Biocon receives Rs 1,070 crore investment from Kotak Fund

23 Feb 2023 , 07:47 AM

The Kotak Special Situations Fund, run by Kotak Investment Advisers, disclosed a Rs 1,070 crore investment in Biocon on Wednesday.

To create a global vertically integrated biosimilars player, Biocon Biologics will utilize the proceeds to finance the acquisition of its partner Viatris’ biosimilars business.

The Kotak Special Situation Fund has invested all $1 billion of its corpus in Biocon at this time.

The timing of this investment in Biocon is crucial because the company is now integrating its biosimilar business. In the future, Biocon will realize all earnings and profits from this venture. With this, Srini Sriniwasan, managing director of Kotak Investment Advisers, announced that the $1 billion Kotak Special Situations Fund is fully committed.

‘We are happy to join with Biocon and this acquisition funding supports Biocon’s quest to build a global leading, fully integrated biosimilars organization,’ Eshwar Karra, CEO of Kotak Special Situations Fund of Kotak Investment Advisers, told ET.

As opposed to making a profit of Rs187 crore during the same quarter the year prior, Biocon reported a net loss of Rs42 crore in Q3FY23.

In comparison to the same period last year, its operating revenue increased 35% YoY to Rs2,941 crore for the third quarter under review. For the quarter, the company’s EBITDA increased 35% year over year to Rs723 crore, with a respectable EBITDA margin of 24%.

Shares of Biocon concluded yesterday’s trading session 2.16% lower at Rs222.15 on the BSE.

A multinational biopharmaceutical business called Biocon has created and marketed complicated small molecule APIs, biosimilars, and new biologics in markets outside of India as well as generic formulations in the US and Europe.

Eight biosimilars have been launched by Biocon Biologics, a Biocon subsidiary, in important emerging and developed countries like the US and Europe. The business also has a pipeline of 20 biosimilar assets for diabetology, oncology, immunology, and other non-communicable illnesses.

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