American venture capital firm True North has picked up a 2.44% stake in Biocon Biologics, a subsidiary of Biocon Ltd., for ₹536.25 crore.
Biocon on Monday said the board of its subsidiary India Biocon Biologics Ltd. (Biocon Biologics) has approved a primary equity investment by True North.
As per the terms of the proposed agreement, True North would invest ₹536.25 crore that would eventually translate into a 2.44% minority stake in the biosimilars business post all restructuring, including the filed merger of Biocon Research Ltd. with Biocon Biologics, valuing Biocon Biologics at ₹21,450 crore (about $3 billion) on a pre-money equity basis, said the company.
The transaction was subject to regulatory approvals. Post the completion of this transaction, Biocon would hold 96.07% stake in Biocon Biologics.
Mazumdar-Shaw, Chairperson & Managing Director, Biocon said, “True North has been a committed investor in both Biocon and Syngene prior to listing. This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercialised three of its molecules in developed markets like EU, U.S., 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.”'
“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 FY22,” said Dr. Christiane Hamacher, CEO, Biocon Biologics.
As per Satish Chander, partner, True North, “Healthcare and life sciences has been a focus sector for True North with investment of $600 million across 10 companies till date.”
