Biocon Announces $1.17 Billion BBL Acquisition, Maintains ICRA [AA] Rating

Biocon Limited , a prominent player in the biopharmaceutical industry, has announced a major strategic acquisition that will make Biocon Biologics Limited (BBL) its wholly-owned subsidiary. The company has also received credit rating reaffirmation from ICRA Limited, maintaining its strong financial standing.

Major Acquisition Announcement

Biocon has announced its plan to acquire minority stakes held by Mylan Inc., Serum Institute Life Sciences, Tata Capital, and Activ Pine in BBL. The transaction details are outlined below:

Parameter:	Details
Total Transaction Value:	$1.17 billion
Cash Payment to Mylan:	$400.00 million
Share Swap Value:	$773.00 million (₹6,950.00 crores)
Biocon Shares Issued:	171.30 million shares
Share Price Basis:	₹405.78 per share

Funding Structure

The acquisition will be funded through a carefully structured approach:

Funding Component:	Amount	Purpose
Immediate Cash Payment:	$200.00 million (₹1,800.00 crores)	Commercial Paper funding
Deferred Cash Payment:	$200.00 million (₹1,800.00 crores)	QIP proceeds
Total QIP Size:	₹4,500.00 crores	CP repayment and remaining cash
Share Swap Ratios:	70.28:100 (SILS, Tata, Activ Pine)	BBL to Biocon shares
Mylan Swap Ratio:	61.70:100	BBL to Biocon shares

Strategic Rationale

The acquisition is expected to deliver significant strategic benefits:

Corporate Structure Simplification: Eliminates holding company discount for Biocon
Operational Control: Full control over largest revenue contributor (58% of consolidated revenues)
Synergy Realization: Expected benefits across manufacturing, procurement, and global distribution
Debt Restructuring: Edelweiss structured debt to be repaid by January 31, 2026

Credit Rating Reaffirmation

ICRA Limited has reaffirmed Biocon's credit ratings for long-term/short-term unallocated facilities:

Rating Component:	Current Rating	Amount
Long-term Rating:	ICRA [AA] (Stable)	₹450.00 crores
Short-term Rating:	ICRA A1+	₹450.00 crores
Rating Date:	December 16, 2025	-

Financial Impact Assessment

ICRA's analysis indicates the transaction values BBL at $5.50 billion equity value ($6.60 billion enterprise value). Key financial implications include:

Leverage Improvement: Consolidated leverage expected to reduce as structured debt gets repaid
Liquidity Management: Critical monitoring of CP repayment following successful QIP
Debt Metrics: Adjusted net debt unlikely to alter materially as QIP proceeds are earmarked

Corporate Governance

Biocon Limited has fulfilled its regulatory obligations by informing stock exchanges about these developments under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has been filed with both BSE Limited and National Stock Exchange of India Limited.

Market Positioning

The acquisition strengthens Biocon's position in the biosimilars market, with BBL having received approval for 11 biosimilars across regulated and emerging markets. The company plans to launch five additional biosimilars, further expanding its product portfolio and market reach.

This strategic move represents a significant step in Biocon's evolution, positioning the company for enhanced operational efficiency and improved financial metrics while maintaining strong credit ratings.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.73%	+2.42%	+0.05%	+13.24%	+14.79%	-17.95%

Biocon Biologics Ltd (BBL), a subsidiary of Biocon Ltd, has achieved a significant milestone in its global expansion strategy. The company recently received approval from Health Canada for Yesintek™ and Yesintek™ I.V., biosimilars to Stelara® (ustekinumab).

Key Highlights

Approval Date: October 17, 2025
Commercial Availability: Mid-October 2025
Indications: Treatment of moderate to severe plaque psoriasis, active psoriatic arthritis, moderately to severely active Crohn's disease, and ulcerative colitis

Product Details

Product	Formulation	Strengths
Yesintek	Subcutaneous injection	45 mg/0.5ml (prefilled syringe and vial), 90 mg/ml (prefilled syringe)
Yesintek I.V.	Intravenous solution	130 mg/26mL (5mg/mL)

Market Impact

This approval marks Biocon Biologics' entry into the Canadian market, following its successful launch in the United States. The expansion strengthens the company's presence in North America and enhances its immunology portfolio.

Shreehas Tambe, CEO & Managing Director of Biocon Biologics, emphasized the significance of this approval, stating, "Health Canada's approval of Yesintek™ marks a significant milestone in our mission to expand global access to high-quality biosimilars."

Patient Support

Biocon Biologics plans to make Yesintek available through the My Biocon Biologics™ patient support program, which will provide assistance to individuals prescribed with the therapy.

Market Strategy

Ramy Ayad, Head of Canada at Biocon Biologics, highlighted the company's commitment to advancing biosimilar adoption in Canada. The strategy aims to improve patient outcomes and deliver meaningful savings to the healthcare ecosystem by expanding access in both public and private markets.

Broader Impact

This approval aligns with Biocon Biologics' mission to transform healthcare and improve lives globally. The company has already commercialized 10 biosimilars across 120+ countries, serving over 6 million patients. With a pipeline of 20 biosimilar assets, Biocon Biologics continues to focus on key therapeutic areas including diabetology, oncology, immunology, and ophthalmology.

As Biocon Biologics continues to expand its global footprint, this latest approval in Canada represents a significant step forward in the company's growth strategy and its commitment to providing affordable access to high-quality biosimilars worldwide.