BENGALURU: Biocon Biologics, the biosimilar arm of Biocon, has got a $150 million (Rs 1,125 crore) funding from Wall Street behemoth Goldman Sachs, valuing the company at about $4 billion. Goldman will be issued optionally convertible debentures.
The funding will help the unit make investments in R&D, manufacturing as well as expand its reach in the global market. This is the biggest investment received by Biocon Biologics after Tata Capital Growth Fund put in $30 million and private equity firm True North $74 million earlier this year.
“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,” said CEO Christiane Hamacher.
The unit has a target of $1 billion revenue in the next two years by serving 5 million patients. Biocon plans to take its biologics business public in the next two to three years, to unlock value for one of its most profitable segments and the company also plans capital expenditure of $100 million each on the biologics and small molecules businesses this fiscal.
The two businesses are Biocon’s fastest growing, but the biopharmaceutical company is betting particularly big on its biologics business due to the approvals obtained from various global agencies, including the US FDA, to sell its biosimilars.
Biocon’s biosimilars, the first of which was launched in 2016 in Japan of insulin glargine, has become the driving force of the company’s topline, with more of these products finding acceptance in the mature markets of Europe and the US, as also other countries. The company currently has 28 biosimilar molecules in different stages of development. 2 biosimilars have already been launched in the US while the third is on the anvil.
“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, merchant banking division of Goldman.
Source From : Times Of India