Bengaluru-based biopharmaceuticals company Biocon Ltd led by Kiran Mazumdar Shaw announced on Friday that Tata Capital Growth Fund will be picking up a 0.85% in its biosimilars subsidiary Biocon Biologics for $30 million (Rs 225 crore). This deal, Biocon said, brings Biocon Biologics equity valuation to $3.5 billion, and enterprise valuation to $4 billion.
The transaction is subject to standard condition precedents and approvals. Post the completion of this transaction, Biocon will hold 95.25% stake in Biocon Biologics, the company said.
Biocon Biologics CEO Christiane Hamacher said that is an “endorsement of the value we have created through our demonstrated success and credibility as a global biosimilars player, with two products commercialized in the U.S. and the launch of the third biosimilar on the anvil”.
“Through prudent investments in R&D and high-quality manufacturing infrastructure we are confident of achieving our aspiration of serving 5 million patients through our biosimilars portfolio and achieving a target revenue of USD 1 billion in FY22,” she added.
“The fund is delighted to partner with Biocon Biologics, a pre-eminent player in Biopharmaceuticals on a global scale, as part of our focus on export-oriented manufacturing in world beating companies,” said Akhil Awasthi, Managing Partner, Tata Growth PE.
The filing said that the equity infusion by Tata Capital will enable Biocon Biologics' future growth through prudent capital allocation, while the Biocon arm continues its investments in R&D and manufacturing to meet the demands of patients.
In Q1 of FY21, Biocon Biologics reported 19% growth to Rs 692 crore. This, the company said, was driven by “robust performance across Most of the World (MoW) markets and steady sales of our key biosimilars in U.S. and Europe, aided by a spillover of revenues from the previous quarter”.
We remain committed to impact 5 million patient lives and attain a revenue milestone of USD 1 billion in FY22,” the CEO said.