(MENAFN- IANS) Bengaluru, Dec 6 (IANS) Biopharmaceuticals company Biocon on Saturday announced to fully integrate its biosimilar unit Biocon Biologics as a wholly owned subsidiary in a $5.5 billion deal.

The company, in a statement, noted that it will acquire the remaining stake in Biocon Biologics from Serum Institute Life Sciences, Tata Capital Growth Fund II, and Activ Pine LLP through a share swap of 70.28 Biocon shares for every 100 Biocon Biologics shares, at a share price of Rs 405.78 per Biocon share. The deal values Biocon Biologics at $5.5 billion.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Limited, called the integration“the next chapter in our evolution”.

“Strategically, Biocon will be one of the few companies offering both biosimilars and generics at a global scale. As the only company with biosimilar insulins and generic GLP1 peptides, Biocon is uniquely positioned to comprehensively address the needs of patients living with diabetes,” Mazumdar-Shaw said in the statement.

“Together with our combined oncology and immunology portfolios, this creates a differentiated offering addressing the world's most pressing healthcare needs,” it added.

Mazumdar-Shaw also announced that Shreehas Tambe will take over as the CEO and Managing Director of the combined business.

“His 28 years of experience with the Biocon Group will be invaluable as we advance our mission to make lifesaving medicines affordable and accessible to patients worldwide,” she said.

The integration process is expected to be completed no later than March 31, 2026, the company said.

Further, Biocon noted that it will acquire the residual stake held by Mylan (Viatris) for a total consideration of $815 million, of which $400 million will be payable in cash and $415 million through a share swap of 61.70 Biocon shares for every 100 Biocon Biologics shares at a share price of Rs 405.78 per Biocon share.

It also approved raising additional capital of up to Rs 4,500 crore (USD 500 million) through Qualified Institutional Placement (QIP). The proceeds of the QIP will be largely utilised towards the cash component payable to Viatris, the statement said.

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