Biotechnology major Biocon Ltd announced a landmark restructuring move to fully integrate its biologics arm, Biocon Biologics Limited, into the parent company. The deal, valued at USD 5.5 billion, will consolidate Biocon’s position as a global biopharmaceutical leader and streamline its biosimilars business.
In a regulatory filing, Biocon said it will acquire the remaining stake in Biocon Biologics from Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP through a share swap arrangement. The swap ratio has been fixed at 70.28 Biocon shares for every 100 Biocon Biologics shares, based on a share price of ₹405.78 per Biocon share.
Additionally, Biocon will purchase the residual stake held by Mylan Inc (Viatris) for a total consideration of USD 815 million. Of this, USD 400 million will be paid in cash, while the remaining USD 415 million will be settled through a share swap. The integration is expected to be completed by March 31, 2026, subject to regulatory approvals.
To ensure a smooth transition, Biocon is constituting a Governance Council chaired by Kiran Mazumdar-Shaw, the company’s Executive Chairperson. A Transition and Integration Management Committee, led by Biocon Biologics CEO and MD Shreehas Tambe, will oversee operational alignment and strategic execution.
The merger is seen as a pivotal step in Biocon’s long-term strategy to strengthen its global footprint in biosimilars and generics. Analysts note that consolidating Biocon Biologics under the parent company will simplify corporate structure, improve capital allocation, and enhance shareholder value.
