True North to pick 2.44% minority stake in Biocon arm

New Delhi: Biotechnology major Biocon on Monday said private equity firm True North will invest Rs 536.25 crore to acquire 2.44 per cent stake in its arm Biocon Biologics, valuing the subsidiary at Rs 21,450 crore on a pre-money equity basis.

The board of Biocon Biologics India Ltd has approved a primary equity investment by True North.

As per the terms of the proposed agreement, True North will invest Rs 536.25 crore and will eventually translate to a 2.44 per cent minority stake in the biosimilars business after all restructuring, including the filed merger of Biocon Research Ltd with Biocon Biologics, Biocon said in a filing to the BSE.

This values Biocon Biologics at Rs 21,450 crore or around $3 billion, on a pre-money equity basis, it added.

"This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercialised three of its molecules in developed markets such as the EU, the US, Japan and Australia," Biocon Chairperson and MD Kiran Mazumdar-Shaw said.

This is at an important inflection point as, "we gain commercial success with our first wave of Biosimilar products and invest in the long term through broadening our pipeline, expanding our manufacturing capacity and increasing our commercial footprint," she added.