Biocon Ltd. has declared that it will completely integrate Biocon Biologics Ltd., its biologics unit, in a merger transaction valued at $5.5 billion, in a significant strategic step intended to unleash long-term value. This move will consolidate operations and improve the group’s standing in the international biosimilars market by making Biocon Biologics a fully owned subsidiary of the parent company.
Biocon will purchase the remaining shares held by Activ Pine LLP, Tata Capital Growth Fund II, Serum Institute Life Sciences, and Mylan Inc. (Viatris) in order to finalize the integration. The transfers will be made in part by cash consideration and in part by share exchanges.
The business presented a two-step plan for the merger.
For every 100 Biocon Biologics shares, Biocon will issue 70.28 Biocon shares, valued at ₹405.78, to current shareholders who are not Viatris.
Mylan’s (Viatris) remaining shareholding will be acquired for a total of $815 million, in which there will be a cash payment of $400 million and the remaining amount will be resolved through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares.
Biocon anticipates that the integration will be finished by March 31, 2026. The action comes after the company’s strategy committee, which was established in May 2025, conducted an internal review to determine whether a merger or a separate
public listing would be more beneficial. Following a thorough evaluation, the committee came to the conclusion that full integration would yield the highest value and improve operational alignment, according to an official statement from the company.
The Biocon board has authorized the option to raise a maximum of ₹4,500 crore via approved institutions placement (QIP) in order to support this merger-linked compensation, subject to shareholder approval. The Viatris settlement will receive a significant amount of this new funding.
Executive Chairperson Kiran Mazumdar Shaw emphasized to the media that the combination makes it possible for actual value to emerge, something that an IPO may not have been capable of doing at this time. She pointed out that Biocon’s valuation had been impacted by market worries over acquisition-related leverage, which made the listing path less appealing to shareholders.
Rather, combining Biocon Biologics will eliminate the holding-company discount that previously concealed underlying strength, help consolidate financials, and represent actual performance.
Since acquiring Viatris’ global biosimilars portfolio for $3.3 billion in 2022, Biocon Biologics has experienced substantial growth. Although that deal increased the company’s size, it also resulted in acquisition-related debt of almost $1.2 billion. It is projected that the combination will rise Biocon’s financial leverage. The company emphasized how its debt-to-EBITDA ratio has steadily decreased, going from 4.3x in 2020 to 2.5x in 2025, and it is anticipated to continue declining after integration. Biocon anticipates making confident investments in growing product pipelines, technological capabilities, and worldwide market reach with less debt strain and improved cash flow generation.
After obtaining money in June 2025, the company also recently paid down structured debt commitments to Goldman Sachs, Kotak Mahindra Bank, and commercial paper borrowings.
Shreehas Tambe, Biocon’s MD and CEO, will assume leadership of the merged company as part of the transfer. As Chief Financial Officer, Kedar Upadhye will take over.
Siddharth Mittal, the current CEO of Biocon, will continue to serve during the integration phase before assuming a leadership position within the larger organization. An integration committee led by Tambe and a governing council chaired by Kiran Mazumdar Shaw have been constituted to guarantee efficient execution.
Biocon’s decision to merge Biocon Biologics into a wholly owned subsidiary marks a strategic step toward long-term value creation, financial stability, and operational consolidation. By simplifying its corporate structure, reducing acquisition-linked debt, and unlocking the true market value of its biologics business, the company is positioning itself for stronger global competitiveness. With fresh capital infusion, leadership alignment, and improved balance sheet strength, Biocon is now better equipped to scale innovation, expand product pipelines, and accelerate growth in the biosimilars market. Overall, this integration lays a robust foundation for future growth and the improvement of shareholder value.