According to the terms of the proposed agreement, Goldman Sachs will be issued Optionally Convertible Debentures at a post money equity valuation of $3.94 billion. The transaction is subject to customary approvals and conditions.
“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. This transaction is a part of the overall strategic plan of value creation for our shareholders through Biocon Biologics,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.
Earlier this year, private equity players True North and Tata Capital had picked up minority stakes in the IPO-bound company for $75 million and $30 million, respectively.
“We believe Goldman Sachs’ capital infusion in Biocon Biologics demonstrates the confidence that large global institutions have in our capability to become a global leader in Biosimilars. 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,” said Christiane Hamacher, CEO, Biocon Biologics. “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,” she added.
With the demand for biosimilars set to grow as patents of originator biologics expire and patients demand lower priced drugs, Biocon Biologics is positioned well to expand access. Recently, its Insulin Glargine was commercialised in the US, which opens up a $2.2 billion opportunity for the R&D rich company. The company is currently working on a pipeline of two more products in the insulin portfolio namely Aspart and Lispro, both rapid acting insulin analogs.
Overall it has a platform of 28 biosimilar molecules across diabetes, oncology, immunology, dermatology, ophthalmology, neurology, rheumatology and inflammatory diseases.
“Biocon Biologics, with a proven R&D track-record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry,” said Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs.