Biotechnology major Biocon net profit declines 11 percent to Rs 168 crore in Q2

''We have delivered a resilient performance in H1FY23, with all segments delivering strong revenue growth. We expect to consolidate on this performance in the second half of FY23. Enhanced capacities and new launches will drive growth for our API and generic formulations business, while continued business momentum should help Syngene achieve its guidance for the full year,'' she added.

Mazumdar-Shaw said the consolidation of Viatris' global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the biosimilars business in the second half of the current fiscal.

''We have secured necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly,'' she added.

The company said the transaction to acquire Viatris' global biosimilars business is expected to conclude soon.

''On closing, Biocon Biologics will issue Compulsorily Convertible Preference Shares (CCPS) in the company valued at USD 1 billion and make an upfront cash payment of USD 2 billion to Viatris,'' it said.

To fund the cash component of the deal, Biocon Biologics has secured USD 1.2 billion of debt, it added.

The balance will be funded through an equity infusion of USD 650 million by Biocon and USD 150 million by Serum, the company said.

''Biocon will fund USD 230 million from existing reserves and USD 420 million through mezzanine financing. Biocon is in the process of securing investments to retire the mezzanine financing, post-deal closure,'' it added.

Biocon's stake in Biocon Biologics will be 68 percent post the conclusion of the Viatris and Serum transactions, the company noted.

The strategic alliance with Serum Institute Life Sciences (SILS) for vaccines is on track for closure by the end of the third quarter, it added.

Serum and Biocon Biologics, a unit of Biocon, had entered into a collaboration in September last year.