Eris Lifesciences has entered the dermatology segment with the acquisition of 100% stake in Mumbai-based dermatology Company Oaknet Healthcare for a total consideration of Rs 650 crore.
Eris will fund the acquisition with internal accruals of Rs 300 crore and borrowings of Rs 350 crore, for the acquisition. The acquisition will take place through a share agreement, post which Oaknet will become a wholly-owned subsidiary of Eris.
Commenting on the acquisition, Amit Bakshi, Chairman & Managing Director, Eris Lifesciences Ltd said, “As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of Dermatology and Cosmetology. In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders.”
Krishnakumar V, Executive Director & Chief Operating Officer of Eris Lifesciences Ltd., added, “The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio. 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.”
By FY22, Oaknet will have a revenue base of Rs 195 crore. With a 60 percent penetration and a pan-India sales and distribution footprint, the company has nearly 100 percent coverage of over 11,000 Dermatologists across India.
With this acquisition, Eris’ specialty franchise will get a significant impetus, the Company said in a press release.
Eris is present in 87% of the Rs 55,000 crore Chronic Market with a leading presence in the major Chronic Therapies in the Indian Pharmaceutical Market (IPM) like Cardiology, Oral diabetes care, Insulin, Neuro/CNS and Dermatology.
Oaknet has near 100% coverage of approximately 11,000 Dermatologists across India with a 60% penetration and has a pan India sales and distribution presence.