THE WHAT? Dr Reddy’s has announced that it has sold its portfolio of nine cosmetic dermatology brands to Eris Lifesciences for Rs 275 crore, according to a report published by the Economic Times.
THE DETAILS Under the terms of the deal, the Indian drug company will be assigned the trademark and their applicable line extensions of the Hydroheal, Revilos, Avarta, Aquaderm and other brands in the portfolio. The all-cash deal is expected to close at the end of the month.
THE WHY? M V Ramana, CEO – Branded Markets (India & Emerging Markets) at Dr Reddy’s told the Economic Times, “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.”