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Goldman Sachs: Biocon Biologics to obtain $150 million from Goldman Sachs in opposition to convertible debentures

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Bengaluru: Biocon Biologics, a subsidiary of Biocon, will obtain an funding of $150 million (Rs 1125 crore) from Goldman Sachs in opposition to optionally convertible debentures, as the corporate goals to develop in world markets.

This transaction values Biocon Biologics at $3.94 billion

“The Board of its (Biocon’s) subsidiary Biocon Biologics has approved a Rs 1,125 Crore ($150 million) capital injection from Goldman Sachs. As per the terms of the proposed agreement, Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of $ 3.94 Billion,” stated Biocon in a press launch.

Optionally convertible debentures are debt securities that permit the issuer (Biocon Biologics) to boost capital in opposition to curiosity. The investor additionally has a proper to transform the debt into equities of the issuing firm.

The firm had earlier this yr obtained a complete funding of greater than $105 million from True North and Tata Capital Fund and this spherical of capital infusion from Goldman Sachs would allow it to pursue progress in world markets and can assist create worth for shareholders, stated the corporate.

“We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflection point of Biocon Biologics’ journey in its quest for global leadership in providing affordable access through Biosimilar drugs. This transaction is a part of the overall strategic plan of value creation for our shareholders through Biocon Biologics,” stated Kiran Mazumdar-Shaw, government chairperson, Biocon.

Christiane Hamacher, CEO, Biocon Biologics, stated Goldman Sachs’ capital infusion in Biocon Biologics demonstrates the boldness that giant world establishments have in {our capability} to change into a worldwide chief in Biosimilars.

This capital injection by Goldman Sachs will allow the corporate to make prudent investments in analysis and growth (R&D), high-quality manufacturing, in addition to set up a worldwide industrial footprint,” added Hamacher.

The firm has one of many largest biosimilars portfolios globally, spanning recombinant human Insulin (rh-Insulin), insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and different continual illness areas.

“The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for healthcare systems and improved patient access to treatments. Biocon Biologics, with a proven R&D track-record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry,” stated Som Krishna, a managing director within the Merchant Banking Division at Goldman Sachs.

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