Eris Life to acquire Strides India business for Rs 500 crore
MUMBAI: Bengaluru-based drug maker Strides Shasun has agreed to sell its domestic branded formulations business to Ahmedabad-based Eris Lifesciences for Rs 500 crore, joining a select league of Indian pharmaceuticals firms exiting domestic market to focus on more lucrative international business.
The transaction involves domestic brands of Strides, while manufacturing facilities of the firm will continue to support its global generic businesses, multiple people with direct knowledge of the matter said.
Boards of both the companies are expected to meet on Saturday and a formal announcement is due as early as on Monday, they said.
MAPE Advisory Group acted as the sole advisor to the transaction.
Both Strides and Eris did not respond to mails seeking comments as of press time on Friday.
Domestic brands contributed Rs 180 crore to Strides’ top line in FY17.
The company has eight pharmaceutical plants in the country, mostly in southern and western India. The transaction is in line with many Indian pharmaceutical companies selling their domestic business to either rivals or global firms to focus more on the lucrative international market.
Earlier this month, Unichem Labs sold its India business to larger rival Torrent Pharma for Rs 3,600 crore. In 2014, Torrent acquired Elder Pharma’s domestic business.
Grown mostly through acquisitions, Strides has made a series of buyouts including CNS business of erstwhile Ranbaxy and brands portfolio of Johnson & Johnson, besides taking a controlling stake in probiotics company Medispan, which was a part of the Chennai-based Shriram Group.