Biocon Group’s board is setting up a committee to evaluate strategic restructuring options, including a merger of its biosimilars arm Biocon Biologics Ltd with its flagship Biocon Ltd.
The options would be evaluated taking into consideration matters relating to legal and tax aspects and subject to all approvals, including regulatory, board and shareholders, the company said in a release dated 8 May.
The company had said in February that it would likely list its biosimilars business on the stock exchanges by March 2026.
“…given the market volatility that we are seeing on the IPO front, the board was of the opinion that we should look at other strategic options which also be includes evaluating a merger,” Kiran Mazumdar-Shaw, chairperson, Biocon Group, told investors in an earnings call on Friday.
“So at this point in time the board has constituted a committee, we will evaluate all strategic options and then get back to you in a few months with what the committee recommends to the board,” she added.
Biocon’s board also approved raising up to ₹4,500 crore by way of issue of securities via qualified institutional placements, rights issue or other permissible routes, the company said. The funds will be used for repaying borrowings by the company or its subsidiaries, fulfilling other debt obligations, as well as investments in subsidiaries.
Biocon Biologics acquired US drugmaker Viatris’ global biosimilars business in 2022 to expand its global footprint. The company’s CEO and managing director Shreehas Tambe had previously said it would consider an IPO after it completed the integration of the Viatris portfolio.
“On a full-year basis, the company has recorded a strong 15% growth in FY25 and we have successfully consolidated our business worldwide,” Tambe said in the release. “Having built a strong foundation, we are well-positioned to launch 5 new products in the next 12-18 months and expand patient access.”
Biocon is a global biopharmaceuticals company which has developed and commercialised novel biologics, biosimilars and complex small molecule active pharma ingredients (APIs) in India and several key global markets, as well as generic formulations in the US, Europe and emerging markets. The company is focused on complex therapies in chronic segments like diabetes, cancer and autoimmune.
Biocon Biologics’ four biosimilars recorded sales of $200 million each in FY25. The company also launched its fifth biosimilar product, Yesinket (Ustekinumab), in the US in FY25.
