Biocon divests enzymes unit to Novozymes for $115 mn

INDIA INC ON BUYING SPREE

Biocon has signed a definitive agreement to divest its enzymes business to Novozymes for $115 million.

This will enable Biocon to strategically focus on its core bio- pharmaceuticals business.

This transaction, subject to shareholder and regulatory approvals, is expected to be completed by the end of September this year.

"Over the past decade, we have clearly recognised the high-growth trajectory of our bio-pharma business verticals and have progressively invested to build proprietary know-how and global scale. We believe that this is the right time to divest our enzymes business and focus on unleashing the full potential of our bio-pharma businesses," said Kiran Mazumdar-Shaw, CMD, Biocon.

The enzymes business includes industrial enzymes, food additives and process aids.

Upon the completion of the divestment, Biocon would concentrate its activities on its bio-pharma business verticals that include Active Pharmaceutical Ingredients (APIs), biologicals and proprietary molecules, said the company.

Steen Riisgaard, CEO of Novozymes, said, "The acquisition of Biocon's enzymes business provides an important step for Novozymes in strengthening our position in the Indian market. The activities of Biocon have an excellent strategic fit to our existing enzymes business."

Biocon's enzymes business will be integrated into Novozymes South Asia, a fully owned affiliate of Novozymes A. Production and formulation will continue at the Biocon site under lease and service agreements with Novozymes.

In the quarter ended June 30, 2007, Biocon's revenue from the enzymes business dropped by 3 per cent compared with that in the corresponding quarter last year.