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Biocon Ltd, India based pharmaceutical company, has announced that “The board of its wholly-owned subsidiary Biocon Biologics Ltd (Biocon Biologics) has approved a Rs 1,125 crore ($150 Million) capital injection from Goldman Sachs.
The company in its statement said, “As per the proposed agreement, Goldman Sachs will be issued an Optionally Convertible Debentures at a post-money equity valuation of $3.94 billion. The transaction is subject to customary approvals and conditions.”
Speaking on the development, Kiran Mazumdar-Shaw, Executive Chairperson of Biocon said, “We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflections 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.”
“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,” said Dr. Christiane Hamacher, CEO, 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,” said Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs.