Biocon Biologics: Not looking for more funds

Bengaluru: Biocon Biologics is not immediately looking for any more capital infusion from private equity players, having fulfilled its requirements and raised a healthy cash balance since the beginning of last year, the unit's managing director,

Arun Chandavarkar

, said. The unit, Biocon's largest revenue generator and fastest growing, counts

Tata Capital

, PE firm True North and Goldman Sachs among its investors, besides Serum Institute of India, which is buying a 15% stake. The total capital raised is about $300 million. “The funds are being used for our research and development and capital expenditure,” Chandavarkar said.

The biologics business received a big boost earlier this year when its insulin Glargin got an interchangeable status from the

US FDA

, which will help it gain market share in a country dominated by Big Pharma.The benefits of it would kick in from next year when patients and pharmacies would have the choice to choose or provide the biosimilar, unlike previously when it had to be specifically mentioned in the prescription. When asked about the unit's $1 billion revenue target, Chandavarkar said the recent deal with Serum Institute, to get access to 100 million doses of vaccines annually for 15 years, will be a shot in the arm. “It will accelerate our ability to reach the target. It will be accretive and the combination will be of a reasonable size.” He declined to quantify the accretive revenue.
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