Eris enters Dermatology therapy through the acquisition of Oaknet Healthcare

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.

India

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New Delhi, May 04, 2022: 

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

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 leading 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.

Commenting on the acquisition, 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.”

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.”

 Deal Highlights

• Eris will acquire 100% stake in Oaknet for INR 6,500 mn.
• 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 INR 3,000 mn of internal accruals and INR 3,500 mn of borrowings.

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