Biocon Ltd., an innovation-led global biopharmaceuticals company, today 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 Rs225cr for a 0.85% minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs26,250cr or ~USD 3.5 billion, and an enterprise valuation of Rs30,400cr or ~USD 4.0 billion.
Biocon Ltd is currently trading at Rs410.15, up by Rs6.75 or 1.67% from its previous closing of Rs403.40 on the BSE.
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 in the filing.
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.
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.”