As per the terms of the proposed agreement, ADQ will invest Rs 555 crore for a 1.8 per cent minority stake in the biosimilar business, valuing Biocon Biologics at a post money valuation of USD 4.17 billion, it added.
The transaction is subject to customary condition precedents and approvals and if it goes through, Biocon's stake would come down to 89.89 per cent in Biocon Biologics on a fully diluted basis.
"This investment is an endorsement of the value that Biocon Biologics business has built as a fully integrated pure-play biosimilars company and will enable us to expand our capabilities further. The current investment has put post money valuation of Biocon Biologics at USD 4.17 billion," Biocon's Executive Chairperson Kiran Mazumdar-Shaw said.
ADQ Chief Executive Officer Mohamed Hassan Alsuwaidi said: "Our long-term ambition for ADQ''s 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."
While the company anticipates this will unlock shareholder value, it will also, importantly, deliver positive socio-economic impact with better health outcomes, optimised healthcare spend and more opportunities for local and international talent, he added.
Biocon Biologics is engaged in developing biosimilars that expand patient access to a cutting-edge class of therapies across the world.
The company has one of the largest biosimilars portfolios globally, spanning recombinant human Insulin (rh-Insulin), insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas.
Biocon Biologics also has the full spectrum of insulins (regular, basal and rapid) in its pipeline and the global scale necessary to make a difference to diabetes patients worldwide.
Biocon Biologics had raised over USD 255 million from global marquee investors in the January-November period of 2020.
The company has raised USD 75 million through a primary equity infusion by True North Fund for a 2.44 per cent stake; Tata Capital Growth Fund has picked up a 0.85 per cent stake for USD 30 million.
Besides, Goldman Sachs has made a capital injection of USD 150 million in exchange of optionally convertible debentures of Biocon Biologics.