Biopharmaceutical Giant Biocon said that a capital injection of $75 million from Abu Dhabi-based ADQ was authorised by the Board of its subsidiary Biocon Biologics.

ADQ will earn a 1.8 percent interest in the biosimilar company under the terms of the proposed deal, valuing Biocon Biologics at a $4.17 billion post-money valuation. “This investment is an affirmation of the value generated as a fully integrated pure-play biosimilars sector by the Biocon Biologics group and will enable us to further develop our capabilities. To create savings for healthcare services worldwide, we are committed to following our affordable breakthrough model,” said Kiran Mazumdar-Shaw, Executive Chairperson, Biocon.

This is the fourth fund set up by the Bengaluru-based firm in 12 months. Last year, True North and Tata Capital private equity players raised a minority stake in Biocon Biologics at $75 million and $30 million respectively. The board also accepted a $150 million capital infusion from Goldman Sachs, a major finance and investment company, in November.

“Biocon Biologics' ADQ equity investment endorses the importance of our business model and reinforces our commitment to be the world leader in biologics, to provide affordable access to imaginative and inclusive healthcare solutions, to change the lives of patients,” said Christiane Hamacher, CEO & Managing Director, Biocon Biologics.

Biocon Biologics, which expects an IPO, has a platform of 28 biosimilar molecules spanning diabetes, oncology, immunology, dermatology, ophtalmology, neurology, rheumatology and inflammatory diseases. Its Insulin Glargine was sold in the US last year, opening up a potential of $2.2 billion for the R&D-rich business. In the insulin portfolio, the company is currently working on a pipeline of two new drugs, including Aspart and Lispro, both rapid-acting insulin analogues. The organisation strives to improve healthcare by creative, sustainable strategies and to effect the lives of five million patients by FY22.

H.E. Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ said, “The established R&D track record and collaborations of Biocon Biologic around the world offer us the potential to benefit from the biosimilar market that is poised to expand as patents of originator biologics expire and patients globally demand lower priced drugs.”