Aim to list biosimilar arm within three years: Biocon

Sharing information with its shareholders, Biocon CEO-MD Siddharth Mittal said it is important for the company to unlock value of the biosimilars business. “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,” Mittal noted. The Bengaluru-based company had hived off its biosimilars division into a separate unit – Biocon Biologics – in March 2019. A biosimilar is a biologic medical product highly similar to another already approved biological medicine.

The subsidiary, with its own dedicated infrastructure, now takes care of development, manufacturing and commercialisation of the biosimilars segment.

Mittal said it continues to engage with potential investors for raising the next tranche of investment in Biocon Biologics. “The expected private equity (PE) raise will be deployed towards the group’s funding requirements over the medium term across Small Molecules and the Biosimilar businesses,” he added. In case of a delay in the next round of the PE fund raise, the company does not envisage any impact on the timing of its investments and growth plans as the firm has enough headroom for additional leverage, Mittal noted.

Last fiscal, Biocon Biologics had raised USD 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 next year 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,” he said.

Biocon aims to generate $1 billion (about Rs 7,460 crore) revenues from the biosimilars segment alone by FY22.