Biocon to fully integrate Biocon Biologics as wholly owned subsidiary

Biocon to merge Biocon Biologics into a wholly owned unit via $6.3B deals, raising ₹4,500cr; full integration targeted by Mar 2026 under Mazumdar-Shaw’s oversight

Biocon Limited has announced plans to fully integrate its biosimilars arm, Biocon Biologics Limited, making it a wholly owned subsidiary. The move, subject to regulatory and shareholder approvals, is being positioned as a strategic milestone in Biocon’s evolution.

A Governance Council chaired by Biocon founder Kiran Mazumdar‑Shaw and an integration committee led by Shreehas Tambe will oversee the transition. The company’s Strategy Committee, after weighing options such as an IPO, concluded that acquiring minority stakes through a merger is the most value‑accretive path forward.

Under the deal, Biocon will acquire remaining shares in Biocon Biologics held by Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP. The transaction will be executed via a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares, valuing the biosimilars unit at approximately $5.5 billion.

Additionally, Biocon will purchase the residual stake owned by Mylan Inc (Viatris) for $815 million. This will involve a $400 million cash payment and a $415 million share swap at a ratio of 61.70 Biocon shares for every 100 Biocon Biologics shares, based on a reference price of ₹405.78 per Biocon share. The swap ratios were independently validated by EY and approved by Biocon’s board.

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To fund the cash component of the deal, Biocon plans to raise up to ₹4,500 crore (around $500 million) through a Qualified Institutional Placement, pending shareholder approval. The integration is expected to be completed by March 31, 2026.

During the transition, Siddharth Mittal will remain CEO & Managing Director of Biocon Limited, while Shreehas Tambe continues in the same role at Biocon Biologics. Post‑integration, Tambe will lead the combined entity as CEO & MD, with Kedar Upadhye as CFO. Mittal will assume a broader group leadership role.

Mazumdar‑Shaw described the integration as a pivotal step, positioning Biocon among the few global players with scale in both biosimilars and generics. She highlighted the company’s unique portfolio, including biosimilar insulins and generic GLP‑1 peptides for diabetes care.

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