Biocon share rises more than 4 per cent on receiving Rs 1,125 crore investment from Goldman Sachs

Biocon Ltd announced that the board of its subsidiary, Biocon Biologics Ltd has approved a capital injection of Rs 1,125 crore from Goldman Sachs on Saturday. Under the terms of the agreement, Goldman Sachs will be issued optionally convertible debentures at a post-money equity valuation of USD 3.94 billion.

Today, the stock of Biocon jumped more than 4 per cent and made an intraday high of Rs 431.90.

Biocon Biologics believes that the investment by Goldman Sachs demonstrates the confidence, which large global institutions have in its capabilities, of becoming a global leader in biosimilars.

The company is planning to spend the received investment in R&D for developing high-quality manufacturing as well as for establishing a global commercial footprint.

Recently, it has launched three products in the US, which are a biosimilar monoclonal antibody (Trastuzumab), a therapeutic protein (Pegfilgrastim), and an Insulin analog (Glargine).

The company has set a target of serving 5 million patients through biosimilars portfolio and also, of achieving a revenue of USD 1 billion by FY22.

Goldman Sachs believes that Biocon Biologics, with a proven track record of R&D and established worldwide strategic partnerships, is well-positioned to grow and become a major global player in this segment of the pharmaceutical industry.

Biocon Biologics is involved in the development of high-quality, affordable biosimilars that will expand patient access to a class of therapies across the world.

At 10.40 am today, the share of Biocon was trading at Rs 417.90 on BSE, up by 0.76 per cent.