Biocon Limited has completed the acquisition of Optionally Convertible Redeemable Non-Cumulative Preference Shares (OCRPS) worth ₹3,153.44 crore in two of its wholly owned subsidiaries on March 03, 2026. The pharmaceutical major disclosed this transaction under Regulation 30 of the SEBI Listing Regulations to support the ongoing business and working capital requirements of its subsidiaries.

Transaction Overview

The company acquired preference shares in two subsidiaries through separate transactions completed on the same day:

Subsidiary Details and Performance

Biocon Biosphere Limited (BBSL) was incorporated on December 24, 2019, and operates in pharmaceutical manufacturing of API and generic formulations through greenfield facilities in Vizag and Bengaluru. The company has shown significant growth trajectory:

Biocon Pharma Limited (BPL) was incorporated on October 31, 2014, and focuses on development and manufacture of generic formulations for global markets, particularly the United States, Europe, and Rest of the World markets. BPL has established formulations manufacturing facility for oral solid dosages at Bengaluru:

Transaction Structure and Purpose

For Biocon Biosphere Limited, the total consideration of ₹1,153.44 crore comprises:

• Cash consideration: ₹200 crore
• Conversion of existing loan with accrued interest: ₹953.44 crore

For Biocon Pharma Limited, the entire consideration of ₹2,000 crore was paid in cash.

The investments are specifically intended to support:

• Ongoing business requirements
• Working capital needs
• Capital expenditure requirements
• General corporate purposes

Regulatory Compliance

Both transactions fall within the ambit of related party transactions but are exempt from related party transaction provisions under Regulation 23(5) of SEBI Listing Regulations as they involve transactions between a holding company and wholly owned subsidiaries. The transactions were conducted at arm's length basis, and no governmental or regulatory approvals were required for completion.

Following these acquisitions, Biocon maintains 100% shareholding in both subsidiaries across equity shares and preference shares. The company has confirmed that promoters, promoter groups, or group companies have no additional interest in either subsidiary beyond the holding company relationship.

Biocon Limited has officially obtained approval from the U.S. FDA for its Liraglutide Injection, 18 mg/3 mL (6 mg/mL) single-patient-use prefilled pens (gSaxenda®) for chronic weight management. The drug-device combination formulation is indicated as an adjunct to a reduced-calorie diet and increased physical activity for treating chronic weight management.

FDA Approval Confirmation

The approval represents a significant regulatory milestone for Biocon's complex formulation capabilities. Liraglutide is a synthetic analog of GLP-1 peptide administered as a once-daily injection, originally approved for medical use in the European Union in 2009 and in the United States in 2010 for diabetes treatment.

Market Opportunity and Strategic Impact

According to IQVIA MAT December 2025, the total addressable market opportunity for GLP-1 in weight loss in the U.S. was US $127 million. GLP-1 receptor agonists have emerged as one of the fastest growing therapeutic classes globally, driven by rising prevalence of obesity and metabolic disorders, strong clinical outcomes, and increasing physician adoption.

Siddharth Mittal, Chief Executive Officer and Managing Director of Biocon Ltd, stated that this approval marks a defining milestone for the company, validating their scientific depth and vertically integrated development and manufacturing platform. He emphasized the company's commitment to commercializing Liraglutide at the earliest to ensure U.S. patients benefit from a high-quality, affordable treatment option.

About GLP-1 and Liraglutide

Glucagon-like peptide-1 (GLP-1) medications help lower blood sugar levels and promote weight loss. These physiological hormones have multiple actions on glucose, mediated by GLP-1 receptors released from gut enteroendocrine cells. They control meal-related glycemic excursions through augmentation of insulin and inhibition of glucagon secretion, while also inhibiting gastric emptying and food intake actions.

Liraglutide was specifically approved by the U.S. FDA in 2014 for adults who are either obese or overweight with at least one weight-related condition. In 2019, it became the first non-insulin drug approved to treat type 2 diabetes in children since metformin was approved in 2000.

Company Profile

Biocon Limited, publicly listed in 2004, is an innovation-led global biopharmaceuticals company committed to enhancing affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune diseases. The company has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets, as well as generic formulations in the US, Europe and key emerging markets.