Biocon gains 2% as arm receives Rs 555 crore equity investment from ADQ

NEW DELHI: Shares of Biocon rose 2 per cent in Friday's trade after the drug maker said its subsidiary Biocon Biologics approved a primary equity investment by Abu Dhabi-based ADQ.

ADQ is one of the region's largest holding companies.

As per the terms of the proposed agreement, ADQ will invest Rs 555 crore for a 1.80 per cent minority stake in the biosimilar business, valuing Biocon Biologics at a post money valuation of $4.17 billion, Biocon said in a statement.

Following the development, the stock added 2.42 per cent to hit a high of Rs 466 on BSE.

Post the completion of this transaction, Biocon will hold 89.89 per cent stake in Biocon Biologics on a fully diluted basis.

Kiran Mazumdar-Shaw, Executive Chairperson at Biocon in a company filing to BSE said, "We welcome ADQ as our investment partner as we pursue our shared goal of expanding access to high quality affordable biopharmaceuticals to patients across the globe."

She said the current investment has put post money valuation of Biocon Biologics at $4.17 billion.

Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ, said, "Our long-term ambition for ADQs healthcare and pharma portfolio is to create a provision-centred, digitally enhanced ecosystem that is anchored in world-class clinical excellence, effective population health management and resilient supply chain infrastructure."