Eris Lifesciences Ltd., a prominent player in the Indian pharmaceutical industry, has announced the acquisition of a 51 percent equity stake in Swiss Parenterals Ltd. for Rs 637.50 crore, expanding its presence in sterile injectables. This move marks Eris’s entry into RoW Export Markets.
Amit Bakshi, Chairman & Managing Director of Eris Lifesciences Ltd., expressed that the acquisition of Swiss Parenterals will bolster their footprint in India, particularly in the domain of injectables-focused Branded Formulations. Additionally, the emphasis on emerging markets by Swiss Parenterals aligns well with Eris’s strategy.
Through this deal, Eris’s Promoter group will also acquire an additional 19 percent stake in Swiss for Rs 237.50 crore, resulting in Eris and its Promoter Group collectively holding 70 percent equity in SPL. The payment for Eris’s 51 percent stake will include Rs 200 crore at the deal’s closure, with the remainder due 12 months afterward. The transaction is expected to be finalized by March 31, 2024, involving cash consideration and issuance of Secured Redeemable Non-Convertible Debentures at 8 percent.
Swiss Parenterals, founded in 1997, is a key player in the sterile injectables business across 80+ emerging markets. It operates two facilities in Gujarat with accreditations from over 50 regulatory authorities worldwide. Eris plans to expand Swiss Parenterals’ business and initiate exports of oral solid dosage formulations from its manufacturing facilities to semi-regulated markets, leveraging Swiss’s distribution channels and regulatory expertise.
Eris Lifesciences reported a 0.8 percent increase in consolidated net profit to Rs 102.7 crore for the December quarter, with revenue up 14.9 percent to Rs 486.3 crore. The company’s EBITDA rose by 27.9 percent to Rs 175.5 crore, with an EBITDA margin of 36 percent.
