Biocon Biologics completes acquisition of global biosimilars business of Viatris

Biocon Limited informed that its subsidiary Biocon Biologics Limited has successfully completed its multi-billion-dollar acquisition of the global biosimilars business of its partner Viatris Inc.

The company has received all applicable approvals from key global regulators. This includes, the Competition Commission of India, the U.S. Federal Trade Commission, the Reserve Bank of India, and its investors.

From the effective closing date, Biocon Biologics will recognize the combined revenue and associated profits from acquired products. This will be a step up from the existing profit-sharing arrangement.

Following this acquisition, Biocon Biologics will have direct commercial capabilities and supporting infrastructure in the advanced markets and several emerging markets. The acquisition aims to bring the company closer to patients, customers, and payors.

At the conclusion of the deal, Biocon Biologics will have full ownership of Viatris’ collaboration assets namely, bBevacizumab, bTrastuzumab, bAspart, bPegfilgrastim, bGlargine, bPertuzumab, and bGlargine 300U. Further, it will also benefit from Viatris’ rights for the in-licensed immunology products of bEtanercept and bAdalimumab.

Biocon Biologics has issued USD 1 billion Compulsorily Convertible Preference Shares (CCPS) as consideration. This is equivalent to an equity stake of about 12.9% on a fully diluted basis. It also made an upfront cash payment of USD 2 billion to Viatris.

For funding the upfront payment, Biocon Biologics has secured USD 1.2 billion in Sustainability Linked Loan (SLL), while the balance has been funded through other sources.

On completion of Viatris and Serum transactions, Biocon Limited will hold nearly 68% stake in Biocon Biologics.