MUMBAI: Eris Life Sciences is going to acquire Stride Shasun India branded formulations business as the company has agreed to sell it for Rs 500 crore a recent report in the Economic Times States.
The daily has reported that a formal announcement for the same is going to be made on Monday. The company is joining a select league of Indian pharmaceuticals firms exiting the domestic market to focus on more lucrative international business.
Multiple people with direct knowledge of the matter told ET that the transaction involves domestic brands of Strides while manufacturing facilities of the firm will continue to support its global generic businesses. Domestic brands of Stride Shasun contributed Rs 180 crore to the top line in FY17.
The sole advisor to the transaction is MAPE Advisory Group.
The company, Strides Shasun has eight pharmaceutical plants in India, mostly situated in the southern and western part of India. The transaction is in line with many Indian pharmaceutical companies selling their domestic business to either rivals or global firms to focus more on the lucrative international market.
Earlier this month, Unichem Labs sold its India business to Torrent Pharma for Rs 3,600 crore.
Grown mostly through acquisitions, Strides has made a series of buyouts including CNS business of erstwhile Ranbaxy and brands portfolio of Johnson & Johnson, besides taking a controlling stake in probiotics company Medispan, which was a part of the Chennai-based Shriram Group reports ET.
Eris Life Sciences is one of the fastest growing companies within the chronic and acute categories of the Indian Branded Formulations market such as cardiovascular; anti-diabetes; vitamins; gastroenterology and gynaecology with the focus on developing, manufacturing and marketing products which are linked to lifestyle-related disorders that are chronic in nature and are treated by superspecialist and specialist doctors.