Strides Shasun to disinvest India Generic Business; Eris Lifescience to acquire at 500 Crores

Eris Lifesciences has entered into a definitive agreement to acquire India branded generics business of Strides Shasun for an aggregate cash consideration of Rs 500 crores.

Stride Shasun’s Portfolio:

• Strides’ India branded generics business comprises of a portfolio of 130 plus brands in the domains of neurology, psychiatry, nutraceuticals and gastro.
• For Stride Shasun, this disinvestment  is the outcome of our portfolio re-prioritization, company will focus more sharply on larger regulated markets

About the deal:

• As per the terms of the agreement, Eris will acquire the marketing and distribution rights for the said portfolio of products in India, along with the employees forming part of the business.
• Strides will retain the global rights to the products.
• The acquisition is Eris’s fourth—and the largest–in the last 18 months, the company will be among the top ten companies in the central nervous system (CNS) segment.
• The India branded generics business being divested by Strides had sales of Rs 181 crores in FY 2017.
• The transaction is a good strategic fit for Eris and will strengthen our position in the key segments of CNS and Gastro-Intestinal therapies.
• Eris expect to realize cost and revenue synergies from this transaction

About Eris’s Portfolio:

• Eris is already among the top 20 companies in the cardiology segment and ranks among the top ten in the diabetology segment.
• Since inception in 2007, Eris has focused on the “chronic segments” of cardiology and diabetology.
• Eris had forayed into the CNS segment only recently.
• This acquisition cements Eris’s position in the top three chronic segments. Post-acquisition, Eris will break into the league of top 25 companies having a market share of more than 1% in the Indian Pharmaceutical Market.

Eris has expanded it’s business presence in different segments with operating division: