Tata Capital Growth Fund, an investment vehicle for diversified conglomerate Tata, has agreed to pay Rs 2.25bn ($30m) for a 0.85% stake in Biocon Biologics, a subsidiary of India-based pharmaceutical firm Biocon.
Biocon Biologics develops, produces and commercialises biosimilars – medical treatments that work similarly to already approved drugs – on behalf of Biocon.
The offshoot has so far commercialised three such treatments in at least one of Japan, the United States and the European Union, and has 28 biosimilar molecules in development across areas including oncology, immunology, dermatology, ophthalmology, diabetes, neurology and inflammatory diseases.
The deal will value Biocon Biologics at $3.5bn and Biocon itself will retain a stake sized at approximately 92.3%. Private equity firm True North had agreed in June this year to invest about $75m in the spinoff at a pre-money valuation of $3bn.
The investment by Tata, which already operates a digital healthcare subsidiary known as Tata Health, will support the strengthening of Biocon Biologics’ manufacturing capabilities along with its research and development activities.
Biocon Biologics CEO Christiane Hamacher said: “We are pleased with Tata Capital’s investment in Biocon Biologics, which is an endorsement of the value we have created through our demonstrated success and credibility as a global biosimilars player, with two products commercialised in the US and the launch of the third biosimilar on the anvil.
“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.”
