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Eris Lifesciences Limited on Wednesday announced acquisition of Mumbai-based dermatology formulations company Oaknet Healthcare Pvt Ltd for ₹650 crore.
The acquisition gives Eris Lifesciences, which offers chronic and sub-chronic lifestyle-related therapies, an entry into the dermatology and cosmetology segment.
Set up in 2011, Oaknet has reported provisional revenues of ₹195 crore for fiscal 2022 (₹185.75 crore in the previous fiscal).
"Oaknet brings a well-established portfolio of leading brands in dermatology and women’s health to the Eris stable. Eris’ speciality franchise will get a significant impetus with this acquisition, with Eris now present in 87 per cent of the ₹55,000-crore chronic market, with a leading presence in the major chronic therapies in the IPM – cardiology, oral diabetes care, insulin, neuro/CNS and dermatology," Eris Lifesciences said in a statement.
Oaknet has a coverage of nearly 11,000 dermatologists across India and a pan-India sales and distribution presence, it said.
The company's product line covers dermatology, gynaecology, pain management, nutritional, cardiology, and diabetes, among other conditions.
Amit Bakshi, Chairman and Managing Director of Eris Lifesciences Ltd, said, "In line with the Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders."
Krishnakumar V, Executive Director and 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."
Q4 show
Eris Lifesciences Limited's board of directors met on May 3 to consider the financial performance for the fourth quarter of fiscal 2021-22.
The company reported consolidated net profit of ₹80 crore for the quarter ended March 31, 2022, indicating a growth of 18 per cent (₹68 crore) over the same quarter a year ago. The consolidated revenues from operations grew by 10 per cent to ₹306 crore (₹278 crore). Total expenses increased 16 per cent to ₹229 crore (₹196 crore).
For fiscal 2022, the company reported consolidated net profit of ₹406 crore (₹355 crore), up 14 per cent year-on-year. Consolidated revenues from operations grew 11 per cent to ₹1,347 crore (₹1,212 crore).
Eris Lifesciences shares traded at ₹667.55 on the BSE, down nearly 1 per cent, on Wednesday, after the acquisition announcement.
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