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True North to pick 2.44% stake for Rs 536.25 crore in Biocon Biologics

Deal values Biocon Biologics at $ 3 billion

Vinay Umarji  |  Ahmedabad 

Ban on upfront commission, uncertainty in equity markets hit new offers

Private equity (PE) player is set to pick up a minority 2.44 per cent stake for Rs 536.25 crore in Biocon Biologics India Ltd., subsidiary of the Bengaluru-based global biopharmaceuticals company Biocon Ltd.

Biocon Biologics' Board of Directors on Monday approved the primary equity investment by True North, with the deal valuing the company at Rs 21450 crore or $3 billion on a pre-money equity basis. According to an official communique by the company, True North's will invest in the biosimilars business post all restructuring, including the filed merger of Biocon Research Ltd with Biocon Biologics.

The transaction is subject to standard condition precedents including regulatory approvals. Post the completion of this transaction, Biocon will hold 96.07 per cent stake in Biocon Biologics.

The investment comes at a time when Biocon Biologics gains commercial success with its first wave of biosimilar products and invest in the long term through broadening of pipeline, manufacturing capacity expansion and increasing in commercial footprint, said Kiran Mazumdar-Shaw, Chairperson & Managing Director, Biocon Ltd.

"Through prudent investments in R&D, high quality manufacturing infrastructure as well as commercial and market access infrastructure, we are confident of achieving our aspirational goal of serving 5 million patients through our biosimilars portfolio and reaching our aspirational revenue target of $ 1 billion in FY'22," said Dr. Christiane Hamacher, CEO, Biocon Biologics.

Meanwhile, newly appointed chief financial officer, Chinappa M B said that the equity infusion by will enable expansion of Biocon Biologics' R&D and manufacturing capabilities to meet the growing demands of patients worldwide.

First Published: Mon, January 06 2020. 20:43 IST