Biocon on Saturday said its subsidiary Biocon Biologics has approved a Rs 1,125 crore investment from Goldman Sachs. This capital injection by Goldman Sachs will enable Biocon Biologics to make prudent investments in R&D, high-quality manufacturing, as well as, establish a global commercial footprint.
The board of Biocon Biologics has approved a Rs 1,125 crore ($150 million) capital injection from Goldman Sachs, Biocon said in a statement. 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, it added.
"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," Biocon executive chairperson Kiran Mazumdar-Shaw said. This transaction is a part of the overall strategic plan of value creation for the company's shareholders through Biocon Biologics, she added.
Biocon Biologics CEO Christiane Hamacher said, "With three of our products commercialised 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."
The company is confident of achieving aspiration of serving 5 million patients through its biosimilars portfolio and attaining a revenue target of $1 billion by 2021-22, he added.
Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs said, "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 is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry, he added. It 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. Recently, its Insulin Glargine was commercialised 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 US, through its partner Mylan.
(Edited by : Jomy)