Biocon to receive US $3.94 bn
US-based investment bank and financial services company Goldman Sachs will pump in a capital injection of $150 million (Rs 1,125 crore) to Biocon Biologics, a subsidiary of Biocon, against optionally convertible debentures.
Biopharma major Biocon said that the board of its subsidiary Biocon Biologics has approved a $150 million capital injection from Goldman Sachs at an 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.
"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.
"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.
According to Christiane Hamacher, CEO, Biocon Biologics, 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 confirms.
"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
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