Biocon arm to buy out CIMAB's 49 per cent stake in Biocon Biopharma

Biocon SA, the wholly owned subsidiary of Biocon Ltd, will acquire the 49 per cent stake held by Cuban company CIMAB SA in Biocon Biopharmaceuticals Pvt Ltd (BBPL), the company said in a stock exchange filing.

Biocon Biopharmaceuticals is engaged in the manufacture of products based on the monoclonal antibodies at their facility in Bangalore.

Biocon, however, did not disclose financial details of the transaction.

Both the companies, however, will continue their partnership in research, development and commercialisation of novel biopharmaceutical products. CIMAB SA has a similar joint venture agreement in China.

Biocon recently signed an MoU with Malaysia's Biotechnology Corporation to explore collaboration and potential investment in Malaysia's biotechnology industry.

The company was also in talks with Mumbai-based contract research firm (CRO) Siro Clinpharm Pvt Ltd, although further developments on the acquisition are not known.

Siro Clinpharm is backed by two private equity investors Kotak Private Equity and the 3i Group, which jointly control close to 70 per cent stake in the company.

Biocon, meanwhile, reported a three-fold increase in its fiscal third quarter (October-December 2009-10) revenue at Rs80.8 crore over the same period a year ago. Total income in the quarter rose to Rs641.5 crore against Rs452.4 crore in the corresponding period last year.