Biocon on January 6 announced that the board of its subsidiary Biocon Biologics India has approved the acquisition of 2.44 percent stake in it by private equity firm True North for Rs 536.25 crore.
The transaction is subject to standard condition precedents, including regulatory approvals.
After the completion of this transaction, Biocon will hold 96.07 percent stake in Biocon Biologics.
Biocon said it would use the proceeds of stake sale for expansion of R&D and manufacturing capabilities.
Biocon Biologics has a product pipeline of 28 molecules, including 11 with Mylan, several with Sandoz, and is developing
The company aims to serve 5 million patients through its biosimilars and reach $1 billion revenue mark in FY22.
"This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercialized three of its molecules in developed markets like EU, US, Japan
and Australia. This is at an important inflection point as we gain commercial success with our first wave of biosimilar products and invest in the long term through broadening our pipeline, expanding our manufacturing capacity and increasing our commercial footprint," said Kiran Mazumdar-Shaw, Chairperson & Managing Director, Biocon.
True North had earlier invested in Biocon's control research arm Syngene, before both Biocon and Syngene prior to listing of the research subsidiary.
"Healthcare and Life Sciences has been a focus sector for True North with investment of $600 million across 10 companies till date, " said Satish Chander, Partner, True North.
"Biosimilars is a fast growing industry that addresses a fundamental need of bringing affordability to specialized effective biologic products. Biocon Biologics has been one of the global leaders with their early success in developing and commercializing multiple products across geographies. We are very excited at this opportunity to partner with Biocon Biologics which is poised for explosive growth," Chander said.