Biocon Biologics, the biosimilars company and a subsidiary of Biocon Ltd., announced a long-term commercial collaboration with Eris Lifesciences to expand patient access to its portfolio of metabolics, oncology and critical care products in India.
The total transaction value is ₹1,242 crore, which represents an accretive multiple of 3.4 times of revenue and 18 times of EBITDA, the company said in an exchange filing.
The collaboration is in-line with Biocon Biologics' strategy to unlock value from its legacy business of branded formulations and extend its existing partnership with Eris for Biocon's Nephrology and Dermatology business announced in December 2023.
As part of the deal 430 employees associated with the business are expected to transition to Eris, the company said.
The transaction is likely to come into effect before April 15, 2024, subject to customary closing conditions.
In November last year, Biocon Biologics had signed definitive agreements with Eris Life for divesting its dermatology and nephrology branded formulations business units in India.
“This strategic collaboration with Eris Lifesciences for our portfolio of Metabolics, Oncology, and Critical Care products in India aligns with our commercial strategy to maximize patient reach and market potential," Shreehas Tambe, CEO & MD of Biocon Biologics was quoted as saying.
Shares of Biocon ended 4.3% higher at ₹263.75.
First Published: Mar 14, 2024 3:19 PM IST
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