Eris Lifesciences scouting for acquisitions to diversify biz

Eris Lifesciences is scouting for acquisitions as part of its strategy to diversify and grow beyond cardio-diabetes therapy that generates bulk of its revenues.
The Ahmedabad-based company is open to acquiring standalone brands or portfolios that plug gaps in the non-cardio-metabolic therapeutic segments, chief operating officer V Krishnakumar told ET.

"Today, our fastest growing therapies are neurology, dermatology and gynaecology. These three put together are 20% of our business and they are growing at 25% per annum. We have therapy gaps for each of them," said Krishnakumar. The company is open to acquisitions in the vitamins segment, he said.

Eris Lifesciences is a pure-play branded formulation business, focused on chronic and sub-chronic therapies. Funding acquisitions will not be a problem, said Krishnakumar, since the company is net debt free and can expand its balance sheet if required.

"We have done three deals - Zomelis, Strides (domestic formulation business) and Oaknet - and we are happy," said Krishnakumar.

Through acquisition of Strides domestic formulations portfolio in 2017, Eris Lifesciences got a toehold in the neurology and psychiatry segments, followed by another acquisition in 2019 of anti-diabetes brand Zomelis, generic version of Vildagliptin, from Novartis, which became a ₹100 crore brand for the company. Earlier this year, the company bought Oaknet for ₹650 crore. Eris Lifesciences ended 2021-22 with revenues of ₹1,347 crore, with 53% contributed by cardiology and anti-diabetes medications.

Krishnakumar said revenue is expected to increase 30% this financial year, as the cardiometabolic market, which was soft in 2021-22, has seen a strong rebound in the first quarter and the company is also lining up several new product launches and line extensions of existing brands in the coming quarters.