Dr Reddy’s Laboratories (DRL) on Thursday announced the signing of a deal to divest nine non-core brands in the dermatology segment to Eris Lifesciences. Under the agreement, DRL will assign Eris the trademark of these brands for a consideration of Rs 275 crore.
The divested portfolio saw sales of `60 crore in India, according to an IQVIA MAT report in December 2022.
MV Ramana, CEO, branded markets (India & emerging markets), Dr Reddy’s, said: “We aspire to break into the top 5 in India. Today’s announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions that are a strategic fit and divestment of non-core brands. This deal is a further step towards consolidating our core and helping us deliver focused play in India.”
Eris Lifesciences will acquire part of the dermatology portfolio of nine trademarks along with their applicable line extensions, collectively referred to as brands.
The transaction helps augment and expand the cosmetic dermatology business of Eris Lifesciences by way of expansion in the product offerings, it said. The transaction is likely to be completed before March 31, 2023.
Going ahead with its expansion plan, Dr Reddy’s Laboratories SA, a wholly-owned subsidiary of DRL, had last month entered into a definitive agreement to acquire the US generic prescription product portfolio of Australia- based Mayne Pharma Group. The portfolio includes approximately 45 commercial products, four pipeline products and 40 approved non-marketed products, including a number of generic products focused on women’s health.