Diabetes major Eris Lifesciences Announces Entry into India’s Insulin Market

Diabetes major Eris Lifesciences Announces Entry into India’s Insulin Market

Eris Lifesciences (BSE: 540596; NSE: ERIS) today announced its entry into India’s INR 35 – 40 billion Insulin and GLP1 agonists market through Eris MJ Biopharm Ltd., a special purpose Joint Venture between Eris and Mumbai based MJ Biopharm Pvt Ltd.

Eris, one of India’s leading players in the Oral Diabetes Care segment, will now extend its product offering to insulins and GLP1 agonists. These categories comprise 61% of the anti-diabetes market in the USA, whereas their penetration is just 21% in India. This low penetration is largely on account of the limited number of suppliers in the Indian market. We expect significant growth in these segments, considering that diabetes is a progressive disease and Insulin/ GLP 1 therapy is the proven gold standard in diabetes management in the developed markets.

The 70:30 Joint Venture (with Eris holding a 70% stake) will primarily engage in marketing and distribution of Human and Analogue Insulin including Aspart, Glargine and Lispro and GLP-1 agonists (e.g., Liraglutide) and potentially other biopharma products in India. MJ will be responsible for the development, manufacturing and supply of these products to the JV.

Mumbai based MJ Biopharm (or “MJ”) has demonstrated capabilities in the development and commercialisation of recombinant biosimilar formulations. MJ employs a biopharma R&D team of 35 personnel (including 3 PhDs) and operates two WHO-GMP/ PICS compliant manufacturing facilities in India for biologics bulk and formulations based on the microbial fermentation platform.

Amit Bakshi, Chairman & Managing Director of Eris Lifesciences, said “Diabetes is a progressive disease and India’s patient pool is set to double in the next 20+ years. We are ranked #5 in the oral diabetes (OAD) segment and this places a huge responsibility on us as a serious stakeholder in managing the diabetes burden of our country. With the formation of this JV with MJ, we are taking our commitment a step further. Over the next 10-15 years, growth in Diabetes care will be driven by DPP4-SGLT2 combinations, Insulin Analogues and GLP1 agonists, given the superior clinical evidence on their ability to provide better glycemic control, cardio-renal protection, and weight management. Given our strong market position in OAD and blockbuster brands like Zomelis and Gluxit, we are well-positioned to ride the growth wave in DPP4-SGLT2 combinations. With the formation of this JV, we will add Human Insulin, Analogues and GLP-1 agonists to our portfolio, which along with our Circa range of Glucometers, CGM Devices and HbA1C monitors, makes us a full-service player in Diabetes Care.”

Amol Shah, Managing Director of MJ Biopharm, said “With proven capabilities in biopharmaceutical development and manufacturing as well as world-class facilities, MJ Biopharm has built strong credibility in the insulin space, with 14+ mn vials p.a. and 4+ mn cartridges p.a. of recombinant human insulin manufactured and supplied to 25+ countries since the year 2015. I am excited about this collaboration with Eris and we look forward to expand the breadth and depth of the Insulin market in India.”

About Eris Lifesciences Ltd (BSE: 540596, NSE: ERIS):
Eris Lifesciences Ltd. is the only publicly listed Indian pharma company with a pure-play domestic branded formulations business model. Established in 2007, Eris is by far the youngest company in the IPM Top-25. Since inception, we have been focused on chronic and sub chronic lifestyle related therapies and on high-end super-specialist doctors and consulting physicians.

Eris is a fully integrated business with a WHO GMP manufacturing facility in Guwahati that caters to ≈80% of our revenue and a pan-India distribution network of over 2,100 stockists 5,00,000+ chemists. Over 4,000 employees work out of our corporate offices in Ahmedabad and Mumbai, the field and our Guwahati facility.

Eris’ revenues have grown 6x in the last 10 years (since FY11) and 2x in the last 5 years (since FY16). Net profits have grown ~ 17x in the last 10 years and 2.6x in the last 5 years. The company has maintained an ROIC in excess of ~ 30% over the last 12 years. Fourteen years into the business, the company retains its fundamental strengths in terms of a chronic and sub-chronic focused brand portfolio (92% of sales) with low (7%) NLEM exposure, high mind-share and prescription ranks with super-specialists (#3 among Diabetologists and #4 among Cardiologists), strong cash generation (free cash of 81% of FY21 EBIDTA) and a debt-free balance sheet, as of 31 Mar 21.

About MJ Biopharm Pvt. Ltd:
MJ is a privately- held biopharmaceutical company with proven capabilities in the development of advanced biological formulations from preclinical through to Phase III and regulatory approval. It has an R&D team of 35+ members (including 3 PhDs) with a track record of having developed biosimilar formulations of synthetic peptides and r-DNA peptides.

MJ operates 2 WHO-GMP/ PICS compliant integrated manufacturing facilities in India for biologics bulk and formulations based on the microbial fermentation platform. These facilities are capable of manufacturing biopharma bulk and injectable formulations in ampoules, vials, cartridges and pre-filled syringes.
One of MJ’s core products is a human recombinant DNA insulin injection in various dosage forms like injectable cartridges, vials and disposable pen devices. MJ has a strong product pipeline consisting of insulin analogues (Glargine, Lispro and Aspart) and GLP1 agonists (Liraglutide)

News Links

Copyright © 2022 Eris Lifesciences Limited. All Rights Reserved.