Biocon's biosimilar arm may raise $500 million to fund clinical development

(Ref: Business Line)
  • Biocon believes it will raise $500 million as part of an initial public offering for its Biocon Biologics unit, Business Line reported Thursday.

  • "We decided to create a Biocon Biologics as a standalone entity like Syngene," explained Biocon managing director Kiran Mazumdar-Shaw, adding "this will enable us to go to the capital market to raise more money if we want to develop another range of antibodies."

  • Mazumdar-Shaw did not disclose the total investment required to sustain Biocon Biologics.

  • "Our portfolio of [biosimilar] drugs is estimated to be a $60-billion market and is growing," the managing director noted.

  • Biocon Biologics recently received clearance to market a biologic version of trastuzumab in the US, while other biologics under review in the US and EU include insulin glargine and pelfilgrastim.

  • Motilal Oswal estimated that Biocon will generate about $350-400 million in sales from the three biosimilars in the medium term.