Biocon to list services unit in 18 months

Kuala Lumpur: Biocon Ltd, India’s largest listed biotechnology firm, plans to list its research services unit Syngene within the next 18 months or so, chairwoman Kiran Mazumdar-Shaw said.

The company, whose flagship brands include Insugen for the treatment of diabetes and Abraxane for cancer, is focusing on posting $1 billion revenue in three to five years, Shaw said on Tuesday in an interview with Reuters.

“We expect to unlock a lot of value from this particular business,” Mazumdar-Shaw said. “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.

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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 US 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 market.

Bangalore-based Biocon, which the market values at about $1.45 billion, was set up by Mazumdar-Shaw in her garage in 1978. The company now delivers products in about 75 countries.

Reuters