Biocon to make Biocon Biologics a wholly owned arm

Bengaluru: Biocon Limited, a global biopharmaceuticals company, has announced a strategic corporate action to fully integrate Biocon Biologics Limited as a wholly owned subsidiary into Biocon Limited, subject to applicable approvals.

Biocon Limited is constituting a Governance Council chaired by Kiran Mazumdar-Shaw and a Transition and Integration Management Committee, led by Shreehas Tambe, Chief Executive Officer and Managing Director of Biocon Biologics Limited, to ensure a seamless integration.

The Strategy Committee, constituted in May 2025, undertook a comprehensive evaluation of multiple strategic options for Biocon Biologics Limited, including an IPO and a merger with Biocon Limited. After careful consideration of key parameters such as strategic alignment, sectoral dynamics, shareholder value creation, and other relevant data, the Committee concluded that full integration of Biocon Biologics Limited with Biocon Limited and making Biocon Biologics Limited a wholly owned subsidiary of Biocon Limited through the acquisition of minority stakes.

Under the proposed transaction, Biocon Limited 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, at a share price of INR 405.78 per Biocon share; valuing Biocon Biologics Limited at USD 5.5 billion.

Further, Biocon will acquire the residual stake held by Mylan Inc. (“Viatris”) for a total consideration of USD 815 million, of which USD 400 million will be payable in cash and USD 415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares at a share price of INR 405.78 per Biocon share.

The swap ratios have been approved by the Board based on independent valuations by EY. The Board has also approved raising additional capital, of up to Rs 4500 crore (USD 500 million) through Qualified Institutional Placement (QIP), subject to shareholder approval. The proceeds of the QIP will be largely utilised towards the cash component payable to Viatris. The integration process is expected to be completed no later than March 31, 2026.

This integration marks a pivotal step in combining the businesses to leverage the global commercial infrastructure, simplifying the corporate structure and strengthening Biocon’s global position to lead in diabetes, oncology, and immunology — therapeutic areas that together account for nearly 40% of global pharmaceutical revenues.