[Funding] Biotech Biocon gets funding from Tata Capital at $30 million for 0.85% stake

Tata Capital will invest Rs 225 crore or $30 million for 0.85% stake in Biocon's biosimilar business Biocon Biologics. The deal values it at an equity valuation of Rs 26,250 crore (about $3.5 billion) and an enterprise valuation of Rs 30,400 crore ($4 billion), the Biotech said on Friday. Further, the transaction is subject to standard condition precedents and approvals. Thus, post the completion of this transaction, the biotech giant will hold a 95.25% stake in Biocon Biologics.

Talking about the deal,  Dr Christiane Hamacher, CEO, Biocon Biologics, said in a statement:

"We appreciate the conviction of our institutional investors in the ‘value creation’ story of Biocon Biologics as a fully integrated ‘pure-play’ global biosimilars company. This equity infusion is the next step in our journey of unlocking value. Through prudent investments in R&D and high-quality manufacturing infrastructure, we are confident of achieving our aspiration of serving 5 million patients through our biosimilars portfolio and achieving a target revenue of $1 billion in FY22."

Further, Akhil Awasthi, Managing Partner, Tata Growth PE, said:

"The fund is delighted to partner with Biocon Biologics as part of our focus on export-oriented manufacturing in world-beating companies. The investment brings together 150+ years of brand equity of Tata’s and a very strong R&D based entrepreneur in Dr Kiran Mazumdar-Shaw with a golden track record of conceptualizing, investing, and creating billion-dollar businesses by a meticulous combination of R&D strengths and an exceptional management team".

The company is racing ahead with its biosimilar portfolio. The company is hopeful of achieving its revenue target by FY22. It has a portfolio of products lined up, says Christiane Hamacher, the CEO. So, the company's revenue target of $1 billion looks doable. Further, it aims to reach 5 million patients under its various biosimilar drugs.

Biocon Limited is an Indian biopharmaceutical company in Bangalore, India. Kiran Mazumdar-Shaw is the founder of the company. She is also one of the leading R&D entrepreneurs in the industry.