Biocon, the Rs 1,000 crore (Rs 10 billion) Bangalore-based biotechnology major, is preparing for an overseas listing by the late next year to raise around Rs 300 crore (Rs 3 billion).
According to market information, Biocon is seeking to time this listing, which would most probably be in the US, with the maturing of its R&D programme. The firm went public in India in March 2004.
This maturing will come when it will be seen to have made substantial progress in the two theraputic areas where it is seeking to come up with a discovery products - cancer and diabetes.
Biocon along with its two subsidiary companies, Syngene International and Clinigene International, forms an integrated biotechnology enterprise, focussing on biopharmaceuticals, enzymes, custom research and clinical research.
It started off two decades ago by supplying generic ingredients. Today it delivers products and solutions to partners and customers across the globe from the USFDA approved facilities. Lately, it has put in place international joint ventures and agency arrangements with firms such as Bristol Myers Squibb, Bentley and Bayer.
Kiran Mazumdar Shaw, CMD, Biocon, described this buzz on the street as "fictitious and speculative". However, senior company officials confirmed that "overseas listing may come towards the end of the next year."
"We are working on various proof-of-concept initiatives for our products and the timing of our overseas listing is expected to be when we will be able to commercialise them," the official detailed.
Biocon for FY07 reported a net profit of Rs 200 crore (Rs 2 billion), and has a debt of nearly Rs 190 crore (Rs 1.9 billion). Almost 85 per cent of its revenues come from biopharmaceuticals and enzymes and the rest from research services and licensed manufacturing.
