Biocon Ltd., a bio-pharmaceutical company, announced that the Board of its subsidiary Biocon Biologics Ltd (Biocon Biologics) has approved a Rs.1,125 Crore (approx. USD 150 million) fund raise from Goldman Sachs. As per the proposed terms, Goldman Sachs will be issued Optionally Convertible Debentures at a post money equity valuation of USD 3.94 Billion (Rs. 29,550 Crore).
Biocon Ltd. is a publicly listed bio-pharmaceutical company focused on therapies for diabetes, cancer and autoimmune and manufactures APIs sold in over 120 countries. Biocon biologics is a subsidiary of Biocon Ltd. and looks after biosimilars. Biocon Biologics has 28 biosimilar molecules, three of which have been commercialized in developed markets of US, EU and others. Goldman Sachs group is a global IB firm.
While the present valuation of Biocon Biologics is close to $4 Billion, earlier in January 2020, the firm raised funds from True North at Valuation of around $3 Billion (diluting 2.44% stake).
With a portfolio of biosimilars and three biosimilar products commercialized in the U.S. market, Biocon Biologics continues to expand access for its patients. This fund raise will enable Biocon to make investments in R&D, high-quality manufacturing and establishment of global commercial footprint.
Goldman Sachs said that with demand for biosimilars set to grow as patents of originator biologics expire and patients demand lower priced drugs, Biocon Biologics is well positioned to expand access.
Acknowledgements: RBI Bulletin (www.bulletin.rbi.org.in), SEBI Bulletin (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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