Biocon consolidates businesses, forecasts accelerated growth

Biocon Limited has outlined a strategic consolidation of its Biocon Biologics business with the parent company, aiming to simplify its corporate structure and drive value maximization. The consolidation involves the acquisition of minority shareholder stakes in Biocon Biologics, with a swap ratio of BL shares for BBL shares, and a cash consideration to Viatris. This transaction, expected to be completed by Q4 FY2026, is designed to create a differentiated portfolio offering that includes biosimilars, insulins, peptides, and complex generics.

The company anticipates significant benefits, including a larger balance sheet, improved financial metrics, and operational synergies through resource consolidation. The Net Debt/EBITDA is projected to reduce to 2.5x by H1 FY26, down from 4.3x in FY23, driven by a systemic debt reduction plan and improved EBITDA performance. Annual interest cost savings are estimated at ₹300 Cr due to deleveraging. Biocon also reports that major investments in capacities and infrastructure across the Biocon Group are largely complete, positioning the company to meet demand for the next five-plus years.

Biocon’s strategy includes leveraging a global commercial infrastructure to expand its presence in new and existing markets, offering a larger basket of products. The company boasts a comprehensive portfolio with 30+ biosimilars, peptides, and complex generics, and is on track to launch five biosimilars and key GLP-1s within 18 months, strengthening its position as a leader in key markets.