Eris Lifesciences, Shasun Strides shares rise on Rs 500 crore deal

NEW DELHI: Shares of Eris Lifesciences and Shasun Strides surged on Monday after the companies entered into a definitive agreement for sale of Strides’ India branded generics business to the former for an aggregate cash consideration of Rs 500 crore.

The companies made the announcement on Saturday.

Following the announcement, shares of Eris Lifesciences climbed 6.70 per cent to close the session at Rs 624.30 on BSE. Strides Shasun stock, on the other hand, rose 3.81 per cent to end at Rs 817.70.

Strides’ India branded generics business comprises of a portfolio of more than brands in the domains of neurology, psychiatry, nutraceuticals and gastro. As per the agreement, Eris will acquire the marketing and distribution rights of the products in India while Strides will retain the global rights for these products, both the companies said in a joint notification to the exchanges.

The India branded generics business being divested by Strides had sales of Rs 181 core FY 2017, the statement said. The acquisition is Eris’ fourth and the largest buyout in the last 18 months.