Biopharmaceuticals company Biocon Ltd’s biosimilars unit is getting a big funding cheque from Goldman Sachs, after roping in private equity firms True North and Tata Capital Growth Fund earlier this year.
Biocon said in a stock market disclosure that Goldman Sachs will make a capital infusion of Rs 1,125 crore ($150 million) in Biocon Biologics Ltd.
Goldman Sachs will be issued optionally convertible debentures at a post-money equity valuation of $3.94 billion (about Rs 29,500 crore) as per the transaction, Biocon said.
Kiran Mazumdar-Shaw, executive chairperson at Biocon, said the transaction is a part of the overall strategic plan of value creation for its shareholders through Biocon Biologics.
Som Krishna, a managing director in the merchant banking division at Goldman Sachs, said that Biocon Biologics is well-positioned to grow and be a major global player in the biosimilar segment that is seeing a rapid pace of growth.
The transaction is subject to approvals.
The deal comes just months after Tata Capital Growth Fund, a private equity fund managed by Tata Capital Ltd, agreed to invest Rs 225 crore in Biocon Biologics in July.
In January, Biocon said True North would invest Rs 536.25 crore in Biocon Biologics at Rs 21,450 crore ($3 billion) on a pre-money equity basis.
Biocon, which was listed on the stock exchanges in 2004, has been incubating businesses within its fold. It divested its enzymes business in 2007 and subsequently listed its research services business Syngene in 2015.
In its annual report 2019, Biocon said it is consolidating the development, manufacturing and commercialisation operations of its biosimilars business under Biocon Biologics with its own dedicated management. It appointed Christiane Hamacher as CEO of Biocon Biologics in 2019.
Biocon Biologics has a product pipeline of 28 molecules including 11 with Mylan, a few with Sandoz and rest on its own.
In September last year, Biocon acquired a Chennai-based R&D facility from Pfizer Healthcare India Ltd through Biocon Biologics.
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