The deal for 0.85 percent stake values Biocon Biologics at an equity valuation of Rs 26,250 crore, or $3.5 billion.
Biocon on July 31 said its board has approved Tata Capital investment of Rs 225 crore for 0.85 percent stake in subsidiary Biocon Biologics.
The firm said this deal values Biocon Biologics at USD 3.5 billion.
Post the completion of this transaction, Biocon will hold 95.25 per cent stake in Biocon Biologics, the biotechnology major added.
“As per the terms of the proposed agreement, Tata Capital will invest Rs 225 crore for a 0.85 percent minority stake in the biosimilar business, valuing Biocon Biologics at an equity valuation of Rs 26,250 Crore, or $3.5 billion, and an enterprise valuation of Rs 30,400 Crore, or $4 billion,” Biocon said in a statement.
The transaction is subject to standard condition precedents and approvals.
“We are pleased with Tata Capital’s investment in Biocon Biologics, which is an endorsement of the value we have created through our demonstrated success and credibility as a global biosimilars player, with two products
commercialized in the U.S. and the launch of the third biosimilar on the anvil,” said Christiane Hamacher, CEO, Biocon Biologics, said:
Biocon Biologics is aiming to serve 5 million patients through our biosimilars portfolio and achieving a target revenue of USD 1 billion in FY22.
Biocon said 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.
Biocon’s biologics subsidiary develops and markets biosimilars globally. Biosimilars are generic versions of biologic drugs.
Biocon said it is planning to raise $200 million for its biologics subsidiary before it lists the company on capital markets in about two years.In January, Biocon raised $75 million from PE firm True North to pick up 2.44 per cent stake, valuing the biologics business at $3 billion.