Eris Lifesciences jumps after deal with Strides Shasun

Eris Lifesciences rose 6.17% to Rs 621.20 at 11:50 IST on BSE after the company said it acquired Strides Shasun's India branded generics business for Rs 500 crore.

The announcement was made on Saturday, 18 November 2017.

Meanwhile, the S&P BSE Sensex was up 15.97 points, or 0.05% to 33,358.77.

On the BSE, 44,000 shares were traded in the counter so far, compared with average daily volumes of 20,226 shares in the past one quarter. The stock had hit a high of Rs 628.20 and a low of Rs 598.50 so far during the day. The stock hit a record high of Rs 728 on 14 July 2017. The stock hit a record low of Rs 510.50 on 11 August 2017.

The stock had underperformed the market over the past one month till 17 November 2017, rising 1.96% compared with 2.94% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 0.83% as against Sensex's 5.77% rise.

Shares of Eris Lifesciences were listed on the stock exchanges on 29 June 2017. The stock made a debut on the bourses at Rs 612 per share, a premium of 1.49% over its initial public offering (IPO) price of Rs 603 per share. On that day, it settled at Rs 601.05 on BSE, a discount of 0.32% over its IPO price.

The large-cap company has equity capital of Rs 13.75 crore. Face value per share is Re 1.

Strides Shasun and Eris Lifesciences announced entering into definitive agreements for sale of Strides' India branded generics business to Eris Lifesciences for an aggregate cash consideration of Rs 500 crore. The transaction is subject to customary closing conditions and parties intend to close the transaction by 30 November 2017.

Strides' India branded generics business comprise of a portfolio of 130+ brands in the domains of neurology, psychiatry, nutraceuticals, gastro etc. along with the employees forming part of the business. In terms of the agreement, Eris Lifesciences will acquire the marketing and distribution rights of the said portfolio of products in India while Strides will retain the global rights for these products.

Shares of Strides Shasun were up 2.32% at Rs 806. Strides Shasun is a vertically integrated global pharmaceutical company. The company has three business verticals, viz., regulated markets, emerging markets and active pharmaceutical ingredients.

On a consolidated basis, net profit of Eris Lifesciences rose 34.50% to Rs 93.14 crore on 25.29% rise in net sales to Rs 249.23 crore in Q2 September 2017 over Q2 September 2016. The result was announced on Saturday, 18 November 2017.

Eris Lifesciences is one of the fastest growing companies within the chronic and acute categories of the Indian Branded Formulations market such as: cardiovascular; anti-diabetes; vitamins; gastroenterology and gynaecology.

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