Eris Lifesciences announced its acquisition of a 100% stake in Mumbai-based dermatology focused domestic formulations company Oaknet Healthcare for a total consideration of Rs 650 crore.

With a revenue base of Rs 195 crore 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 Rs 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, 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 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. The deal will be financed by Rs 300 crore of internal accruals and Rs 350 crore of borrowings.

Eris Lifesciences is the only publicly listed Indian pharma company with a pure-play domestic branded formulations business model. Established in 2007, Eris is by far the youngest company in the IPM Top-25. Since inception, it has focused on chronic and sub chronic lifestyle-related therapies and on high-end super-specialist doctors and consulting physicians.