The dermatology brands sold by Dr. Reddy's to Eris Lifesciences include Hydroheal, Revilus, Avarta, Aquaderm, and others


Dr. Reddy's finished dosage facility in Hyderabad, India. (Credit: Arichuvadi from Wikimedia Commons)

Indian drug company Eris Lifesciences has agreed to acquire nine dermatology brands from Dr. Reddy’s Laboratories in a $33.2m deal to expand its portfolio in cosmetic dermatology.

Dr. Reddy’s Laboratories divested its non-core brands such as Hydroheal, Revilus, Avarta, Aquaderm, and others in the Indian market to Eris Lifesciences as part of the deal.

According to the stock exchange filing of Eris Lifesciences, the all-cash deal is expected to be closed on or before March 31.

The transaction is expected to expand the cosmetic dermatology business of the drug maker through the expansion of the product portfolio.

Under the agreement, Eris Lifesciences will be assigned the trademark and their applicable line extensions of the brands by Dr. Reddy’s.

Dr. Reddy’s branded markets (India & emerging markets) CEO MV Ramana said: “India is a focus market for us. We aspire to break into the top 5 in India.

“Today’s announcement is in line with our stated intention of pursuing a strategy that involves growing brands organically combined with acquisitions that are a strategic fit and divestment of non-core brands.

“This deal is a further step towards consolidating our core and helping us deliver focused play in India in keeping with our purpose of ‘Good Health Can’t Wait’.”

Dr. Reddy’s said that the divestment is expected to strengthen its core brands.

In January this year, Eris Oaknet Healthcare, a fully-owned subsidiary of Eris Lifesciences, announced the acquisition of a portfolio of dermatology brands from Glenmark Pharmaceuticals. The deal was intended to strengthen its footprint in the anti-fungal and anti-psoriasis segments.

Last month, Dr. Reddy’s Laboratories signed an agreement with Australia-based Mayne Pharma Group to acquire the latter’s US generic prescription product portfolio. As per the agreement, the Indian pharmaceutical firm will acquire the portfolio for an upfront payment of around $90m in cash.