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Eris Lifesciences buys Strides Shasun's domestic business in Rs 500 cr deal

Enters central nervous system (CNS) segment, breaks into top 25 domestic ranking

Aneesh Phadnis  |  Mumbai 

Eris Lifesciences
Eris Lifesciences

Ahmedabad-based has acquired the domestic formulations business of Shasun in a Rs 500-crore deal, marking its foray into the fast-growing (CNS) segment.

This is Eris Lifesciences’ fourth acquisition in 18 months and with this deal it breaks into the league of the top 25 in India with a 1 per cent market share and annual sales of Rs 1,100 crore. On its part, Shasun is exiting the domestic market as it sharpens focus on international sales. It will use the sale proceeds to repay Rs 400 crore debts.

The two signed an agreement on Saturday, in which will acquire 130 Shasun brands in the neurology, nutraceuticals and gastrointestinal segments, along with employees who form part of the business. will acquire the marketing and distribution rights for the brands in India while Shasun will retain the global rights for these drugs. The acquired drugs had sales of Rs 181 crore in 2016-17.

“We are entering the segment with this acquisition. The market for drugs in India is Rs 4,000-5,000 crore and it is growing at 10-15 per cent a year,” said Amit Bakshi, managing director,

He said the deal would be earnings-accretive from day one and would be funded through a mix of internal accruals and debt. plans to transfer the production of acquired drugs to its Guwahati plant over the next 12 months.

Shop list

 acquisitions in last 18 months
  • Shasun's domestic formulations for Rs 500 crore
  • UTH Healthcare, a nutraceuticals maker, for Rs 12.85 crore
  • 75.48 per cent stake in Kinedex Healthcare, which caters to mobility-related disorders
  • Trademarks of 40 brands from Amay to strengthen portfolio in the cardiovascular and anti-diabetics therapeutic segments

First Published: Sat, November 18 2017. 22:44 IST
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