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Goldman Sachs financially injects into the Biocon’s arm Biologics

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Goldman Sachs injects capital into the Biocon arm
Goldman Sachs injects capital into the Biocon arm. Photo by Olga Subach on Unsplash

The Biocon arm recently contributed funding towards Metro’s construction, and now it is said to witness a capital contribution from Goldman Sachs. In October 2020, Biocon management was eager to onboarding a leading investment MNC like Goldman Sachs for an IPO round.

Following this, on November 7, 2020, its subsidiary Biocon Biologics mentioned in a press release that the board had assented capital of $150 million from Goldman Sachs. Kiran Mazumdar Shaw, the executive chairperson of Biocon, said: “We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflection point of Biocon Biologics in the quest for global leadership.”

For this purpose, Biocon’s biopharmaceutical company is valued using the method of a post-money valuation of $3.94 billion. As per this valuation, optionally convertible debentures will be issued by Goldman Sachs.

The merchant banking division at Goldman Sachs mentioned that “the global growth of Biosimilars coupled with collaborative regulatory pathways is taking place at a rapid pace.” This additional capital will cater to Biocon’s strategic plans and contribute to value creation for shareholders.

It aspires to outreach 5 million patients globally through its niche “Biosimilars” portfolio by 2022. Expanding further, Biocon is also on a streak to improve its top-line growth by achieving a $1 billion revenue target.

Industry experts believe that this particular investment will majorly nurture the R&D and global manufacturing plans.

Founded in 1978, Biocon Biologics, an arm of Biocon, is engaged in manufacturing generic APIs and affordable biosimilars as a class of therapies for its customers.

In the past, the company had received more than $100 million from True North and Tata Capital Fund for growth in global markets. With Goldman Sachs as the new investor, Biocon holds the capacity and confidence to become a global leader in Biosimilars. It also has strategic partnerships with Mylan to be a significant global player in the pharmaceutical industry’s dynamic segment.

It is known to have the largest portfolios in biosimilars that span over recombinant human insulin, insulin analogs, monoclonal antibodies, and therapeutic proteins for chronic diseases. The company is also building on rapid insulins that can make a huge difference to diabetes patients worldwide.

With the current scenario of the pharmaceutical industry, Biologics is also set to expand with lower-priced drugs in the patients’ market.

An avid learner having infatuation for numbers and finance. Also, an individual with unfiltered opinions who likes to mix the metrics of both professionalism and creativity.

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