Listed pharmaceuticals player Eris Lifesciences Ltd has acquired 51% stake in sterile injectables company Swiss Parenterals for Rs 637.5 crore (around $76.7 million), thus foraying into the rest of the world (RoW) export market.
The nature of the acquisition will be a mixture of cash as well issuing 43,750 redeemable NCDs to against equity shares of Swiss Parenterals on private placement basis.
Eris, backed by ChrysCapital and Kuwait Investment Authority, will pay Rs 200 crore at closing of acquisition, with the remainder due 12 months later. The deal is expected to achieve financial closure by 31 March, 2024, the company said in a statement.
“The acquisition of Swiss Parenterals will help us strengthen our India footprint through the launch of a domestic injectables-focussed branded formulations business. Besides, the emerging markets focus of Swiss Parenterals complements our India focus,” said Amit Bakshi, chairman & managing director of Eris Lifesciences.
“In addition to growing the Swiss Parenterals business further, we will kickstart exports of oral solid dosage formulations from Eris’ manufacturing facilities to various semi-regulated markets by leveraging Swiss’ overseas distribution channels and regulatory expertise,” he added.
Swiss Parenterals Ltd, founded in 1997, is a prominent player in the sterile injectables sector across over 80 emerging markets in Africa, the Asia Pacific, and Latin America. The company's two Gujarat facilities are accredited by over 50 regulatory authorities worldwide.
With a diverse portfolio of more than 1,000 dossiers across over 190 molecules, Swiss Parenterals collaborates with various distribution partners in its target markets.
Eris Life, meanwhile, had previously expanded its presence in the dermatology space through acquisitions, including Oaknet Healthcare, brand portfolios from Glenmark and Dr. Reddy's and Biocon Biologics Ltd’s dermatology and nephrology branded formulations business units in India, last year. The company entered the neuropsychiatry vertical in 2017 with the acquisition of Strides Pharma’s domestic business.
Eris reported a 0.8% rise in consolidated net profit to Rs 102.7 crore for the third quarter of this fiscal year, with revenue at Rs 486.3 crore, up 14.9% from the previous year.
Its earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at Rs 175.5 crore, up 27.9% the year ago.
Founded in 2007, Eris Lifesciences operates with a pure-play domestic branded formulations business model, boasting a distribution network of over 2,000 stockists and more than five lakh chemists, and employs 5,000 individuals across offices in Ahmedabad and Mumbai.
The company's stock ended Tuesday's trading session with a gain of 1.1% at Rs 923.55 apiece on the Bombay Stock Exchange.
