Eris Lifesciences - Enhancing Broad Based Offerings In Derma: Prabhudas Lilladher
ERIS has announced to acquire nine derma brands of Dr. Reddy’s Labs for cash consideration of Rs 2.75 billion.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Eris Lifesciences Ltd. acquisition of nine derma brands from Dr. Reddy laboratories Ltd. along with recent acquisition of brands from Glenmark Pharmaceuticals Ltd. will provide them comprehensive offerings in dermatology.
In the near term, this acquisition will increase Eris net debt and we see this acquisition as earnings per share dilutive.
We downgrade our FY24E and FY25E EPS estimates by 9% and 3% each, given higher depreciation and interest cost.
The company has multiple growth levers such as broad based offerings in derma segment, opportunities in cardio metabolic market with patent expirations and benefits of operating leverage, as revenue scales up from these acquisitions which is currently operating at sub optimal profitability.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.