Biocon Biologics (a subsidiary of Biocon since 2017) is responsible for Biocon’s high accelerated growth and aided its biologics business to grow quickly. The company met across a strange increase in sales by 63% during the first half of the financial 2020.
Biocon Biologic’s high valuation of $3 billion in 2020 has shocked the market. The company managed to raise Rs.530 crore from a domestic equity fund. Now, the subsidiary Biocon Biologics has achieved a 60 percent valuation of the parent company, Biocon. Many are struggling to find the reason behind the company’s such astonishing valuation.
Kiran Mazumdar Shaw, MD of Biocon biologics, said that Biocon has set the origin of valuation as $3 billion. If one sees the fixed value of Syngene, it appears that Biocon’s stock is undervalued. She also indicated the reason behind Biocon’s stock to get appreciation in the business market with escalating the importance of Biologics supply to the market in upcoming decades. Biologics are going to overtake small molecule pharma drugs in future years.
At last, she said that a stock dilution of Biocon Biologics can raise $200 million and is going to help in revealing huge value for Biocon. Being one of the fastest-growing biosimilar companies, Biocon recently has introduced three biosimilars in the extremely controlled international markets.
Forthcoming Plans of Biocon Biologics for Raising $200 Mn
Kiran Mazumdar Shaw, MD of Biocon Biologics, has recently communicated to a national journal regarding the upcoming plans of Biocon Biologics. According to reports, Biocon is onset to raise near about $200 million for its Biologics section in the forthcoming months. This can happen in the coming two years.
Biocon further plans to fund its research and development, and to capitalize expansion of its bio-similar business, according to Kiran Mazumdar Shaw.
Mazumdar Shaw informed that such a situation already has been encountered at the time of the deal with Syngene. Biocon’s small molecules segment met constant growth and its revenue reached around 100 crores in the month of the October-December quarter.
Rumours Arising This Month for Biocon Biologics
Biocon revealed this month’s update regarding True North’s investment in Biocon Biologics around INR. 536.25 Crore (approx. $7 million). This will raise Biocon’s valuation to approx. INR. 21,450 crore ($3 billion). True North’s long term relationships with Biocon forms good reason behind the high probability of this investment deal.
Biocon aims to seek fundraising from global investors like Singapore’s Temasek Holdings and CDC (the investment arm of the UK Government). There is a huge possibility for True North to participate in fund-raising along with these investors. Biologics can see its key market areas in the US, Latin America, Mexico, North Africa, and the Middle East.