Eris Lifesciences Limited has revealed the purchase of nine dermatology brands from Dr Reddy's Laboratories for a total of Rs 2,750 million. The majority of the products are in cosmetology categories such as anti-acne, moisturisers, cleansers, anti-aging, hair health, and melasma.
With this acquisition, Eris will be ranked third in its dermatology-covered industry, with a 7% market share. The deal will be financed through borrowings and will be completed in the coming days.
Eris entered the dermatology sector in May 2022 with the Rs 6,500 million acquisition of Oaknet Healthcare, and strengthened this franchise with the Rs 3,400 million acquisition of nine dermatology brands from Glenmark in January 2023.
Amit Bakshi, Chairman and Managing Director of Eris Lifesciences Ltd, commented on the purchase, saying, "It took us 13 years to add the first 1000 crores of revenue since our inception in 2007. However, we are adding the next 1000 crores of revenue in just four years by combining internal cash flows with external financing to drive a blend of organic and inorganic growth while preserving our margins."
The deal comes two months after Eris said it would acquire a portfolio of dermatology brands from Glenmark Pharmaceuticals Ltd for 3.4 billion rupees to deepen its presence in the anti-fungal and anti-psoriasis segments.
Eris' shares were trading 1.4% lower as of 2:33 p.m. IST and were headed for a sixth straight session of losses. They have fallen 9.2% since announcing the deal with Glenmark.