Biocon considers selling its $1.5 billion generic API company

15 Dec 2023 , 02:37 PM

According to news report, Biocon is considering selling its generic active pharmaceutical ingredient (API) business, which is valued at approximately $1.5 billion, in order to lower its total debt. However, the company has not yet taken any significant steps in this regard.

‘Discussions with investment banks have taken place but the plan (for sale of generic API business) is still on the drawing board,’ according to the report.

Once Biocon’s cornerstone, the generic API business has seen a decline in its contributions to the company’s consolidated financials over time as the company has made strategic moves to realize its goal of becoming a key player in the global biosimilars market. The biosimilar business accounted for over half of Biocon’s Rs 11,550 crore top line in 2022–2023.

In November of last year, the Kiran Mazumdar-led company took a huge wager on biosimilars when it paid $3.34 billion to acquire a portfolio of medications from international pharmaceutical giant Viatris.

Debt from both Biocon Ltd. and its biosimilars division, Biocon Biologics, was used to finance that transaction. To finance the acquisition, Biocon Biologics obtained loans totaling $1.2 billion.

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