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Updated March 14th, 2024 at 15:47 IST

Biocon arm partners with Eris Lifesciences for branded formulations business

Following the announcement of the deal, Biocon shares surged as much as 8% to an intraday high of Rs 273.45.

Reported by: Business Desk
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Deal | Image:Pixabay
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Biocon-Eris Life deal: Bengaluru-based Biocon, a leading biopharmaceutical company, announced on Thursday that its subsidiary, Biocon Biologics, has approved the transfer of its branded formulations business in India to Eris Lifesciences.

Following the announcement of the deal, Biocon shares surged as much as 8% to an intraday high of Rs 273.45.

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Under the terms of the agreement, Biocon Biologics aims to enhance patient access to its portfolio of Metabolics, Oncology, and Critical Care products in India through a long-term commercial collaboration with Eris Lifesciences. The collaboration aligns with Biocon Biologics' strategy to unlock value from its branded formulations business, which has been built over the past two decades.

This deal extends the existing partnership between Biocon Biologics and Eris, which was initiated for Biocon's Nephrology and Dermatology businesses in December 2023.

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As part of the deal, Biocon Biologics has entered into a 10-year supply agreement with Eris. The total transaction value is pegged at Rs 1,242 crore, reflecting an accretive multiple of 3.4 times of revenues and 18 times of EBITDA.

Over 430 employees associated with the business are expected to transition to Eris, ensuring continuity for both employees and patients.

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Biocon shares ended 4.23 per cent higher at Rs 263.80 and Eris Lifesciences advanced 3.32 per cent to settle at Rs 858.

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Published March 14th, 2024 at 15:47 IST

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