[Funding alert] Biocon Biologics raises Rs 555Cr from Abu Dhabi-based ADR at $4.17B valuation

Biocon Biologics Ltd, a subsidiary of Indian biopharmaceutical major Biocon, on Thursday said it has approved a primary equity investment from Abu Dhabi-based holding company ADQ. 

According to an official statement, ADQ will be investing Rs 555 crore for a 1.80 percent minority stake. Following the deal, Biocon Biologics will be valued at $4.17 billion.

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The announcement comes two months after the biotechnology company approved a Rs 1,125 crore investment from Goldman Sachs in exchange for optionally convertible debentures.

Besides, it also raised $75 million through a primary equity infusion by True North Fund for a 2.44 percent stake, while Tata Capital Growth Fund picked up a 0.85 percent stake for $30 million. Biocon Biologics raised a total of $255 million between January and November 2020. 

“We welcome ADQ as our investment partner as we pursue our shared goal of expanding access to high-quality affordable biopharmaceuticals to patients across the globe. This investment is an endorsement of the value that Biocon Biologics business has built as a fully-integrated pure-play biosimilars company, and will enable us to expand our capabilities further,” Biocon Executive Chairperson Kiran Mazumdar-Shaw said.

The Bengaluru-based biopharmaceutical firm is involved in developing quality and affordable biosimilars to expand patient access to a cutting-edge class of therapies across the world.

Its biosimilars portfolio includes recombinant human insulin (RH-Insulin), insulin analogues, monoclonal antibodies, and therapeutic proteins for oncology, immunology, and other chronic disease areas. 

Speaking about the investment, H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, said, “Our long-term ambition for ADQ’s healthcare and pharma portfolio is to create a provision-centred, digitally-enhanced ecosystem that is anchored in world-class clinical excellence, effective population health management, and resilient supply chain infrastructure. Biocon Biologic’s proven R&D track record and partnerships worldwide provide us with an opportunity to benefit from the biosimilar sector that is set to grow as patents of originator biologics expire and patients demand lower-priced drugs globally.”