Biocon Ltd, an innovation-led global biopharmaceuticals company, announced that the Board of its subsidiary Biocon Biologics India Limited (Biocon Biologics) has approved a primary equity investment by Tata Capital Growth Fund.
As per the terms of the proposed agreement, Tata Capital will invest Rs 225 Crore for a 0.85% minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs 26,250 Crore, or ~USD 3.5 billion, and an enterprise valuation of Rs 30,400 Crore, or ~USD 4.0 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.
Speaking about the investment, Dr. Christiane Hamacher, CEO, Biocon Biologics, said: “We are pleased with Tata Capital’s investment in Biocon Biologics, which 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. We appreciate the conviction of our institutional investors in the ‘value creation’ story of Biocon Biologics as a fully integrated ‘pure-play’ global biosimilars company. This equity infusion is the next step in our journey of unlocking value. 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.”
Akhil Awasthi, Managing Partner, Tata Growth PE, said: “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. The investment brings together 150+ years of brand equity of Tata’s and a very strong R&D based entrepreneur in Dr Kiran Mazumdar-Shaw with a golden track record of conceptualizing, investing and creating billion-dollar businesses by a meticulous combination of R&D strengths and an exceptional management team”.
Sanjay Chaudhary, Partner at Tata Growth PE, added that “this transaction was closed with remarkable efficiency in these challenging times of Covid-19 and demonstrates the strength of the Management team, Advisors and Lawyers advising on this transaction”.
“The equity infusion by Tata Capital will enable Biocon Biologics’ future growth through prudent capital allocation, while we continue our investments in R&D and manufacturing to meet the growing demands of patients worldwide. Having reputed investors as our partners, in the journey of establishing Biocon Biologics, as a leading global player in biosimilars, is reflective of the confidence they have in the company’s current and future prospects, aimed at benefiting patients, partners and healthcare systems across the world,” the Company said in its press statement.
Biocon Biologics is engaged in developing high-quality, affordable biosimilars aimed at expanding patient access to a cutting-edge class of therapies across the world. The company has one of the largest biosimilars portfolios, a wide global footprint, state-of-the-art manufacturing facilities, world-class R&D ecosystem and high quality & compliance standards, enabling it to fulfil unmet needs of patients across the globe.
Earlier this month, the Company announced a global collaboration with Voluntis, a leader in digital therapeutics, to develop and distribute innovative digital therapeutics supporting people with diabetes on biologics therapy. This makes Biocon Biologics one of the first insulins companies to offer a US Food and Drug Administration-cleared and CE-marked, highly validated digital therapeutic product, Insulia, to Type 2 diabetes patients, across several markets in the world.
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