Biocon’s $5.5 Billion Buyout Unites Biosimilars Under Kiran Mazumdar-Shaw’s Leadership
Indian Tycoon Kiran Mazumdar-Shaw's Biocon Buyout Deal Values Biologics Unit At $5.5 Billion
Integrating Biocon Biologics will simplify its corporate structure and strengthen Bengalaru, India-based Biocon's position in diabetes, oncology and immunology medications.
Biocon is set to fully acquire Biocon Biologics in a deal worth $5.5 billion. The move will consolidate the company’s biosimilars and generics drug businesses under one roof. The transaction, expected to close in March, remains subject to regulatory approvals.
Kiran Mazumdar-Shaw, Biocon’s executive chairwoman, described the integration as a major step in the company’s growth. The deal follows Biocon’s earlier $3.3 billion purchase of Viatris’ biosimilars unit in 2022.
Biocon will acquire the remaining shares of Biocon Biologics from three key investors: Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP. The purchase will be made through a share swap, with 70.28 Biocon shares issued for every 100 Biocon Biologics shares. Each Biocon share is priced at 405.78 Indian rupees ($4.51), setting the total valuation at $5.5 billion.
The company will also buy Viatris’ stake in Biocon Biologics for $815 million. This payment includes $400 million in cash and $415 million in Biocon shares. To fund the cash portion, Biocon plans to raise up to 45 billion rupees ($500 million) by selling shares to institutional investors.
Mazumdar-Shaw, who founded Biocon in 1978, has built it into a leading biopharmaceutical firm. With an estimated net worth of $3.6 billion, she ranks among India’s wealthiest individuals. The integration aims to streamline Biocon’s structure and reinforce its focus on diabetes, oncology, and immunology treatments.
The deal will bring Biocon Biologics entirely under Biocon’s control. It follows years of expansion, including the 2022 acquisition of Viatris’ biosimilars division. Once completed, the move is expected to solidify Biocon’s position in the global generics and biosimilars market.
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