Biocon nears full integration of biologics business after Mylan buyback

The Bengaluru-based company said on January 14 that it had increased ₹4,150 crore ($460 million) through qualified institutional sales (QIP) shares to acquire Mylan Inc’s (Viatris) stake in the subsidiary. Days later, it announced that it had completed the purchase of the remaining shares of BBL from Mylan for $200 million in cash, increasing its stake to over 98%.

Biocon’s board of directors on Thursday gave in-principle approval to acquire the remaining 2% stake in BBL from employees and other minority shareholders who hold or will hold BBL shares pursuant to exercise of stock options.

“The businesses are in the process of coming together and by the end of this quarter ending March 31, 2026, we will complete the integration process and transition to a single Biocon,” Tambe told Mint in an interview.

In June, Biocon increased its stake in BBL from 71% to 79% after closing structured debt instruments. In December, it announced the full integration of the subsidiary after months of talks about a potential listing or merger. The deal, which valued BBL at $5.5 billion, was described by Biocon as the option that added the most value.

Last year, Biocon focused on cleaning up its balance sheet and improving its consolidated debt-to-EBITDA ratio, which currently stands at 2.5x from 4x in FY24. Tambe said the biopharmaceutical giant is looking at a robust pipeline of GLP-1s as well as biosimilars in the next fiscal year and beyond, and its debt-to-equity ratio is expected to approach 2x and below over time.

EBITDA represents earnings before interest, taxes, depreciation, and amortization, and the debt-to-EBITDA ratio shows how easily a company can pay off its debt. The higher the ratio, the more difficult it is for the company to repay its debts.

Biocon acquired Viatris’ biosimilar business for $3.3 billion in November 2022, which increased its debt. The company still has approximately $1.15 billion in net debt on its books.

However, a cleaner balance sheet after Biocon clears structured debt in June 2025 will support its profit before tax (PBT) from the next fiscal. The company had upgraded ₹4,500 crore ($507.7 million) through QIP in May for a commercial paper that adds structured debt obligations with Goldman Sachs and Kotak Mahindra Bank, as well as annualized interest cost. ₹300 crore.

“…we are committed to reducing debt and deleveraging the balance sheet, and that’s exactly what you’re increasingly seeing us do,” Tambe said.

Biocon shares closed up 0.81% ₹378.10 on the National Stock Exchange on Friday.

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Biocon’s biologics business, its biggest growth driver, introduced three new biosimilar oncology drugs at the 2026 JP Morgan Healthcare Conference in January: Trastuzumab/Hyaluronidase (Herceptin SC/Herceptin HYLECTA), Nivolumab (Opdivo) and Pembrolizumab (Keytruda).

These new drugs are among the top oncology biologics scheduled to lose exclusivity in the next five years, and Keytruda will be the world’s best-selling drug by 2023. Biocon plans to launch these products in the first wave of market formation, Tambe said.

These drugs will join BBL’s existing portfolio of 17 oncology drugs. Its oncology portfolio, including undisclosed products, represents a $75 billion market opportunity, the company said in a press release in January.

“We aim to launch one product every year from now until 2030,” Tambe said.

On the generic drug front, the company is investing in its GLP-1 pipeline. It increased revenue in the third quarter by launching Liraglutide in several European Union markets (EU) and plans to launch Semaglutide, which is coming off patent, in many emerging markets this year. Tambe said the company has already signed a supply agreement with Ajanta Pharma for several Asian and African markets and is also exploring partnerships for the Indian market.

GLP-1, or glucagon-like peptide-1, is a hormone that regulates blood sugar; GLP-1-based drugs are used to treat diabetes and obesity.

In the October-December quarter, Biocon’s consolidated revenue increased by 11% year-on-year. ₹4,290 crore and EBITDA up 21% ₹951 crore. EBITDA margin increased from 26% to 29% in 3Q25. Net profit has increased so far ₹144 crore, from ₹25 crore in Q1 25.

The biology arm reported revenue of: ₹2,497 crore with EBITDA up 9% from previous year ₹700 crore, up 44%, driven by focus on high-margin markets.

Generic pharmaceutical industry revenue increased by 24% compared to the previous year ₹851 crore during the quarter, rising 10% sequentially following GLP-1 launches in EU markets.