Biocon, an Indian biopharmaceutical company, announced on Saturday its plans to integrate its biosimilar unit, Biocon Biologics, into a wholly owned subsidiary. This move will consolidate Biocon’s biosimilars and generics operations under one entity.
Biocon will acquire the remaining shares of Biocon Biologics from Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP via a share exchange of 70.28 Biocon shares for every 100 Biocon Biologics shares, valuing each Biocon share at 405.78 Indian rupees ($4.51). This transaction values Biocon Biologics at $5.5 billion.
Shreehas Tambe, CEO of Biocon Biologics, will become the CEO and managing director of the merged entity, with Kedar Upadhye taking on the role of chief financial officer, as stated by Biocon in a press release. Siddharth Mittal, the current CEO of Biocon, will move to a group leadership position.
The integration is anticipated to conclude by March 31.
Headquartered in Bengaluru, Biocon evaluated various options for Biocon Biologics, such as an IPO and a merger, before determining that acquiring minority stakes is “the most efficient and value-enhancing strategy.”
In January, Tambe indicated to Reuters that Biocon might consider listing its primary biosimilars business by March 2026, aiming for a significant market share in the U.S. with new product launches.
Biosimilars are cost-effective alternatives to expensive and intricate biologics drugs used for treating conditions like cancer and autoimmune diseases.
Biocon had previously been advancing its IPO plans, awaiting the completion of its integration with Viatris, a biosimilars firm it acquired, and the refinancing of debt.
On Saturday, the company also announced it would purchase the remaining stake held by Viatris for $815 million, with $400 million to be paid in cash and $415 million through a share exchange.
The company approved raising up to 45 billion Indian rupees ($500 million) through a Qualified Institutional Placement, with funds directed towards the cash payment to Viatris.
