Biocon Ltd announced that it will fully integrate Biocon Biologics Ltd as a wholly owned subsidiary in a deal valuing the biologics arm at $5.5 billion. The company will buy the remaining shares held by 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, priced at ₹405.78 each. It will also acquire Viatris’ (Mylan Inc.) residual stake for $815 million, with $400 million paid in cash and the rest via a share swap of 61.70 Biocon shares per 100 Biocon Biologics shares.
The merger, expected to close by 31 March 2026, follows a strategic review launched in May 2025. Biocon said full integration provides the most value-accretive path, avoiding the suppressed valuations that a public listing might face. To fund the cash payout to Viatris, the board has approved raising up to ₹4,500 crore through a QIP.
The merger is expected to strengthen Biocon’s balance sheet, further reduce its debt-to-Ebitda ratio, and improve cash flows. Leadership changes will follow integration, with Shreehas Tambe becoming CEO and MD of the combined entity and Kedar Upadhye taking over as CFO.
