Biocon to merge Biocon Biologics with itself; to acquire stake held by Serum, Mylan
The share-swap ratio has been fixed at 70.28 Biocon shares for every 100 Biocon Biologics shares, at a share price of Rs 405.78 per Biocon share, it added.
Biotechnology major Biocon will fully integrate Biocon Biologics with itself in a deal valuing the biologics unit at $5.5 billion.
As part of the transaction, Biocon will acquire the remaining stake in Biocon Biologics Ltd from Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine LLP through a share swap, valuing Biocon Biologics at $5.5 billion, the Bengaluru-based company said in a regulatory filing.
The share-swap ratio has been fixed at 70.28 Biocon shares for every 100 Biocon Biologics shares, at a share price of Rs 405.78 per Biocon share, it added.
Further, Biocon will acquire the residual stake held by Mylan Inc (Viatris) for a total consideration of $815 million, of which $400 million will be payable in cash and $415 million through a share swap, it added.
Biocon is constituting a governance council chaired by Kiran Mazumdar-Shaw and a transition and integration management committee, led by Biocon Biologics CEO and MD Shreehas Tambe, to ensure a seamless integration.
The company said its board has also approved raising to Rs 4,500 crore in additional capital through a qualified institutional placement, subject to shareholder approval.
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The proceeds of the QIP will be primarily utilised to pay the cash component to Viatris.
"The integration of Biocon Biologics into Biocon Ltd 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," Biocon Executive Chairperson Kiran Mazumdar-Shaw said.
As the only company with biosimilar insulins and generic GLP-1 peptides, Biocon is uniquely positioned to address the needs of patients living with diabetes comprehensively, she added.
"Together with our combined oncology and immunology portfolios, this creates a differentiated offering addressing the world's most pressing healthcare needs," Mazumdar-Shaw stated.
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, he said.
This integration enables Biocon to harness the combined strengths of its generics and biosimilars businesses across countries, the company stated.
Biocon Biologics ranks among the top five global biosimilar players by revenue, with 10 commercialised products across key markets, while Biocon's generics business offers over 90 products.
The integration process is expected to be completed by March 31, 2026.
The integration marks a pivotal step in combining the businesses to leverage the global commercial infrastructure, simplify the corporate structure, and strengthen Biocon's global position to lead in diabetes, oncology, and immunology – therapeutic areas that together account for nearly 40 per cent 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, it said.
Post the integration and upon execution of the necessary documentation, receipt of approvals from the Nomination & Remuneration Committee and the Board, Tambe will take on the role of the CEO & Managing Director, and Kedar Upadhye will take on the role of Chief Financial Officer of the combined business.
Siddharth Mittal, CEO & Managing Director, Biocon Ltd, will transition into a leadership role within the Group, the company stated.