Biocon Biologics CEO terms Eris Lifesciences deal as enabling, not restricting

Biocon Biologics, the biosimilars company and a subsidiary of Biocon., sold its Indian formulation business to Eris Lifesciences for ₹1,242 crore.

Biocon Biologics also entered into a long-term commercial collaboration with Eris Lifesciences to expand patient access to its portfolio of metabolics, oncology and critical care products in India.

Tambe sees this as a complementary collaboration between two existing partners building on a relationship that allows to deliver on that ambition of reaching one in five insulin-dependent diabetics in the country.

Biocon Biologics will continue to manufacture and supply its high-quality biologics to patients in India. “We are not looking to exit anything, we are very committed to India and patients here and we will be looking to strengthen our presence along with Eris Lifesciences - a chronic therapy-focused drug firm - who will represent far stronger commercial reach than we had,” he mentioned.

The transaction value of ₹1,242 crore translates to an accretive multiple of 3.4 times of revenue and 18 times of earnings before interest, taxes, depreciation, and amortisation (EBITDA).

The US Food and Drug Administration (USFDA) has classified Biocon Biologics’ Malaysian plant as Official Action Indicated (OAI).

Tambe said the company is working with the USFDA to see how it can resolve it.