Biocon Biologics Announces Debt Fundraising Strategy for Viatris Payout

Friday, 12 July 2024, 02:06
Biocon Biologics is planning to secure Rs 4,500 crore in debt financing with the support of HSBC and MUFG to fulfill a $175 million Aflibercept option. Previous funding from Kotak and Edelweiss, along with Crisil's forecast of Rs 4,800 crore debt by FY26, indicates a strategic move. Despite grappling with a $1.2 billion debt load, Biocon's net profit margin remains at 7% due to elevated interest costs. Notably, revenue experienced a significant uptick to 57% in FY24, with ownership currently standing at 70% amidst a post-Viatris transition that has positively impacted the market.
Economictimes
Biocon Biologics Announces Debt Fundraising Strategy for Viatris Payout

Biocon Biologics Debt Financing Strategy

Biocon Biologics is set to secure Rs 4,500 crore in debt financing to support its Viatris Payout, with assistance from HSBC and MUFG.

Previous Funding and Debt Forecast

Notably, Kotak and Edelweiss were involved in previous funding rounds, while Crisil predicts a debt level of Rs 4,800 crore by FY26.

Financial Performance Overview

  • Profit Margin: Biocon's net profit margin currently stands at 7% primarily due to high-interest costs.
  • Revenue Growth: The company witnessed a substantial revenue growth of 57% in FY24.
  • Ownership: Biocon Biologics' ownership share is currently at 70%.

Overall, the market has positively responded to the transition post the Viatris deal, reflecting improving conditions.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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