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Goldman Sachs: Biocon Biologics to receive $150 million from Goldman Sachs against convertible debentures

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Bengaluru: Biocon Biologics, a subsidiary of Biocon, will receive an investment of $150 million (Rs 1125 crore) from Goldman Sachs against optionally convertible debentures, as the company aims to grow in global markets.

This transaction values Biocon Biologics at $3.94 billion

“The Board of its (Biocon’s) subsidiary Biocon Biologics has approved a Rs 1,125 Crore ($150 million) capital injection from Goldman Sachs. 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,” said Biocon in a press release.

Optionally convertible debentures are debt securities that allow the issuer (Biocon Biologics) to raise capital against interest. The investor also has a right to convert the debt into equities of the issuing company.

The company had earlier this year received a total investment of more than $105 million from True North and Tata Capital Fund and this round of capital infusion from Goldman Sachs would enable it to pursue growth in global markets and will help create value for shareholders, said the company.

“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.

Christiane Hamacher, CEO, Biocon Biologics, said Goldman Sachs’ capital infusion in Biocon Biologics demonstrates the confidence that large global institutions have in our capability to become a global leader in Biosimilars.

This capital injection by Goldman Sachs will enable the company to make prudent investments in research and development (R&D), high-quality manufacturing, as well as establish a global commercial footprint,” added Hamacher.

The company has one of the largest biosimilars portfolios globally, spanning recombinant human Insulin (rh-Insulin), insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas.

“The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for healthcare systems and improved patient access to treatments. Biocon Biologics, with a proven R&D track-record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry,” said Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs.

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