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True North to Invest Rs 536.25 Crore in Biocon Biologics for 2.44% Stake

Deal Values Biocon Biologics at ~USD 3 Billion

BENGALURU, India; January 6, 2020:  

Biocon Ltd (BSE code: 532523, NSE: BIOCON), an innovation-led global biopharmaceuticals company, today announced that the Board of its subsidiary Biocon Biologics India Ltd (Biocon Biologics) 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 that will eventually translate to a 2.44% minority stake in the biosimilars business post all restructuring, including the filed merger of Biocon Research Ltd with Biocon Biologics, valuing Biocon Biologics at Rs 21,450 Crore or ~USD 3 billion on a pre-money equity basis.

The transaction is subject to standard condition precedents including regulatory approvals. Post the completion of this transaction, Biocon will hold 96.07% stake in Biocon Biologics.

Kiran Mazumdar-Shaw, Chairperson & Managing Director, Biocon said, “We are extremely pleased to welcome back True North as a shareholder in our group. True North has been a committed investor in both Biocon and Syngene prior to listing. This investment is an endorsement of the value that Biocon Biologics has demonstrated as a global biosimilars player, having commercialized three of its molecules in developed markets like EU, U.S., Japan and Australia. 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. We have thus started the value unlocking process with the aim of investing, competing and winning in the large and growing opportunity for biosimilars.”

Dr. Christiane Hamacher, CEO, Biocon Biologics, said, “The investment by True North in Biocon Biologics is an exciting development, which validates our science, scale, scope and strategy. It also reflects a high level of conviction in Biocon Biologics' status as a global frontrunner in biosimilars that is leveraging its large scale manufacturing capabilities to shift the access paradigm for these life-saving therapies. Through prudent investments in R&D, high quality manufacturing infrastructure as well as commercial and market access infrastructure, we are confident of achieving our aspirational goal of serving 5 million patients through our biosimilars portfolio and reaching our aspirational revenue target of USD 1 billion in FY22.”

Chinappa M.B., CFO, Biocon Biologics, said, "The equity infusion by True North will enable expansion of our R&D and manufacturing capabilities to meet the growing demands of patients worldwide. It will fuel the future growth of the business as we pursue our mission to establish Biocon Biologics as a leading global player in biosimilars. The pre-money equity valuation reflects the confidence in Biocon Biologics' current business and future prospects."

Satish Chander, Partner, True North, said, Healthcare and Life Sciences has been a focus sector for True North with investment of USD 600 million across 10 companies till date. True North has had a long successful association with Kiran Mazumdar-Shaw and the entire Biocon team and see them as pioneers and leaders in specialized niches. We truly admire their ability in incubating and scaling up new focused businesses and we have had the opportunity to invest earlier in two such businesses - Biocon and Syngene. We are happy to associate with them for the third time through this investment in Biocon Biologics. Biosimilars is a fast growing industry that addresses a fundamental need of bringing affordability to specialized effective biologic products. Biocon Biologics has been one of the global leaders with their early success in developing and commercializing multiple products across geographies. We are very excited at this opportunity to partner with Biocon Biologics which is poised for explosive growth.”

Biocon Biologics is a fully-integrated ‘pure play’ biosimilars organisation globally committed towards transforming patient lives through innovative and inclusive healthcare solutions. It is engaged in developing high-quality, affordable biosimilars aimed at expanding patient access to cutting-edge class of therapies across the world. 

Biocon Biologics has one of the largest biosimilars portfolios, a wide global footprint, state-of-the-art manufacturing facilities, world-class R&D ecosystem, and high quality & compliance standards, enabling it to fulfil unmet needs of patients across the globe. It has a product pipeline of 28 molecules, including 11 with Mylan, several with Sandoz, and is developing many independently. The Company’s therapeutic basket includes molecules for diabetes, oncology, immunology, dermatology, ophthalmology, neurology, rheumatology and inflammatory diseases. So far, the company has commercialized five biosimilars: Trastuzumab, Pegfilgrastim, Bevacizumab, rh-Insulin and Insulin Glargine, in several markets worldwide. The company has commercialised three biosimilars in the developed markets like the EU, Australia, U.S. and Japan. 

With the scientific capabilities, scale of manufacturing, large product pipeline, strong talent pool and expertise in developing and commercialising biologics, the company aims to serve 5 million patients through its biosimilars and reach USD 1 billion revenue mark in FY22. 

About Biocon Limited:

Biocon Limited, publicly listed in 2004, (BSE code: 532523, NSE Id: BIOCON, ISIN Id: INE376G01013) 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.  www.biocon.com Follow-us on Twitter: @bioconlimited

Biocon Biologics is a subsidiary of Biocon Ltd. It is uniquely positioned as a fully integrated ‘pure play’ biosimilars organization in the world and aspires to transform patient lives through innovative and inclusive healthcare solutions. The Company’s portfolio of biosimilar molecules comprises a rich pipeline of approved and in-development biosimilars, which are an outcome of its high end R&D and global scale manufacturing expertise. The Company has commercialized three of its biosimilars in the developed markets like EU, U.S., Japan and Australia. It is a leading global insulins player with over 15 years of experience in addressing the needs of patients with diabetes, having provided over 2 billion doses of human insulin worldwide, thus far. Follow-us on Twitter: @BioconBiologics

About True North

True North was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class industry leaders, built on the strong foundation of True North Values which are embodied within the principles of ‘The Right Way’. True North has built deep knowledge and skills in the Indian markets and has successfully launched six separate investment funds with a combined corpus of over USD 2.9 billion including co-investments. True North’s insights and understanding of India has been sharpened over the last 20 years by investing in more than 50 Indian businesses. It has successfully guided these companies in making the transition into well-established and large businesses that are valuable, enduring and socially responsible. The True North team has been structured with a balanced mix of 7 Investment and 18 Business Managers, who bring with them several hundred man-years of industry experience to achieve the above objective. For more details, visit: www.truenorth.co.in

Forward-Looking Statements: Biocon

This press release may include statements of future expectations and other forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects upon Biocon and its subsidiaries/ associates. These forward-looking statements involve known or unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from our expectations include, amongst other: general economic and business conditions in India and overseas, our ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currency changes, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition in and the conditions of the Indian and global biotechnology and pharmaceuticals industries, changes in political conditions in India and changes in the foreign exchange control regulations in India. Neither Biocon, nor our Directors, or any of our subsidiaries/associates assume any obligation to update any particular forward-looking statement contained in this release.

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