Biocon acquires 49% Cuban partner CIMAB’s stake in JV

BANGALORE: Biotechnology major Biocon has fully acquired the joint venture Biocon Biopharmaceuticals from its Cuban partner CIMAB. Under the business restructuring plan, Biocon will pick up CIMAB’s 49% stake and will make Biocon Biopharmaceuticals (BBPL) a wholly owned subsidiary of Biocon.

Although the company did not announce the financial details of the deal, CMD Kiran Mazumdar Shaw told ET that the buyout was financed through internal accruals. The JV was established to provide manufacturing support for a range of jointly-developed biopharmaceuticals. This partnership had led to the launch of India’s first novel monoclonal antibody BIOMAbTM for the treatment of head and neck cancer. The company has also established Eryprotm as a brand in India, a company statement said.

“We realised that the facility was being underutilised, as it was manufacturing only a few products, and was therefore not financially viable,” Ms Shaw said. With Biocon’s expanding needs for biosimilars, the company sees the possibility of utilising the facility better through acquisitions and expects to turn it around within 3-5 years.

Manufacturing support to all partnered products will continue along with the joint development of novel biologics led by T1h programme. Biocon’s stock closed at Rs 303.85 on BSE, up 2.67% on Monday.