Biocon Biologics Receives Rs 555 Cr (USD 75 Million) Capital Injection From ADQ

Transaction Values Biocon Biologics at ~USD 4.17 Billion

Biocon Ltd, an innovation-led global biopharmaceuticals company, today announced that the Board of its subsidiary Biocon Biologics Ltd (“Biocon Biologics”) has approved a primary equity investment by Abu Dhabi based ADQ (“ADQ”), one of the region’s largest holding companies. As per the terms of the proposed agreement, ADQ will invest Rs 555 Crore for a 1.80% minority stake in the biosimilar business, valuing Biocon Biologics at a post money valuation of ~USD 4.17 billion^[1].

The transaction is subject to customary condition precedents and approvals. Post the completion of this transaction, Biocon Ltd will hold 89.89% stake in Biocon Biologics on a fully diluted basis.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said: “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. We are committed to pursue our affordable innovation model to generate savings for the healthcare systems worldwide. 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. The current investment has put post money valuation of Biocon Biologics at ~USD 4.17 billion.”

Dr Christiane Hamacher, CEO & Managing Director, Biocon Biologics, said: “The ADQ equity funding in Biocon Biologics endorses the value of our business model and strengthens our resolve to be the global leader in biologics, delivering affordable access to innovative and inclusive healthcare solutions, transforming patients’ lives. Our relentless desire to make a real difference pushes us to redefine innovation and build a disruptive business model that lowers treatment costs and improves healthcare outcomes, whilst delivering on shareholder value and our business objectives.”

H.E. Mohamed Hassan Alsuwaidi, Chief Executive Officer 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. While we anticipate this will unlock shareholder value, it will also, importantly, deliver positive socio-economic impact with better health outcomes, optimized healthcare spend and more opportunities for local and international talent. 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.”

Biocon Biologics is engaged in developing high-quality, affordable biosimilars that expand patient access to a cutting-edge class of therapies across the world. 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. Biocon Biologics has the full spectrum of insulins (regular, basal and rapid) in its pipeline and the global scale necessary to make a difference to diabetes patients worldwide.

With the demand for biosimilars set to grow as patents of originator biologics expire and patients demand lower priced drugs, Biocon Biologics is well positioned to expand access.

Biocon Biologics had raised over USD 255 million from global marquee investors from Jan to Nov 2020. The Company has raised USD 75 million through a primary equity infusion by True North Fund for a 2.44% stake; Tata Capital Growth Fund picked up a 0.85% stake for USD 30 million. Goldman Sachs made a capital injection of USD 150 million in exchange for Optionally Convertible Debentures of Biocon Biologics.

About Biocon Limited:
Biocon Limited, publicly listed in 2004, is an innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune. It has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets as well as generic formulations in the US and Europe. It also has a pipeline of promising novel assets in immunotherapy under development. For more information, visit www.biocon.com.

About Biocon Biologics Limited:
Biocon Biologics Limited, a subsidiary of Biocon Limited, is uniquely positioned as a fully integrated ‘pure play’ biosimilars organization in the world. Building on the four pillars of Patients, People, Partners and Business, Biocon Biologics is committed to transforming healthcare and transforming lives. Biocon Biologics is leveraging cutting-edge science, innovative tech platforms and advanced research & development capabilities to lower treatment costs while improving healthcare outcomes. It has a platform of 28 biosimilar molecules across diabetes, oncology, immunology, dermatology, ophthalmology, neurology, rheumatology and inflammatory diseases. Five molecules from Biocon Biologics’ portfolio have been taken from lab to market, of which three have been commercialized in developed markets like United States, EU, Australia, Canada and Japan. With a team of over 4500 people Biocon Biologics aspires to transform healthcare through affordable innovative solutions as well as impact 5 million patients’ lives by FY 22. For more information, visit www.biocon.com/businesses/biosimilars/.

About ADQ:
Established in Abu Dhabi in 2018, ADQ is one of the region’s largest holding companies with direct and indirect investments in more than 90 companies locally and internationally. Both an asset owner and investor, ADQ’s broad portfolio of major enterprises span key sectors of a diversified economy, including energy and utilities, food and agriculture, healthcare and pharma, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the emirate into a globally competitive and knowledge-based economy. For more information, visit adq.ae.

^[1] Using USD:INR exchange rate of ~74