Biocon announced that the Board of its subsidiary Biocon Biologics has approved a primary equity investment by Abu Dhabi based ADQ. As per the terms of the proposed agreement, ADQ will invest Rs 555 crores ($75 million) for a 1.80 per cent minority stake in the biosimilar business, valuing Biocon Biologics at a post money valuation of ~$4.17 billion.
The transaction is subject to customary condition precedents and approvals. Post the completion of this transaction, Biocon will hold 89.89 per cent stake in Biocon Biologics on a fully diluted basis.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said, “This investment is an endorsement of the value that Biocon Biologics business has built as a fully integrated pure-play biosimilars company and will enable us to expand our capabilities further. The current investment has put post money valuation of Biocon Biologics at ~$4.17 billion.”
H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, said, “Biocon Biologic’s proven R&D track record and partnerships worldwide provide us with an opportunity to benefit from the biosimilar sector that is set to grow as patents of originator biologics expire and patients demand lower priced drugs globally.”
Biocon Biologics had raised over $255 million from global investors from Jan to Nov 2020. The company has raised $75 million through a primary equity infusion by True North Fund for a 2.44 per cent stake; Tata Capital Growth Fund picked up a 0.85 per cent stake for $30 million. Goldman Sachs made a capital injection of $150 million in exchange for Optionally Convertible Debentures of Biocon Biologics.