Biocon to sell enzymes unit to Danish firm

Biocon, a Bangalore-based biotech major, is planning to sell its enzymes business to Novozymes, a Denmark-based global enzymes company, for an undisclosed sum.According to sources, the company is planning to hive off its enzymes business into a separate entity and then sell it to the Danish company.This way, Biocon is planning to exit the enzymes business completely. The Bangalore-based company, however, did not respond to queries in this regard.

According to an investment banker, Biocon may be valued 1.5 to 2 times its enzymes revenues, which were around Rs 95 crore in 2006-07. This can work out to around Rs 150 crore.

The company is taking this hard decision as revenues from the enzymes business have been declining as a percentage of the total revenue for several years - from 20.9 per cent of the total sale in 2004 to 11.5 per cent in 2007. With the growing importance of statins and biopharma, enzymes have become a secondary business.

Read more in The Business Standard article.