Biocon plans to list its Syngene International research subsidiary on the India stock market by launching a $160 million initial public offering. With money in Syngene's pockets, Biocon then plans to sell 10% of its holdings to raise about $95 million for its own research.
Indian biotech giant Biocon is planning to take Syngene, its in-house CRO, public in an IPO on the local exchange.
Many of the largest pharmaceutical firms operating in India are contemplating becoming "paper tigers," existing there only on paper, with facilities moved to other countries. Regulatory delays get the blame.
Biocon has discussed the need to sell off 10% to 15% of the company's research services arm Syngene through an initial public offering to raise needed cash for research as well as to pay for production expansion. Now the Indian company has notified investors that Syngene will build a new active pharmaceutical ingredient plant in Mangalore.
Rumors have it that Biocon plans to sell some of its research-services business, Syngene International, and file for an initial public offering for Syngene within the next two months.
India's Natco Pharma said that it has received Indian regulatory approval to locally sell its generic version of Sovaldi, the hepatitis C treatment that costs $1,000 a day in the U.S., making it the first Indian license holder to do so and allowing it to set a bar on pricing in India and onto emerging markets.
India's Biocon held a busy earnings call on Jan. 23 that highlighted extensive spending on research and keeping several deals rolling, though tight-lipped on a possible license to make Gilead's chronic hepatitis C products and said it will sell a 10% to 15% stake in its research services arm Syngene through an initial public offering.
Biocon intends to build a new facility in Vizag, India, for manufacturing insulin products. It is a turnabout for the Indian company, which went to Malaysia with its first insulin facility, in part, over concerns that India was falling behind in providing dependable infrastructure to the pharma industry.
Kiran Mazumdar-Shaw, founder and managing director of India's Biocon, has had an interesting 36-year journey from brew master to biosimilars maker. She says her vision has always been for Biocon to affect global health in a big way.
As many drugmakers scale down their R&D presences in India, Bristol-Myers Squibb is strengthening its relationship with Syngene, the CRO arm of local giant Biocon.