Is it true that Abu Dhabi based fund is taking a stake in Biocon Biologicals, the unit of Biocon?

Biocon Biologics is in talks with ADQ, the Abu Dhabi government’s sovereign wealth fund, to buy a stake into Biocon Biologicals. It may be recollected that Biocon Biologicals is the bio-similar arm of Biocon and it is planning an IPO soon. Very recently, Biocon had announced a $150 million infusion into the company by Goldman Sachs.

For Biocon Biologicals, this effectively translates into an equity valuation of $3.94 billion. The IPO is targeted to h it the market in India over the next 2-3 years. This deal could also mark the first investment by ADQ into the Indian pharmaceutical sector.

ADQ is in talks to invest $100 million in Biocon Biologics and due diligence is in process right now. Biocon Biologics will build value and invest in its R&D and manufacturing capabilities. For ADQ, it gives exposure to a high-quality pharma and healthcare play in India with strong pedigree. Bio-similars are biologic products similar to biologic medicines.

Biocon Biologicals has set a target of serving 5 million patients and clocking $1 billion in revenues by FY22. Towards this end, the ADQ deal will help as ADQ can help Biocon Biologics get better access to the Middle East market.