Eris Lifesciences Q3 concall highlights –
Acquired 09 Dermatology brands from Glennmark Pharma
Had acquired Oaket Pharma ( a Derma company ) in May 22
Latest acquisition helps them consolidate their position in Derma Mkt, specially in anti fungal and anti psoriasis mkt
03 of Glenmark’s acquired brands are No1 in their respective segment. 03 others are among top 03
These 09 brands have a revenue base of 85 cr, Acquired for 340 cr, funded via borrowings @ 8pc
Post deal derma contribution for Eris will rise to 13 pc from 07 pc currently
Derma mkt rank to improve to No 6 from No 12 Oaknet’s
Q3 revenues at 60 cr, EBITDA at 27 pc up from 10 pc, pre acquisition
Oakent to clock yearly EBITDA > 50 cr, 1 yr ahead of expectations
Cardio-Metabolic share of revenues for Eris at 54 pc, grew by 15 pc
Eris’s biggest anti-diabetic brands are Zomelis and Gluxit
Derma+CNS+Women’s health – The emerging portfolio for Eris has grown by 15 pc. All three combined form 25 pc of Eris’s revenues
VMN (Vit-Minerals-Neutraceuticals) account for 17 pc of Eris’s revenues. Grew by 19 pc
Added 200 Medical Reps in FY 23
Launched various new and innovative products specially in Cardio-Metabolic space
These led to some compression in Gross Margins
Consolidated sales at 424 cr, up 27 pc
EBITDA at 132 cr, up 12 pc
PAT at 100 cr @ 24 pc net margins!!!
Consolidated EBITDA margins at 32 pc despite Oaknet integration, commissioning of new mfg plant in Gujarat and various new brand launch related investments
Margins to improve next FY onwards
All this growth despite base Qtr having an aprox sale of 10 cr of Covid drugs
Started selling ( new launch ) Insulin this yr. Aim to hit 22-24 cr sales this yr, 50 cr next yr
Currently having aprox 3000MRs. Oaknet may add a few more next yr
Next yr onwards, EBITDA growth to be better than top line growth as most investments are behind
Aim to launch Glargine by Q3 – Q4 next yr
Current consolidated yield of MRs at Rs 5lakh/month
May go for more inorganic opportunities next year as well
No of products going off patent and are likely to be launched next yr in India are quite high in the diabetes space
Disc : holding, biased
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