Private equity major Tata Capital Growth Fund will pick up 0.85 per cent stake in the biologics arm of biopharmaceutical major Biocon for Rs 225 crore.
The primary equity investment values Biocon Biologics at an equity valuation of Rs 26,250 crore and an enterprise valuation of Rs 30,400 crore, Biocon said on Friday after its board of directors approved the plan.
“This equity infusion is the next step in our journey of unlocking value,” said Christiane Hamacher, CEO of Biocon Biologics.
“Through prudent investments in R&D and high-quality manufacturing infrastructure, we are confident of achieving our aspiration of serving five million patients through our biosimilars portfolio and achieving a target revenue of one billion dollars in FY22,” he said in a statement.
The transaction is subject to standard condition precedents and approvals. After the completion of the transaction, Biocon will hold 95.25 per cent stake in Biocon Biologics.
“The investment brings together 150-plus years of brand equity of Tatas and a very strong R&D based entrepreneur in 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,” said Akhil Awasthi, Managing Partner at Tata Growth PE.
Biocon Biologics is engaged in developing high-quality, affordable biosimilars aimed at expanding patient access to a cutting-edge class of therapies across the world.
The company has one of the largest biosimilars portfolios, a wide global footprint, modern manufacturing facilities, world-class R&D ecosystem and high quality & compliance standards, enabling it to fulfil unmet needs of patients across the globe.
As a company led by innovation and with global scale manufacturing capability to take complex biosimilars to the maximum number of people, Biocon Biologics said it is well-positioned for the future.
Reports say the company is in talks with some other private equity firms as well which are interested in acquiring a minority stake.