Bengaluru: Biocon Limited (BSE: 532523, NSE: BIOCON), an innovation-led global biopharmaceutical company, has announced a landmark corporate action to fully integrate Biocon Biologics Limited (BBL) as a wholly owned subsidiary, subject to regulatory approvals.
The move follows a comprehensive evaluation by Biocon’s Strategy Committee, which considered multiple strategic options including an IPO and merger. The Committee concluded that full integration offers the most efficient and value-accretive path forward, aligning with Biocon’s long-term vision of strengthening its global leadership in biosimilars and generics.
Transaction Details
- Stake Acquisition from Investors: Biocon will acquire remaining stakes in BBL 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 BBL shares, valuing BBL at USD 5.5 billion.
- Stake Acquisition from Viatris: Biocon will acquire Viatris’ residual stake for USD 815 million, comprising USD 400 million in cash and USD 415 million via share swap (61.70 Biocon shares for every 100 BBL shares).
- Valuation: Swap ratios were independently validated by EY.
- Capital Raising: The Board approved raising up to INR 4,500 crore (USD 500 million) through Qualified Institutional Placement (QIP), primarily to fund the cash component payable to Viatris.
Leadership & Governance
- A Governance Council chaired by Kiran Mazumdar-Shaw and a Transition & Integration Management Committee led by Shreehas Tambe will oversee the process.
- Siddharth Mittal (CEO & MD, Biocon Limited) and Shreehas Tambe (CEO & MD, Biocon Biologics) will continue in their roles until integration completion.
- Post-integration, Shreehas Tambe will assume the role of CEO & MD of the combined entity, while Kedar Upadhye will serve as CFO. Siddharth Mittal will transition into a leadership role within the Group.
Strategic Impact
The integration, expected to be completed by March 31, 2026, will:
- Simplify Biocon’s corporate structure.
- Strengthen its global position in diabetes, oncology, and immunology, which together represent nearly 40% of global pharmaceutical revenues.
- Enhance Biocon’s ability to address the growing ‘diabesity’ market, as the only global company offering both biosimilar insulins and generic GLP-1 peptides.
- Expand reach across 120+ countries, leveraging Biocon Biologics’ position among the Top 5 global biosimilar players with 10 commercialized products, alongside Biocon’s generics portfolio of over 90 products.
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. Together with our combined oncology and immunology portfolios, this creates a differentiated offering addressing the world’s most pressing healthcare needs.”
