True North to invest Rs 536 crore in Biocon Biologics for 2.44 stake

Biocon has announced that the board of its subsidiary Biocon Biologics India (Biocon Biologics) has approved a primary equity investment by True North. As per the terms of the proposed agreement, True North will invest Rs 536.25 crore that will eventually translate into a 2.44% minority stake in the biosimilars business after all restructuring, including the filed merger of Biocon Research with Biocon Biologics, valuing Biocon Biologics at Rs 21,450 crore or on a pre-money equity basis.

The transaction is subject to standard condition precedents including regulatory approvals. After completion of this transaction, Biocon will hold a 96.07% stake in Biocon Biologics. True North has been a investor in both Biocon and Syngene prior to listing.

Kiran Mazumdar-Shaw, chairperson and MD of Biocon, said, “We are extremely pleased to welcome back True North as a shareholder in our group. 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 the EU, the US, 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…”

Satish Chander, partner, True North, said: “Healthcare and life sciences has been a focus sector for True North with investment of $600 million across 10 companies till date. True North has had a long and successful association with Kiran Mazumdar-Shaw and the entire Biocon team and sees them as pioneers and leaders in specialised niches. We truly admire their ability in incubating and scaling up new focused businesses and we have had the opportunity to invest earlier in two such businesses – Biocon and Syngene… We are very excited at this opportunity to partner with Biocon Biologics which is poised for explosive growth.”

Biocon Biologics has one of the largest biosimilars portfolios, a global footprint and state-of-the-art manufacturing facilities. It has been consistently investing in developing an R&D ecosystem.

On the investment and R&D, Chinappa MB, CFO of Biocon Biologics, said: “The equity infusion by True North will enable expansion of our R&D and manufacturing capabilities to meet the growing demands of patients worldwide. It will fuel the future growth of the business as we pursue our mission to establish Biocon Biologics as a leading global player in biosimilars. The pre-money equity valuation reflects the confidence in Biocon Biologics’ current business and future prospects.”

Christiane Hamacher, CEO of Biocon Biologics, said, “The investment by True North in Biocon Biologics is an exciting development, which validates our science, scale, scope and strategy. It also reflects a high level of conviction in Biocon Biologics’ status as a global frontrunner in biosimilars that is leveraging its large-scale manufacturing capabilities to shift the access paradigm for these life-saving therapies…”