Biocon Confirms Full Integration of Biocon Biologics Valued at $5.5 Billion

Biocon Limited has announced a landmark strategic move to fully integrate its biologics arm, Biocon Biologics Limited (BBL), under the parent company’s corporate umbrella. The transaction, announced on December 6, 2025 through an official regulatory filing, values the biologics business at approximately USD 5.5 billion and marks a significant step in Biocon’s long-term growth strategy.

Under the terms of the agreement, Biocon will acquire the remaining minority stakes held by investors including Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine LLP through an equity share swap arrangement. The company has fixed the swap ratio at 70.28 Biocon shares for every 100 Biocon Biologics shares, based on a Biocon share price of ₹405.78. This portion of the deal represents the core valuation of Biocon Biologics at USD 5.5 billion.

In addition, Biocon will acquire the residual stake held by Mylan Inc. (operating under Viatris) for a total consideration of USD 815 million, which is structured with USD 400 million in cash and the balance through a share swap of 61.70 Biocon shares for every 100 BBL shares at the same share price.

To support the cash portion of this transaction, Biocon’s board has approved raising up to ₹4,500 crore (roughly USD 500 million) through a Qualified Institutional Placement (QIP), subject to shareholder approval. The capital raised will be primarily allocated to the cash consideration payable to Viatris.

The integration plan has set an expected completion date of March 31, 2026, subject to regulatory approvals and investor clearances. To facilitate a seamless transition, Biocon has constituted a Governance Council chaired by Executive Chairperson Kiran Mazumdar‑Shaw, supported by a Transition and Integration Management Committee led by Biocon Biologics CEO & MD Shreehas Tambe.

This consolidation is the culmination of a strategic review initiated by Biocon’s Strategy Committee in May 2025, which evaluated multiple pathways including an IPO and merger options. The board determined that complete integration provides the most efficient route to unlock shareholder value while simplifying the corporate structure and strengthening global competitiveness.

By bringing the biologics and biosimilars operations fully under one roof, Biocon aims to better leverage its combined research, development, and global commercial footprint. The move positions the company to serve global markets more aggressively in key therapeutic areas such as diabetes care, oncology, and immunology, where biologics and biosimilars play a growing role.

Strategic Outlook

Biocon’s full ownership of Biocon Biologics significantly enhances its long‑term growth trajectory and prepares the company to capitalize on global demand for biosimilars and complex biologics. This move is expected to streamline organizational decision‑making and sharpen competitive differentiation across key markets, potentially unlocking greater value for investors and stakeholders worldwide.