Biocon divests enzymes businees to Novozymes for 115 M $

Bangalore, July 18 (UNI) In a strategic decision biotech major Biocon today announced divesting of its three decade old Enzyme Business vertical to Novozymes A/s for US Dollar 115 million and concentrate on its core business of biopharmaceuticals.

In a release here the company said it had entered into a definitive agreement with Novozymes for divest its enzymes division which included a broad range of industrial enzymes, food additives and process aids.

The transaction, subject to shareholder and regulatory approvals, was expected to be completed by the end of the third quarter of the calender year 2007, the release.

Henceforth Biocon would concentrate its activities on its bio-pharma business verticals that included APIs, biologicals and proprietary molecules both commercialised and under development.

Biocon Chairman and Managing Director Kiran Mazumdar-Shaw commenting on the divestment said ''Over the past decade we have clearly recognised the high growth trajectory of our bio-pharma business verticals and have progressively invested to build proprietary know-how and global scale. We believe that this is the right time to divest our enzymes business and focus on unleashing the full potential of our Bio-pharma businesses''.

She said Novozymes as the recognised world leader in enzymes would be in a strong position to leverage Biocon's existing enzymes portfolio built over a span of nearly three decades.

Steen Riisgaard, CEO of Novozymes said ''The acquisition of Biocon's enzyme business provides an important step for Novozymes in strengthening our position in the Indian market, which we believe has an attractive growth potential''.

UNI