Biocon Ltd on Saturday announced that the board of its IPO-based subsidiary Biocon Biologics Ltd has approved an investment of Rs 1,125 crores ($150 million) from Goldman Sachs. As per the terms of the agreement, Goldman Sachs will be given Optionally Convertible Debentures at a post-money equity valuation of $3.94 billion and the transaction is subject to customary approvals and limitations.
Biocon management had expressed its keenness to get on board a billionaire global investor like Goldman Sachs for its IPO-bound subsidiary.
“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 commercialized 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. We are confident of achieving our aspiration of serving 5 million patients through our biosimilars portfolio and attaining a revenue target of $1 billion by FY22, thereby creating value for our shareholders who have supported us in this journey,” emphasised Dr.Christiane Hamacher, CEO of Biocon Biologics.
“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, 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,” mentioned Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs.
Biocon Biologics is committed to developing superior-quality and affordable biosimilars that dilate a patient’s access to a cutting-edge class of therapies globally. With the rising demand for biosimilars and lower drug prices, Biocon Biologics is all set to expand its access.