Amit Bakshi, MD, Eris Lifesciences said the brands that will be acquired are more of a franchise, which could be help built more number of brands and a bigger franchise could be created.
Eris Lifesciences on Saturday said it has entered into a definitive agreement to buy India branded generics business of Strides Shasun for an aggregate cash consideration of Rs 500 crores.
As per the terms of the agreement, Eris will acquire the marketing and distribution rights for the said portfolio of products in India, along with the employees forming part of the business. Strides will retain the global rights to the products.
Throwing more light on the above deal, Amit Bakshi, MD, Eris Lifesciences said the brands that will be acquired are more of a franchise, which could be help built more number of brands and a bigger franchise could be created.
When asked where this deal would lead in terms of market share, he said since central nervous system (CNS) segment is the third largest chronic market after cardiology and diabetes, the above deal would be a natural fit in terms of headroom for products that we can now sell.
He said the business which they have now got from Strides Shasun is of 70 percent gross margins and when it merges with their own set up, in the next three-four quarters the overall margins for them would be around 75 percent plus.
Talking about building their India business, he said they still have lot of headroom to get more products.