Biocon Biologics Ltd(BBL), a subsidiary of Biocon, has entered into a definitive agreement with Eris Lifesciences (Eris) for divesting its dermatology and nephrology branded formulations business units in India for ₹366 crore.

The total transaction value of the divestment includes working capital conveyed as part of the deal and represents an accretive multiple of 4x on revenues and 22x on EBITDA. The transaction is a ’slump sale’ that will enable a seamless transfer of the product brands and employees associated with these businesses.

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Shreehas Tambe, CEO and Managing Director, Biocon Biologics, said: “This divesture of non-core assets allows us to unlock value within our branded formulations portfolio in India and sharpen focus on our core therapy areas such as diabetes, oncology, and immunology.”

After the deal closes, over 120 employees of the two business units are expected to transition to Eris, ensuring continuity for both employees and patients, the company said.

The divestiture is expected to close by the end of November, subject to customary closing conditions. The divestment of the non-core branded formulations business units in India is in line with BBL’s strategy to sharpen focus on core therapy areas as a fully integrated biosimilars company.

Amit Bakshi, Chairman and Managing Director of Eris Lifesciences Ltd, said: “The acquisition of Biocon Biologics’ nephrology and dermatology branded formulations businesses in India is in line with our strategic goals as well as our capital allocation framework. I am confident that this acquisition will deliver value to shareholders in line with the deals we have done in FY23 and prior.”