Eris Lifesciences Q4 PAT up 21% YoY on strong show by superspecialty biz

Consolidated total income up 13%; robust anti-diabetic sales, new product pipeline, expanded coverage of cardiologists support better numbers

Riding on some of its top brands in the chronic superspecialty segment, formulations manufacturing company Eris Lifesciences Ltd has posted a 21 per cent growth in its consolidated profit after tax (PAT) at Rs 68.25 crore for the quarter ended March 31, 2021.

The company had posted a PAT of Rs 56.27 crore for Q4 of previous fiscal 2019-20. Eris' consolidated total income for the fourth quarter of FY 2020-21 grew by 13 per cent to stand at Rs 280.42 crore, up from Rs 247.5 crore of the corresponding quarter last year.

In a year full of multiple disruptions, Eris Lifesciences clocked a 15 per cent growth in MR productivity and grew by 6.2 per cent year-on-year (YoY) in FY21, outperforming by 2x the covered market which grew at 2.9 per cent YoY, making it the third consecutive year of Eris outperforming the covered market and the Indian Pharmaceutical Market (IPM).

"Our focus on building sustainable brands paid us rich dividends in FY'21 as prescriber preference shifted to established incumbent brands, following the drastic reduction of MR-Doctor interactions during the pandemic period. Our dominant positions in our core therapies enabled us to successfully launch multiple new products this year - Gluxit, ZACD, Zayo, Bricet and Rivalto, to name a few. We clocked a 15 per cent growth in MR productivity despite multiple disruptions on account of lockdowns. We have an exciting period of organic growth coming up in the next 3-4 years, driven by multiple factors," said Krishnakumar V, Executive Director & Chief Operating Officer of Eris Lifesciences Ltd.

According to Krishnakumar, the company has adopted a three-pronged strategy.

"Firstly, we have a strong pipeline of new product launches, driven by upcoming patent expirations in the cardio metabolic segment. Secondly, our market standing in diabetes enabled us to take the lead in the management of post-Covid early onset diabetes (unmasking diabetes) – Gluxit and Zomelis are strategic products for us in this regard. Thirdly, we are expanding our coverage of cardiologists and consulting physicians by up to 50 per cent. We are making investments in technology in order to further improve our sales productivity. We continue to look for high-return in-licensing and acquisition opportunities, in order to supplement our organic growth initiatives," he added.

Among its portfolio, the cardio metabolic segment, which forms 59 per cent of Eris' revenue, grew 9.7 per cent in FY21, marginally outperforming its covered market which grew by 9.4 per cent. On the other hand, the Vitamins, Minerals and Nutrients (VMN) segment, which forms 20 per cent of its revenue, grew by 14.8 per cent in comparison with the covered market which grew by 8.6 per cent. Moreover, Eris' top-15 mother brands, which contribute nearly 80 per cent of its revenue, grew by 8.9 per cent during the year.

On the back of this, Eris Lifesciences posted a 20 per cent growth in its consolidated net profit for the full financial year 2020-21 at Rs 355.14 crore, up from Rs 296.51 crore in previous fiscal 2019-20. Its consolidated total income for FY21 grew by 12 per cent to Rs 1,220.57 crore, up from Rs 1,089.45 crore in FY20.

Meanwhile, commenting on the results, Amit Bakshi, Chairman & Managing Director of Eris Lifesciences Ltd, said, "FY21 was a game changer for us during which we have registered robust improvement across all business and financial metrics. We were able to harness the power of our fundamental business pillars - leadership brands in chronic superspecialty, a strong cash flow generating business model, a debt-free balance sheet, and our consistent focus on operational excellence - to successfully navigate what has been one of the most challenging years ever."