Eris acquires Oaknet Healthcare for Rs 650 crore to gain foothold in derma segment

Eris Lifesciences on Wednesday said it has entered into the dermatology segment through acquisition of Oaknet Healthcare for Rs 650 crore in an all cash deal.

The drug maker said 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.

Oaknet has sales of Rs 195 crore in FY21.

Eris said Oaknet has near 100% coverage of around 11,000 dermatologists across India with a 60% penetration and has a pan India sales and distribution presence.

Along with dermatology, the company sell products in other therapeutic categories such as gynecology, pain management, nutrition, cardiology and diabetes

“As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of dermatology and cosmetology," said Amit Bakshi, chairman & managing director of Eris.

"In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders,” he added.

Krishnakumar V, executive director & chief operating officer of Eris said 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,” Krishnakumar said.