Biocon Aims To List Biocon Biologics In India In Next 2-3 Years: Annual Report
It is important for Biocon to unlock value of its biosimilars business, CEO Siddharth Mittal says in the annual report for FY20.
Biotechnology major Biocon Ltd. aims to list its biosimilar unit Biocon Biologics in the next two to three years, depending on the market conditions, the company said in its annual report for 2019-20.
It is important for the company to unlock value of the biosimilars business, Biocon’s Chief Executive Officer and Managing Director Siddharth Mittal said. "We intend to list Biocon Biologics on the Indian capital markets in the next two to three years. However, it would be early to comment on specific IPO timelines as it is dependent on business performance and market conditions," he said.
The Bengaluru-based company had hived off its biosimilars division in March 2019. The subsidiary, with its own dedicated infrastructure, now takes care of development, manufacturing and commercialisation of the biosimilars segment.
A biosimilar is a biologic medical product highly similar to another already approved biological medicine.
According to Mittal, Biocon continues to engage with potential investors for raising the next tranche of investment in Biocon Biologics. "The expected private equity raise will be deployed towards the group's funding requirements over the medium term across Small Molecules and the Biosimilar businesses," he said.
In case the fundraising is delayed, the company does not envisage any impact on the timing of its investments and growth plans as it has enough headroom for additional leverage. Biocon Biologics had in 2019-20 raised $75 million in private equity from Activ Pine LLP, an affiliate of True North Fund.
Mittal said the planned scale up of the biosimilars business would further help the company to execute its investment plans. "As the Biosimilars business scales up next year and generates the kind of margins that have been indicated, it will also generate operating cash to fund our investment objectives.”
Biocon aims to generate $1 billion revenue from the biosimilars segment by FY22. The market opportunity in the vertical is expected to double over the next couple of years with developed market sales projected to increase in FY21 and beyond, Mittal said.
On Friday, Biocon shares rose 0.93% to Rs 395.55 apiece on the BSE while the benchmark Sensex gained 0.50% to end the day at 36,021.42 points.