Biocon to merge Biocon Biologics in $5.5 billion deal

Biocon will acquire the residual stake held by Mylan (Viatris) for a total consideration of US$ 815 million

Biocon Limited, an innovation-led global biopharmaceuticals company, announced a strategic corporate action to fully integrate Biocon Biologics Limited (BBL) as a wholly owned subsidiary into Biocon Limited, subject to applicable approvals.

Under the proposed transaction, Biocon Limited will acquire the remaining stake in Biocon Biologics Limited from Serum Institute Life Sciences (Serum), Tata Capital Growth Fund II (Tata Capital) and Activ Pine LLP (Activ Pine) through a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares, at a share price of Rs. 405.78 per Biocon share; valuing Biocon Biologics Limited at US$ 5.5 billion.

Further, Biocon will acquire the residual stake held by Mylan Inc. (Viatris) for a total consideration of US$ 815 million, of which US$ 400 million will be payable in cash and $ 415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares at a share price of Rs. 405.78 per Biocon share.

The swap ratios have been approved by the Board based on independent valuations by EY.

The Board has also approved raising additional capital, of up to Rs. 4500 crore (US$ 500 million) through Qualified Institutional Placement (QIP), subject to shareholder approval. The proceeds of the QIP will be largely utilised towards the cash component payable to Viatris.

The integration process is expected to be completed no later than March 31, 2026.

This integration marks a pivotal step in combining the businesses to leverage the global commercial infrastructure, simplifying the corporate structure and strengthening Biocon’s global position to lead in diabetes, oncology, and immunology — therapeutic areas that together account for nearly 40% of global pharmaceutical revenues. As the only company operating globally with both biosimilar insulins and generic versions of complex peptides, including GLP-1s, Biocon is uniquely poised to address the rapidly expanding ‘diabesity’ market.

Commenting on the corporate action, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Limited, said: “The integration of Biocon Biologics Limited into Biocon Limited represents the next chapter in our evolution. Strategically, Biocon will be one of the few companies offering both biosimilars and generics at a global scale. As the only company with biosimilar insulins and generic GLP1 peptides, Biocon is uniquely positioned to comprehensively address the needs of patients living with diabetes. Together with our combined oncology and immunology portfolios, this creates a differentiated offering addressing the world’s most pressing healthcare needs. I am also pleased to announce that Shreehas Tambe will lead the Transition and Integration Management Committee and will take over as the CEO & Managing Director of the combined business, subject to requisite approvals.”