Biocon to Fully Integrate Biocon Biologics in $5.5 Billion Share-Swap Deal
Indian biopharmaceutical major Biocon announced on Saturday that it will fully integrate its biosimilar arm, Biocon Biologics, making it a wholly owned subsidiary. The company will acquire remaining stakes 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, valuing the biosimilars unit at $5.5 billion. The decision comes after evaluating multiple options, including an IPO and merger, with the company concluding that full integration is the most efficient path forward.
Following the consolidation, Shreehas Tambe will serve as CEO and Managing Director of the combined entity, while Kedar Upadhye will take over as CFO. Biocon’s current CEO, Siddharth Mittal, will transition into a group leadership role. The company also plans to purchase the residual stake held by Viatris for $815 million, with $400 million in cash and the remaining $415 million via a share swap. To support this, Biocon has approved raising up to ₹45 billion ($500 million) through a Qualified Institutional Placement.
The integration process is expected to be completed by March 31. Bengaluru-based Biocon has been working toward strengthening its biosimilars portfolio, including the integration of the acquired Viatris biosimilars business and refinancing debt. The company aims for a double-digit market share in the U.S. for upcoming biosimilar launches and continues to explore future listing plans for its biosimilars segment by March 2026.
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