Biocon Biologics to get Rs 225 cr from Tata Capital Growth Fund for 0.85 per cent equity stake

Biocon announced that the Board of its subsidiary Biocon Biologics India has approved a primary equity investment by Tata Capital Growth Fund. As per the terms of the proposed agreement, Tata Capital will invest Rs 225 crores for a 0.85 per cent minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs 26,250 crores or $3.5 billion, and an enterprise valuation of Rs 30,400 crores or $4.0 billion.

The transaction is subject to standard condition precedents and approvals. Post the completion of this transaction, Biocon will hold 95.25 per cent stake in Biocon Biologics.

Dr Christiane Hamacher, CEO, Biocon Biologics, said, “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 $1 billion in FY22.”

Akhil Awasthi, Managing Partner, Tata Growth PE, said, “The investment brings together 150+ years of brand equity of Tata’s and a very strong R&D based entrepreneur in Dr Kiran Mazumdar-Shaw with a golden track record of conceptualising, investing and creating billion-dollar businesses by a meticulous combination of R&D strengths and an exceptional management team”.

“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,” informed a company statement.

Biocon Biologics has one of the largest biosimilars portfolios. Earlier this month, it had announced a global collaboration with Voluntis to develop and distribute innovative digital therapeutics supporting people with diabetes on biologics therapy.