Biocon Limited announced a strategic move to fully integrate Biocon Biologics Limited (BBL) as a wholly-owned subsidiary, pending approvals. This aims to leverage global commercial infrastructure, simplify the corporate structure and strengthen Biocon’s position in diabetes, oncology, and immunology. The integration is expected to be completed by March 31, 2026. The company will raise up to INR 4500 crore (USD 500 million) through Qualified Institutional Placement (QIP).
Strategic Integration of Biocon Biologics
Biocon Limited (BSE: 532523, NSE: BIOCON) will fully integrate Biocon Biologics Limited (BBL) as a wholly-owned subsidiary. This strategic corporate action is subject to applicable approvals and aims to create a unified global biopharmaceutical leader.
Transaction Details
Biocon will acquire the remaining stake in Biocon Biologics Limited 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 Biocon Biologics at USD 5.5 billion.
Biocon will also acquire the residual stake held by Mylan Inc. (“Viatris”) for a total consideration of USD 815 million, including USD 400 million in cash and USD 415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares.
Capital Raise and Utilization
The Board has approved raising additional capital of up to INR 4500 crore (USD 500 million) through a Qualified Institutional Placement (QIP). Proceeds will be largely used towards the cash component payable to Viatris.
Integration Timeline and Objectives
The integration is expected to be completed no later than March 31, 2026. This move aims to leverage the global commercial infrastructure, simplify the corporate structure, and strengthen Biocon’s global position in key therapeutic areas like diabetes, oncology, and immunology.
Leadership Transition
Shreehas Tambe will take on the role of CEO & Managing Director of the combined business, and Kedar Upadhye will become the Chief Financial Officer upon completion of the integration, receipt of approvals and execution of necessary documents.
Comments from Leadership
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Limited, stated: “The integration of Biocon Biologics Limited into Biocon Limited represents the next chapter in our evolution…we advance our mission to make lifesaving medicines affordable and accessible to patients worldwide.”
Source: BSE