Aim to list Biocon Biologics on capital markets by 2023: CFO MB Chinappa

Biocon Biologics plans to raise funds in the $200-$300 million range over the next six months to increase its Research and Development (R&D) portfolio and manufacturing. The demand for biosimilars in most of the world (MoW) markets is rapidly increasing and Biocon Biologics has one of the largest biosimilars’ portfolio, which includes 28 biosimilar molecules across diabetes, oncology, immunology, among others. The company is also planning to get listed on capital markets by 2023.

Speaking to Financial Express, MB Chinappa, Chief Financial Officer - Biocon Biologics, has said that  the plans to invest $200 million per year in capex for FY21 and FY22 to support R&D requirements.

"Through prudent investments in R&D and high-quality manufacturing infrastructure, we are confident of achieving our aspiration of serving five million patients through our biosimilars portfolio and achieving a target revenue of $1 billion in FY22," Chinappa said.

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The company recently raised $30 million via the PE deal by Tata Capital. When asked if there are plans to raise more money, the CFO said, "As indicated last year, our total fund-raising plans are in the range of $200-$300 million. We expect to complete the balance fundraising over the next six months."

Biocon Biologics has raised $105 million so far in 2020 through two primary equity infusions. Earlier in January, the company raised $75 million as primary equity infusion by True North Fund for a 2.44 percent stake in the business.

Chinappa further said that Biocon Biologics was likely to be listed on the Indian capital markets in the next two to three years.

"We intend to list Biocon Biologics in the next two to three years. However, it would be early to comment on specific IPO timelines as it is dependent on business performance and market conditions," he said.