject to customary closing conditions, it added.

The divestment of the non-core branded formulations business units in India is in line with the company's strategy to sharpen focus on core therapy areas as a fully integrated biosimilars company, it said.

"This divesture of non-core assets allows Biocon Biologics to unlock value within our branded formulations portfolio in India and sharpen focus on our core therapy areas like diabetes, oncology and immunology," Biocon Biologics CEO and Managing Director Shreehas Tambe said.

The company believes that Eris Lifesciences is well positioned to build further on the dermatology and nephrology franchise in India, he added.

Eris Lifesciences Chairman & Managing Director Amit Bakshi said that the company has successfully demonstrated its ability to turn around and create value in acquired businesses.

"The acquisition of Biocon Biologics' Nephrology and Dermatology Branded Formulations businesses in India is in line with our strategic goals as well as our capital allocation framework," he added.