You are here: Home » Companies » News
Business Standard

Eris acquires Oaknet Healthcare for Rs 650 cr for dermatology foray

With a revenue base of Rs 195 crore in FY22, Oaknet brings a portfolio of leading brands in dermatology and women's health to the Eris stable.

Eris Lifesciences | dermatology | Indian companies

Vinay Umarji  |  Ahmedabad 

Eris Lifesciences
Eris Lifesciences | Representative image

Branded formulations major Limited on Wednesday announced its foray into by acquiring 100 per cent stake in Mumbai-based domestic formulations company Oaknet Healthcare Pvt Ltd for Rs 650 crore.

The acquisition will be completed by way of a share purchase agreement as a result of which Oaknet will become a

wholly-owned subsidiary of Eris. The deal will be financed by Rs 300 crore of internal accruals and Rs 350 crore of borrowings.

With a revenue base of Rs 195 crore in FY22, Oaknet brings a portfolio of leading brands in and women’s health to the Eris stable.

The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio, said Krishnakumar V, executive director & chief operating officer of Ltd. "We expect to bring to bear multiple value creation levers including in-house manufacturing, new product launches, expansion of field force productivity and enhancement of operational efficiency,” he said.

The Oaknet acquisition will also provide an impetus to Eris’ specialty franchise with the latter now present in 87 per cent of the Rs 55,000 crore chronic market. Eris now has a leading presence in the major chronic therapies in the Indian pharmaceutical market, including in cardiology, oral diabetes care, insulin, neuro/CNS and .

With 100 per cent coverage and 60 per cent penetration of roughly 11,000 dermatologists across India, Oaknet has a pan India sales and distribution presence.

Commenting on the acquisition, Amit Bakshi, chairman & managing director of Ltd said that in line with Strides and Zomelis acquisitions, the company is confident that the Oaknet transaction will create long-term value for shareholders. “As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of dermatology and cosmetology,” he said.

Eris posted a 17 per cent rise in its profit after tax at Rs 80 crore for the fourth quarter ended March 31, 2022 and 14 per cent at Rs 405.8 crore for the full financial year 2021-22, with quarterly and annual PAT margins of 26 per cent and 30 per cent, respectively.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, May 04 2022. 10:01 IST