Biocon Biologics plans to raise $300 million in FY24

26 May 2023 , 12:27 PM

Biocon Limited-led arm, Biocon Biologics, is planning to raise additional equity of $300 million by the end of FY24. Reportedly, the company will utilize the said funding to pay off the debt it has accumulated for funding the acquisition of $3.3 billion Viatris’ biosimilar business.

Mazumdar-Shaw stated that she prefers to pare private equity investments but welcomes structured investment deals if it is in the best interests of the company. Structured deals generally give assured returns on investment.

In December 2022, Biocon’s net debt reached $1.9 billion. The company has reduced debt by around $650 million. Primarily by raising $270 million for a stake sale in Syngene. Further, it converted a $150 million loan into equity in Biocon Biologics by Serum. The company also received some structured investments worth $130 million from Kotak and a $98 million deal by Edelweiss.

Mazumdar-Shaw stated that she is determined to Biocon Biologics’ IPO. However, in order to get the right valuation, the company should be able to meet certain triggers such as the launch of its key biosimilar adalimumab in the US, as well as sustained growth momentum, and USFDA approvals of insulin aspart and bevacizumab.

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