Biocon group has announced a strategic corporate action to fully integrate Biocon Biologics Limited (BBL) as a wholly owned subsidiary into Biocon Limited, subject to applicable approvals.

Biocon Limited is constituting a Governance Council chaired by Dr Kiran Mazumdar-Shaw and a Transition and Integration Management Committee, led by Dr Shreehas Tambe, CEO & MD of Biocon Biologics, 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 BBL with Biocon Limited and making BBL a wholly owned subsidiary of Biocon Limited through the acquisition of minority stakes offers the most efficient and value-accretive path forward.

Under the proposed transaction,

1. Biocon Limited will acquire the remaining stake in BBL from Serum Institute Life Sciences (Serum), Tata Capital Growth Fund II (Tata Capital) and Activ Pine LLP (Activ Pine) through a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares, at a share price of ? 405.78 per Biocon share; valuing BBL at $ 5.5 billion.
2. Further, Biocon will acquire the residual stake held by Mylan Inc. (“Viatris”) for a total consideration of $ 815 million, of which $ 400 million will be payable in cash and $ 415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares at a share price of ? 405.78 per Biocon share.
3. 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 ? 4500 crore ($ 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. As the only company operating globally with both biosimilar insulins and generic versions of complex peptides, including GLP-1s, Biocon is uniquely poised to address the rapidly expanding ‘diabesity’ market.

Mr Siddharth Mittal and Dr Shreehas Tambe will continue in their roles as CEO & Managing Director at Biocon Limited and BBL, respectively, until completion of the integration process.

Post the integration and upon execution of the necessary documentation, receipt of approvals from the Nomination & Remuneration Committee and the Board, Dr Shreehas Tambe will take on the role of CEO & Managing Director and Mr Kedar Upadhye the role of Chief Financial Officer of the combined business. Mr Siddharth Mittal, CEO & MD, Biocon Limited, will transition into a leadership role within the Group.

Commenting on the corporate action, Dr Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Limited, said: “The integration of BBL into Biocon Limited represents the next chapter in our evolution. Strategically, Biocon will be one of the few companies offering both biosimilars and generics at a global scale. As the only company with biosimilar insulins and generic GLP1 peptides, Biocon is uniquely positioned to comprehensively address the needs of patients living with diabetes. Together with our combined oncology and immunology portfolios, this creates a differentiated offering addressing the world’s most pressing healthcare needs. I am also pleased to announce that Dr Shreehas Tambe will lead the Transition and Integration Management Committee and will take over as the CEO & MD of the combined business, subject to requisite approvals. His 28 years of experience with the Biocon Group will be invaluable as we advance our mission to make lifesaving medicines affordable and accessible to patients worldwide.”

This integration enables Biocon to harness the combined strengths of its generics and biosimilars businesses across 120+ countries. Biocon Biologics ranks among the Top 5 global biosimilar players by revenue, with 10 commercialized products across key markets, while Biocon’s generics business offers over 90 products.