The proceeds will be used to finance Biocon Biologics’ acquisition of the biosimilars business of its partner Viatris to create a global vertically integrated biosimilars player.
With the current investment in Biocon, the Kotak Special Situation Fund has deployed 100% of its corpus of $1 billion.
“This investment in Biocon comes at a pivotal point when Biocon is forward integrating its biosimilars business. Going forward Biocon will realize full revenues and profits from this business. With this, the USD 1 billion Kotak Special Situations Fund is fully committed,” Srini Sriniwasan, Managing Director of Kotak Investment Advisors, said.
Eshwar Karra, CEO – Kotak Special Situations Fund at Kotak Investment Advisors said, “We are delighted to partner with Biocon and this acquisition financing supports Biocon’s journey of becoming a world leading, fully integrated biosimilars enterprise.”
In Q3FY23, Biocon posted a net loss of Rs 42 crore as against a profit of Rs 187 crore in the same period of the previous year.
Its revenue from operations surged 35% YoY to Rs 2,941 crore for the third quarter under review, compared with Rs 2,174 crore in the last-year period. The company’s EBITDA rose 35% year-on-year to Rs 723 crore for the quarter with a healthy EBITDA margin of 24%.In today’s trade, shares of Biocon closed 2.16% lower at Rs 222.15 on BSE.
Biocon is a global bio-pharmaceuticals company that has developed and commercialized novel biologics, biosimilars and complex small molecule APIs in India and global markets, and generic formulations in US and Europe.
Biocon Biologics, a subsidiary of Biocon, is a fully integrated global biosimilars company that has commercialized eight biosimilars in key emerging and advanced markets such as the US and Europe and has a pipeline of 20 biosimilar assets across diabetology, oncology, immunology and other non-communicable diseases.