Biocon to Merge Biologics Unit in $5.5 Billion Mega Deal

December 6, 2025

Bengaluru: Biopharmaceuticals company Biocon on Saturday announced plans to fully integrate its biosimilar unit, Biocon Biologics, as a wholly owned subsidiary in a $5.5 billion deal.

The company 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 of 70.28 Biocon shares for every 100 Biocon Biologics shares, valuing Biocon Biologics at $5.5 billion.

Strategic Expansion and Leadership Changes

Kiran Mazumdar-Shaw, Executive Chairperson of Biocon, described the integration as “the next chapter in our evolution.” She highlighted that Biocon will be among the few companies globally offering both biosimilars and generics, with biosimilar insulins and generic GLP1 peptides, alongside combined oncology and immunology portfolios.

Mazumdar-Shaw also announced Shreehas Tambe as the new CEO and Managing Director of the combined business, citing his 28 years of experience with Biocon as invaluable for advancing the company’s mission to make lifesaving medicines affordable and accessible worldwide.

Deal Details and Financing Plans

The integration is expected to be completed by March 31, 2026. Biocon will also acquire the residual stake held by Mylan (Viatris) for $815 million—$400 million in cash and $415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares at Rs 405.78 per share.

Additionally, Biocon approved raising up to Rs 4,500 crore (USD 500 million) via a Qualified Institutional Placement (QIP), primarily to fund the cash component payable to Viatris.