Biocon to list services unit in 18 mths
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Kiran Mazumdar-Shaw-led Biocon Ltd, India's largest listed biotechnology firm, plans to list its research services unit Syngene within the next 18 months or so.
We expect to unlock a lot of value from this particular business, Mazumdar-Shaw said in an interview. The IPO proceeds will certainly be used to support the increasing capex needs of Syngene, she added.
However, she declined to give any details on the initial public offering.
Mazumdar-Shaw also said Biocon is focusing on posting $1 billion in revenue in three to five years, helped by growth in its insulin business.
Biocon and Pfizer agreed last year to a deal in which Pfizer would globally sell insulin drugs made by Biocon.
Biocon has been in other deals as well. In 2009, it struck a deal with U.S. drug maker Mylan to develop and sell multiple generic biotech medicines for the global market. It also has a long-term research deal with Bristol-Myers Squibb.
Western drug companies, battling slowing sales in home markets, are looking at various avenues of boosting sales and cutting costs that include inking drug supply deals, research tie-ups and acquisitions in emerging markets.
Analysts on average expect Biocon's full-year net income of 3.8 billion rupees on revenue of 21.9 billion rupees, according to Thomson Reuters I/B/E/S.
MALAYSIAN R&D FACILITY
The company, whose flagship brands include Insugen for the treatment of diabetes and Abraxane for cancer, last week said it would invest about 500 million ringgit in its research and development facility in Malaysia.
Our facility in Johar Baru in the first phase is going to be an insulin facility and that is really to cater to Pfizer's global needs, Mazumdar-Shaw said.
The facility will be operational in three years and has a potential of creating more than 500 jobs, she added.
The company has about 6,000 employees.