Newsletter
Biocon is planning to merge its biosimilars arm, Biocon Biologics, with the parent in a deal that could value the unit at around $4.5 billion. The move marks a shift from its earlier plan to list the biologics unit separately through an IPO.
The why: Chairperson Kiran Mazumdar-Shaw earlier said the company was exploring multiple options including an IPO, merger, or share swap after its biologics IPO valuation came under pressure due to acquisition-related debt.
“The valuation we were trying to get for the IPO was under pressure because of the acquisition debt,” she said, adding that Morgan Stanley has been brought in to advise on the best value-creation route.
What it means for the company: a merger would simplify Biocon’s structure, reduce overlap, and potentially improve investor visibility into its growing biosimilars business.
It could also be the quickest route to unlocking shareholder value, especially amid volatile market conditions that make a large IPO difficult.
