Biocon rose 1.81% to Rs 422.25 after the board of Biocon Biologics, the company's subsidiary, approved a Rs 1,125 crore (approximately $150 million) capital injection from Goldman Sachs.
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. The transaction is subject to customary approvals and conditions. The announcement was made on Saturday (7 November 2020).
Kiran Mazumdar-Shaw, executive chairperson, Biocon, said, "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."
Dr. Christiane Hamacher, CEO, Biocon Biologics, said: "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 U.S. 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."
Biocon Biologics is engaged in developing high-quality, affordable biosimilars that expand patient access to a cutting-edge class of therapies across the world. The company has one of the largest biosimilars portfolios globally, spanning recombinant human insulin, insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas. Biocon Biologics has the full spectrum of insulins (regular, basal and rapid) in its pipeline and the global scale necessary to make a difference to diabetes patients worldwide.
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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.
Recently, Biocon Biologics' insulin glargine was commercialized in the U.S., making it the only company from India to enable affordable access to three products - a biosimilar monoclonal antibody (Trastuzumab), a therapeutic protein (Pegfilgrastim) and an insulin analog (Glargine) for patients in the U.S, through its partner Mylan.
Biocon is an innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune.
The company's consolidated net profit fell 23% to Rs 195.4 crore on 11.33% rise in net sales to Rs 1744.8 crore in Q2 September 2020 over Q2 September 2019.
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