Bengaluru, Jan 6 | Pharmaceuticals major Biocon Ltd on Monday said that its subsidiary Biocon Biologics India has approved the acquisition of 2.44 per cent stake in it by private equity firm True North with an investment of Rs 536.25 crore.
In a regulatory filing, Biocon said that the transaction is subject to standard condition precedents including regulatory approvals and post the completion of this transaction, Biocon will hold 96.07 per cent stake in Biocon Biologics. The deal values the unlisted subsidiary at around $3 billion.
“As per the terms of the proposed agreement, True North will invest Rs 536.25 Crore that will eventually translate to a 2.44 per cent minority stake in the biosimilars business post all restructuring, including the filed merger of Biocon Research Ltd with Biocon Biologics, valuing Biocon Biologics at Rs 21,450 crore or $3 billion on a pre-money equity basis,” it said.
Commenting on the development, Kiran Mazumdar Shaw, Chairperson and Managing Director of Biocon said: “This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercializsd three of its molecules in developed markets like EU, the US, Japan and Australia. This is at an important inflection point as we gain commercial success with our first wave of Biosimilar products and invest in the long term through broadening our pipeline, expanding our manufacturing capacity and increasing our commercial footprint.”
Biocon Biologics is a fully-integrated ‘pure play’ biosimilars organisation and is engaged in developing high-quality, affordable biosimilars aimed at expanding patient access to cutting-edge class of therapies across the world.
True North is an investment company focussed on investing in and transforming mid-sized profitable businesses.