Biopharmaceuticals major Biocon said on Monday the board of its subsidiary Biocon Biologics has approved a primary equity investment by True North which will invest Rs 536.25 crore to pick 2.44 per cent minority stake in the biosimilars business.
Post all restructuring, including the filed merger of Biocon Research with Biocon Biologics, this values Biocon Biologics at Rs 21,450 crore on a pre-money equity basis. Post the completion of transaction, Biocon will hold 96.07 per cent stake in Biocon Biologics.
"This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercialised three of its molecules in developed markets like European Union, United States, Japan and Australia," said Biocon's Chairperson and Managing Director Kiran Mazumdar Shaw.
"This is at an important inflection point as we gain commercial success with our first wave of biosimilar products and invest in the long term through broadening our pipeline, expanding our manufacturing capacity and increasing our commercial footprint," she said in a statement.
Biocon Biologics CEO Christiane Hamacher said the investment by True North validates Biocon Biologics' science, scale, scope and strategy.
"It also reflects a high level of conviction in Biocon Biologics' status as a global frontrunner in biosimilars that is leveraging its large scale manufacturing capabilities to shift the access paradigm for these life-saving therapies," she said.
Biocon Biologics CFO Chinappa M B said the equity infusion by True North will enable expansion of the R&D and manufacturing capabilities to meet the growing demands of patients worldwide.
With the scientific capabilities, scale of manufacturing, large product pipeline, strong talent pool and expertise in developing and commercialising biologics, the company aims to serve five million patients through its biosimilars and reach one billion dollar revenue mark in FY22.
( With inputs from ANI )