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DealStreetAsia

India's Biocon Biologics to receive $150m from Goldman Sachs

Fresh infusion follows Tata's pledge of $30m

Employees of parent Biocon work inside the company's research and development facility in Bangalore, India.   © Reuters

NEW DELHI -- Biocon Biologics, a subsidiary of Indian biotech giant Biocon, has secured board approval for an investment of $150 million from U.S.-based investment bank Goldman Sachs.

As part of the agreement, Goldman Sachs will be issued convertible debentures at a post-money equity valuation of $3.94 billion, the parent said in a statement.

Kiran Mazumdar-Shaw, executive chairperson at Biocon, said the transaction is part of the overall strategic plan of value creation for shareholders through Biocon Biologics.

The fresh infusion comes after Tata Capital Growth Fund -- a private equity fund managed by Tata Capital -- agreed to invest 2.25 billion rupees ($30 million) in Biocon Biologics in July.

In January, True North acquired a 2.44% stake in the company for 5.36 billion rupees.

"With three of our products commercialized in the U.S. market, we continue to strive toward expanding access for our patients and unlocking value for our shareholders," said Biocon Biologics CEO Christiane Hamacher. "This capital injection by Goldman Sachs will enable us to make prudent investments in R&D [and] high-quality manufacturing, as well as establish a global commercial footprint."

Hamacher added that the company is "confident of achieving [its] aspiration of serving 5 million patients through [its] biosimilars portfolio and attaining a revenue target of $1 billion by financial year 2022."

Biocon spun off its biosimilars division into Biocon Biologics in March 2019. Biocon Biologics has one of the largest biosimilars' portfolios globally, spanning recombinant human insulin, insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas.

According to Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs: "The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for health care systems, and improved patient access to treatments. Biocon Biologics, with a proven R&D track-record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry."

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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