Abu Dhabi-based ADQ is to invest ₹555 crore for a 1.8 per cent stake in Biocon Biologics, a subsidiary of Biocon, at a post money valuation of $4.17 billion.

From January to November 2020, the company had raised over $255 million from global marquee investors: $75 million from True North Fund for a 2.44 per cent stake, $30 million from Tata Capital Growth Fund for a 0.85 per cent stake, and $150 million from Goldman Sachs via an issue of optionally convertible debentures.

The transaction is subject to customary approvals, Biocon said in a release. Post deal, it will hold a 89.89 per cent stake in Biocon Biologics on a fully diluted basis, it added.

Affordable biopharma

“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,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon. “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 $4.17 billion.”

Christiane Hamacher, MD and CEO of Biocon Biologics, said: “The ADQ equity funding 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.”

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. While we anticipate this will unlock shareholder value, it will also, importantly, deliver positive socio-economic impact with better health outcomes, optimised 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."

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