Biocon raises ₹1,070 crore from Kotak Special Situations Fund

• Biocon will use the proceeds to finance Biocon Biologics' acquisition of the biosimilars business of Viatris.
  
  
• Biocon Biologics completed the acquisition of Viatris’ global biosimilars business in November 2022.
  
  
• With this investment, the $1 billion Kotak Special Situations Fund is fully committed.
  

Kotak Special Situations Fund (KSSF) said on Wednesday it has invested ₹1,070 crore in biopharmaceutical major Biocon.

Biocon will use the proceeds to finance its subsidiary Biocon Biologics' acquisition of the biosimilars business of Viatris. Biocon Biologics completed the acquisition of Viatris’ global biosimilars business in November 2022.

“This investment in Biocon comes at a pivotal point when Biocon is forward-integrating its biosimilars business. Going forward, Biocon will realise full revenues and profits from this business. With this, the $1 billion Kotak Special Situations Fund is fully committed. India continues to offer unique and attractive risk-adjusted opportunities for hybrid funding strategies,” said Srini Sriniwasan, managing director, Kotak Investment Advisors that manages KSSF.

Biocon said, in its latest earnings concall, that it entered into definitive agreements with KSSF for structured funding. This, the company added, would help reduce its net debt.

“Viatris continues to provide commercial and other transaction services to Biocon Biologics as part of a pre-agreed Transition Services Agreement. In parallel, Biocon Biologics is designing a bespoke country-specific strategy and business model that optimises for revenues and profitability. This, we believe, will create value for all our stakeholders,” said Kiran Mazumdar-Shaw, chairperson of Biocon in the latest earnings concall.

Mazumdar-Shaw had also shared that they had also drawn up a comprehensive integration plan, and intended to start migrating business operations in a phased manner.

“We are delighted to partner with Biocon and this acquisition financing supports Biocon’s journey of becoming a world leading, fully integrated biosimilars enterprise,” said Eshwar Karra, CEO – KSSF at Kotak Investment Advisors.