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Goldman Sachs to invest $150 million in Biocon's IPO-bound subsidiary Biocon Biologics

As per the terms of the proposed agreement, Goldman Sachs will be issued Optionally Convertible Debentures at a post money equity valuation of $3.94 billion. The transaction is subject to customary approvals and conditions

November 07, 2020 / 05:07 PM IST
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

 
 
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Biocon Ltd on November 7 announced that the Board of its subsidiary Biocon Biologics Ltd (Biocon Biologics) has approved a Rs 1, 125 crore ($150 million) capital injection from Goldman Sachs.

Moneycontrol was the first to report the deal on October 1 and had indicated that the Biocon management was keen to get on board a blue chip global investor like Goldman Sachs for its IPO-bound subsidiary.

As per the terms of the proposed agreement, Goldman Sachs will be issued Optionally Convertible Debentures at a post money equity valuation of $3.94 billion. The transaction is subject to customary approvals and conditions.

“We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflection point of Biocon Biologics’ journey in its quest for global leadership in providing affordable access through Biosimilar drugs. This transaction is a part of the overall strategic plan of value creation for our shareholders through Biocon Biologics,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

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“We believe Goldman Sachs’ capital infusion in Biocon Biologics demonstrates the confidence that large global institutions have in our capability to become a global leader in Biosimilars. With three of our products commercialized in the US market, we continue to strive towards expanding access for our patients and unlocking value for our shareholders. This capital injection by Goldman Sachs will enable us to make prudent investments in R&D, high-quality manufacturing, as well as, establish a global commercial footprint. We are confident of achieving our aspiration of serving 5 million patients through our biosimilars portfolio and attaining a revenue target of $1 billion by FY22, thereby creating value for our shareholders who have supported us in this journey,” said Dr. Christiane Hamacher, CEO, Biocon Biologics.

“The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for healthcare systems and improved patient access to treatments. Biocon Biologics, with a proven R&D track record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry,” said Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs.

A Closer look at Biocon Biologics

Biocon Biologics is engaged in developing high-quality, affordable biosimilars that expand patient access to a cutting-edge class of therapies across the world. The company has one of the largest biosimilars portfolios globally, spanning recombinant human Insulin (rh-Insulin), insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas.

Biocon Biologics has the full spectrum of insulins (regular, basal, and rapid) in its pipeline and the global scale necessary to make a difference to diabetes patients worldwide.

With the 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.

Recently, Biocon Biologics' Insulin Glargine was commercialized in the US, making it the only company from India to enable affordable access to three products: a biosimilar monoclonal antibody (Trastuzumab), a therapeutic protein (Pegfilgrastim) and an Insulin analog (Glargine) for patients in the U.S, through its partner Mylan.
Ashwin Mohan

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