What has Driven the Growth of Eris Lifesciences, the pharma major?

What has Driven the Growth of Eris Lifesciences, the pharma major? 2023 | The Lifesciences Magazine

Eris Lifesciences Ltd (Eris) is a pharmaceutical company. It comes up with, makes, and sells medicines that treat both long-term and short-term illnesses. The company makes tablets, capsules, sprays, syrups, drops, powder, injections, cookies, ointments, and soft gels to treat pain, diabetes, cardiovascular, gynecological, respiratory, neurological, and gastrointestinal disorders. Eris also sells nutrition formulations, vitamins, and minerals. Let’s get to know about the Growth of Eris Lifesciences company.

This is the reason that has Driven the Growth of Eris Lifesciences;

The company sells its products under the names Alerfix, Atorsave F, Axunil, Carpela, Citelec, DeepSenz, Obicure, Glimisave, Tendia, Cyblex, Zomelis, Otogesic, Raricap, Recontrex, and others. It sells its products all over India through a network of distributors and drug stores. The company has a factory in the Indian city of Guwahati, in the state of Assam. Eris is based in Ahmedabad, which is in the Indian state of Gujarat.

Recently, Eris Lifesciences paid Rs 340 crore to Glenmark in order to buy their derma portfolio, which included nine brands, the highest of which had a leading position in the pharmaceutical sector.

Analysts are optimistic about the Growth of Eris Lifesciences’ prospects for development in the years to come because of the company’s outperformance in its core cardio metabolic sector and the progressive expansion of its derma portfolio via inorganic growth.

Eris reported that their revenue for the third quarter of FY23 climbed by 27 percent year-on-year (YoY) to a total of Rs 420 crore. These statistics were only just made public. Because of the shift in product mix, the gross margin dropped by 250 basis points year over year to reach 79%. EBITDA climbed by a more moderate rate of 13% YoY to a total of Rs. 140 crores, while PAT declined by 1% YoY to a total of Rs. 100 crore as a result of higher depreciation and interest expenses.

What has Driven the Growth of Eris Lifesciences, the pharma major? 2023 | The Lifesciences Magazine

In addition, the sales and EBITDA for the 9MFY23 period both increased by 23 and 4 percent respectively, reaching 1300 and 400 crore respectively. Despite this, PAT was down 10% year over year, coming in at Rs 300 crore.

Recently, Eris Lifesciences paid Rs 340 crore to Glenmark in order to buy nine brands that are part of Glenmark’s derma portfolio. The leading products in this portfolio have a leadership position in the pharmaceutical industry. Much different Growth of Eris Lifesciences catalysts is being cited by pharmaceutical analysts as reasons to maintain their buy recommendations for the firm.

“Eris has built multiple levers for the Growth of Eris Lifesciences in the branded generics space by broadening its dermatology portfolio through acquisitions, adding Insulin and its analogs in the anti-diabetes segment, maintaining an uptick in DPP4/SGLT2 sales, leveraging patient care platform and specialist engagement, and adding medical representatives to increase reach.

Research analysts Tushar Manudhane and Sumit Gupta from Motilal Oswal stated in a report that they would maintain their BUY recommendation on the company due to these considerations as well as favorable values.

According to the firm’s annual report for Growth of Eris Lifesciences, the period of patent expirations and exciting new product releases in oral anti-diabetes starts in 2023. The company also anticipates gaining important market positions in the new product launches and has said that this is the case in the annual report.

By entering into an equity collaboration with MJ Biopharm in January 2022, Eris Lifesciences was able to join the Rs 3,500 crore market for insulin (which is used in the therapy of diabetes) and analogs (a medicine having a similar physical structure as another substance).

In February 2022, the business also introduced Xsulin, which is its own brand of human insulin. Additionally, in May of 2022, Eris entered the Rs 11,000 crore Dermatology market by acquiring a 100 percent ownership position in Oaknet Healthcare. This move allowed Eris to join the market.

What has Driven the Growth of Eris Lifesciences, the pharma major? 2023 | The Lifesciences Magazine

Oaknet has nearly 100% coverage of over 11,000 dermatologists all throughout India, and it has a penetration rate of 60%. Oaknet gives us access to a substantial development platform not just in the field of dermatology but also in the field of cosmetology because of its 43% specialized component and its strong platform in medical dermatology.

According Amit Bakshi, Chairman, and Managing Director of the firm, quoted in the annual report as saying, “In line with our Strides and Zomelis acquisitions, we are convinced that the Oaknet deal will produce long-term value for our shareholders.”

Analysts believe that Oaknet has exceeded management’s expectations by one year and is on course to reach an EBITDA of fifty crore rupees in the current fiscal year (FY23), which would mark a continuation of the company’s recent upward trend in terms of revenue growth.

According to research by Motilal Oswal Growth of Eris Lifesciences, “given its established position in the cardio-metabolic segment and pipeline of patent expiries accessible over the short to medium term,” Motilal Oswal anticipates that ERIS will outperform the industry in this sector over the next two to three years.

Another study from Prabhudas Lilladher indicates that the Growth of Eris Lifesciences in the Cardio-Metabolic market has stayed steady at 9.9%, while growth in the core Cardio-Metabolic division of the firm has increased by 15.1% year over year.

Emerging specialist treatments such as derma, central nervous system (CNS), and women’s health contributed 21% of the company’s revenue during the quarter and jointly rose by 50.7%, while the vitamins/mineral/nutrients (VMN) sector expanded at a rate of 19.2%. Oaknet was responsible for bringing in 597 million, while insulin was responsible for 6.2 crores of the total income.

During the conference call that followed the release of the data, the management team expressed continued optimism, citing clear visibility on the development of the cardiometabolic market sector for its three developing treatments. “Brands such as Zomelis and Gluxit are in the top position and seeing tremendous growth.

According to experts Param Desai and Akshaya Shinde from Prabhudas Lilladher, ERIS also planned for further releases in dermatology, cosmetology, and women’s health moving forward. The introduction of human insulin performed well.

Despite the fact that Eris Lifesciences reported a lackluster performance for the quarter as a result of greater promotional costs from new product launches, analysts continue to have optimism about the development of the firm.

“However, we do not change our projections, and we continue to expect that the advantages of operational leverage will become apparent when revenue goes up as a result of these new launches.” According to Desai and Shinde, “Acquisition of Oaknet and Glenmark’s derma portfolio would be the reason for Growth of Eris Lifesciences’ entrance into the derma industry, which is presently running at below optimum profitability.”

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