Kotak's alternative investment fund pumps in ₹1,070 cr in Biocon. Details here

Kotak Special Situations Fund (KSSF) on Wednesday announced an investment of a whopping RS 1,070 crore in Indian biopharmaceutical major, Biocon. The Bangalore-based pharma company plans to utilise the proceeds for financing its subsidiary Biocon Biologics' acquisition of the biosimilars business of its partner Viatris to create a global vertically integrated biosimilars player.

In a statement, Srini Sriniwasan, managing director, of Kotak Investment Advisors Limited said, “This investment in Biocon comes at a pivotal point when Biocon is forward integrating its biosimilars business. Going forward Biocon will realize full revenues and profits from this business."

Sriniwasan added, "With this, the USD 1 billion Kotak Special Situations Fund is fully committed. India continues to offer unique and attractive risk-adjusted opportunities for hybrid funding strategies.”

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

On BSE, Biocon's share price closed at ₹222.15 apiece down by 2.16%. The downside came in amidst a broader bearish market. The company's market cap is over ₹26,671 crore by end of February 22nd.

In Q3FY23, Biocon registered a net loss of ₹42 crore as against a profit of ₹187 crore in the same quarter last year, due to an exceptional item of ₹271 crore owing to Viatris deal-related expenses. On the other hand, Biocon's revenue from operations climbed 35% to ₹2,941 crore in Q3FY23, compared with ₹2,174 crore a year ago same quarter.

On February 14, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics in Q3 financial report said, "Q3 FY23 has been an eventful quarter which saw the completion of the global acquisition of our partnered Biosimilars business from Viatris on Nov 29, 2022. We are now implementing country-wise integration of the business to maximize the value of the combined entity to propel growth. Biosimilars as a business segment offers differentiated growth to Biocon Biologics based on vertical integration and a unique portfolio of Insulins and antibody-based immunotherapeutics. This quarter captures a fraction of the acquired business, but from Q4FY23 onwards, the financials will recognise the entire Biosimilars business."

While Biocon Biologics MD Shreehas Tambe said, the company recorded its highest-ever quarterly revenue of ₹1,507 crore, reflecting a growth of 54% on the back of its acquisition of Viatris' biosimilars business and continued growth in BBL-led markets.

Last year, in November, Biocon Biologics successfully completed its multi-billion-dollar acquisition of the global biosimilars business of its partner Viatris. This acquisition gives Biocon Biologics direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets, bringing it closer to patients, customers, and payors.

Biocon is an innovation-led global bio-pharmaceuticals company that has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and global markets and, generic formulations in US and Europe.

While Biocon Biologics (BBL), a subsidiary of Biocon, is a fully integrated global biosimilars company that has commercialized eight biosimilars in key emerging and advanced markets such as the US and Europe and has a pipeline of 20 biosimilar assets across diabetology, oncology, immunology, and other non-communicable diseases. It has many ‘firsts’ to its credit in the biosimilars industry.

Kotak Special Situations Fund (KSSF) is an Alternative Investment Fund under SEBI regulations managed by Kotak Investment Advisors.

Currently, KSSF manages a $1 billion fund and is uniquely positioned to be a provider of customized solution capital to corporates. KSSF has been targeting value propositions across a spectrum of opportunities, from growth to credit situations and stressed assets.