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Biocon Biologics to raise $150 million from Goldman Sachs at $3.94 billion valuation

As per the terms of the proposed agreement, Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of $ 3.94 billion

Chitranjan Kumar | November 7, 2020 | Updated 18:17 IST
Biocon Biologics to raise $150 million from Goldman Sachs at $3.94 billion valuation
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon

Biocon Biologics, a subsidiary of Biocon, will receive capital injection of $150 million (Rs 1,125 crore) from US-based investment bank and financial services company Goldman Sachs against optionally convertible debentures. In an exchange filing, biopharma major Biocon said that the board of its subsidiary Biocon Biologics has approved $150 million capital injection from Goldman Sachs at equity valuation of $3.94 billion. The transaction is subject to customary approvals and conditions.

"As per the terms of the proposed agreement, Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of $3.94 billion," Biocon said in a regulatory filing on Saturday.

The development is being seen as a part of the company's strategy to expand access in US market.

Also Read: Biocon among top 5 biotech employers; overtakes Moderna, Novo Nordisk

"We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflection 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," said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

Christiane Hamacher, CEO, Biocon Biologics, said that the capital infusion by Goldman Sachs demonstrates the confidence that large global institutions have in the company's capability to become a global leader in Biosimilars. The investment will enable us to make prudent investments in R&D, high-quality manufacturing, as well as, establish a global commercial footprint, she said.

Also read: Intra-nasal coronavirus vaccine will be much easier to use and deliver, says Kiran Mazumdar Shaw

"With three of our products commercialised in the US market, we continue to strive towards expanding access for our patients and unlocking value for our shareholders," Hamacher said.

The Biocon Biologics CEO further stated that company is confident of achieving its aspiration of serving 5 million patients through its biosimilars portfolio and attaining a revenue target of $1 billion by FY22, thereby creating value for shareholders who have supported it in this journey.

Also read: Kiran Mazumdar-Shaw says COVID-19 testing in India can increase ten-fold

Biocon Biologics Limited, a subsidiary of Biocon, is engaged in developing high-quality, affordable biosimilars that expand patient access to a cutting-edge class of therapies across the world. With the demand for biosimilars set to grow as patents of originator biologics expire and patients demand lower priced drugs, Biocon Biologics is well positioned to expand access, the company claimed.

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