Biocon to make Biocon Biologics a wholly owned subsidiary in $5.5 bn deal

Indian biopharmaceutical company Biocon said on Saturday it would fully integrate its biosimilar unit Biocon Biologics as a wholly owned subsidiary.

Biocon said in a statement it will acquire the remaining stakes in Biocon Biologics from Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine LLP through a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares, at a price of ₹405.78 ($4.51) per Biocon share. The deal values Biocon Biologics at $5.5 billion.

Biocon Biologics Chief Executive Shreehas Tambe will become CEO and managing director of the combined entity post-integration, and Kedar Upadhye will be the chief financial officer. Biocon CEO Siddharth Mittal will transition to a group leadership role.

The integration is expected to be completed by March 31 next year.

Tambe told Reuters in a March interview Biocon might list its key biosimilars business by March 2026 and aimed for a double-digit share in its core US market for its new launches.

Biosimilars are similar and relatively affordable versions of high-priced and complex biologics drugs used to treat illnesses such as cancer and autoimmune diseases.

The company, which had earlier been pushing its IPO plans, has been waiting to complete the integration of its acquired biosimilars firm Viatris and refinance debt.

Biocon in its Saturday announcement also said it will acquire the residual stake held by Viatris for $815 million, out of which $400 million will be payable in cash and $415 million in a share swap.

The Bengaluru-based company also approved raising additional capital of up to ₹4,500 crore ($500 million) through a Qualified Institutional Placement (QIP), the proceeds of which will go towards the cash component payable to Viatris.