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DealStreetAsia

India's Biocon Biologics in funding talks with Baring PE Asia

Country's largest biopharmaceutical eyes valuation of over $100m

Biocon Biologics offers treatment for chronic and acute diseases, including diabetes, oncology, nephrology and cancer.

NEW DELHI -- Biocon Biologics, a unit of India's largest biopharmaceutical company Biocon, is in talks with Asia-focused Baring Private Equity Asia to raise funding in lieu of a minority stake, sources familiar with the matter told DealStreetAsia.

While the exact size of the deal is unknown, it could be worth around $100 million or more, the sources said.

"Negotiations are currently underway. ... It will be used for both organic and inorganic growth," said a person with knowledge of the plans.

When contacted, both Baring PE Asia and Biocon declined to comment at the time of publishing.

If talks succeed, this would be the second capital infusion in Biocon Biologics this year.

In January, the company raised 5.55 billion rupees ($75.6 million) from sovereign wealth fund ADQ -- formerly known as Abu Dhabi Developmental Holding Company -- at a valuation of $4.17 billion. At that time, the company had divested a minority stake of 1.8% to fund the amount.

Prior to that, Biocon Biologics secured over $255 million from global investors such as True North -- formerly known as India Value Fund Advisors -- Goldman Sachs and Tata Capital between January and November 2020.

Biocon, led by Indian billionaire entrepreneur Kiran Mazumdar Shaw, spun off its biologics business into Biocon Biologics in March 2019. The company offers treatment for chronic and acute diseases, including diabetes, oncology, nephrology, cancer and autoimmune disorders.

According to its website, Biocon Biologics is one of the world's leading insulin producers with a portfolio comprising basal, mixed and rapid-acting insulins used to treat diabetes.

Biocon Biologics recently made headlines when it acquired Viatris Biosimilars in February in a huge $3.3 billion cash-and-stock deal, a move that is said to have provided access to developed markets in North America and Europe.

Last year, it announced a strategic alliance with Covidshield Technologies, a subsidiary of Serum Institute Life Sciences. The transaction was cleared by India's competition watchdog in May this year. As part of the agreement, Biocon Biologics will offer about a 15% stake to Serum Institute Life Sciences to gain access to 100 million doses of vaccines -- including COVID-19 vaccines -- per annum for 15 years.

Established in 1997, Barings PE Asia has $21 billion of fee-paying assets under management, a term used to represent only those assets under management from which the company receives fees. It has so far funded over 150 companies in diverse sectors.

In January 2020, Barings PE Asia raised its seventh private equity fund at a hard cap of $6.5 billion.

For the original story from DealStreetAsia, click here.

DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.

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