Eris Lifesciences to acquire Oaknet Healthcare for Rs 650 crore

Written by Ruchika Sharma Published On 2022-05-04T11:19:27+05:30 | Updated On 4 May 2022 12:14 PM IST

Eris Lifesciences to acquire Oaknet Healthcare for Rs 650 crore

Mr Krishnakumar V, Executive Director & Chief Operating Officer of Eris Lifesciences Ltd., added, "The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio."

Mumbai: Eris Lifesciences Limited, a Indian branded formulations manufacturing company, has announced its acquisition of a 100% stake in Mumbai-based dermatology focused domestic formulations company Oaknet Healthcare Pvt Ltd for a total consideration of Rs 650 crore (INR 6,500 mn).

The deal will be financed by INR 3,000 mn of internal accruals and INR 3,500 mn of borrowings.

Commenting on the acquisition, Mr. Amit Bakshi, Chairman & Managing Director of Eris Lifesciences Ltd., said, "As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of Dermatoloy and Cosmetology. In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders."

Mr. Krishnakumar V, Executive Director & 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."

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.

With a revenue base of INR 1,950 million in FY22, Oaknet brings a well-established portfolio of leading brands in Dermatology and Women's Health to the Eris stable. Eris' Specialty Franchise will get a significant impetus with this acquisition with Eris now present in 87% of the INR 55,000 crore Chronic Market, with a significant presence in the major Chronic Therapies in the IPM – Cardiology, Oral diabetes care, Insulin, Neuro/CNS and Dermatology. Oaknet has near 100% coverage of approx. 11,000 Dermatologists across India with a 60% penetration and has a pan India sales and distribution presence.

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Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751