Indian biopharmaceutical company Biocon announced on Saturday that it will fully integrate its biosimilar unit, Biocon Biologics, as a wholly owned subsidiary. This move consolidates Biocon’s biosimilars and generics businesses under one roof.
Biocon stated that 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, priced at 405.78 Indian rupees ($4.51) per Biocon share. The deal values Biocon Biologics at $5.5 billion.
Biocon Biologics Chief Executive Shreehas Tambe will serve as the CEO and managing director of the combined entity, while Kedar Upadhye will assume the role of chief financial officer, according to a press release from Biocon. Biocon CEO Siddharth Mittal will transition into a group leadership role.
The integration is expected to be completed by March 31.
The Bengaluru-based Biocon reviewed several options for Biocon Biologics, including an IPO and a merger, before deciding that integration through the acquisition of minority stakes “offers the most efficient and value-accretive path forward.”
Tambe mentioned to Reuters in January that Biocon might list its key biosimilars business by March 2026 and aims for a double-digit share in its core U.S. 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.
Biocon, which had previously been advancing its IPO plans, has been waiting to complete the integration of its acquired biosimilars firm Viatris and refinance debt.
The company also announced on Saturday that it would buy the remaining stake held by Viatris for $815 million, with $400 million payable in cash and $415 million through a share swap.
Additionally, the company approved raising additional capital of up to 45 billion Indian rupees ($500 million) through a Qualified Institutional Placement, with proceeds directed towards the cash component payable to Viatris.
