Biocon shares down as board approves biologics unit merger in $5.5 billion deal; to acquire stake held by Serum, Mylan

Shares of Biocon were trading in the red on Monday, December 8, after the biotechnology major said it will fully integrate Biocon Biologics with itself, in a deal valuing the biologics unit at $5.5 billion.

Intra-day, the stock slumped as much as 2.08% to a low of ₹384.50 per equity share on the National Stock Exchange (NSE). At around 1:43 pm, the scrip was trading 1.90% lower at ₹385.20 apiece.

The scrip has lost over 2% in the past week but gained more than 1% over the month. On a year-to-date basis, it has advanced above 4%.

As part of the transaction, Biocon will acquire the remaining stake in Biocon Biologics Ltd from Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine LLP through a share swap, valuing Biocon Biologics at $5.5 billion, the Bengaluru-based company said in a regulatory filing on Saturday.

The share-swap ratio has been fixed at 70.28 Biocon shares for every 100 Biocon Biologics shares, at a share price of ₹405.78 per Biocon share, it added.

Further, Biocon will acquire the residual stake held by Mylan Inc (Viatris) for a total consideration of $815 million, of which $400 million will be payable in cash and $415 million through a share swap, it added.

Biocon is constituting a Governance Council chaired by Kiran Mazumdar-Shaw and a transition and integration management committee, led by Biocon Biologics CEO and MD Shreehas Tambe, to ensure a seamless integration.

The company said its board has also approved raising up to ₹4,500 crore in additional capital through a qualified institutional placement (QIP), subject to shareholder approval.

The proceeds of the QIP will be primarily utilised to pay the cash component to Viatris.

Commenting on the development, Kiran Mazumdar-Shaw, Executive Chairperson of Biocon, said: “The integration of Biocon Biologics into Biocon Ltd represents the next chapter in our evolution. Strategically, Biocon will be one of the few companies offering both biosimilars and generics at a global scale.”

As the only company with biosimilar insulins and generic GLP-1 peptides, Biocon is uniquely positioned to address the needs of patients living with diabetes comprehensively, she added.

"Together with our combined oncology and immunology portfolios, this creates a differentiated offering addressing the world's most pressing healthcare needs," Mazumdar-Shaw stated.

Tambe will lead the transition and integration management committee and will take over as the CEO & Managing Director of the combined business, subject to requisite approvals, he said.

This integration enables Biocon to harness the combined strengths of its generics and biosimilars businesses across countries, the firm stated.

The integration process is expected to be completed by March 31, 2026.

Following the integration and execution of the necessary documentation, receipt of approvals from the Nomination & Remuneration Committee and the Board, Tambe will assume the role of the CEO & Managing Director, and Kedar Upadhye will take on the role of Chief Financial Officer of the combined business.

Siddharth Mittal, CEO & Managing Director of Biocon Ltd, will transition into a leadership role within the Group, the company stated.

Biocon has a total market capitalisation of ₹51,346.09 crore, as of December 8, 2025, according to data on the NSE.