Biocon Biologicals’ IPO only after integrating Viatris: CEO

livemint.com:

MUMBAI : Biocon Biologics Ltd, the biosimilar arm of Biocon, will consider a listing only after it completes the integration of its Viatris portfolio, which is due by the end of March, the company’s chief executive officer Sreehas Tambe said in an interview. The company is also looking to secure US regulatory approval for Aspart (insulin biosimilar) and Bevacizumab (cancer biosimilar) before going ahead with its initial public offering, he added. Biocon Biologics had acquired Viatris’ global biosimilar portfolio for $3.34 billion in November 2022 in a cash and equity transaction.

Biocon had paid $2 billion in cash, including a $1.2 billion sustainability loan. It had also issued compulsorily convertible preference shares (CCPS) to Viatris worth around $1 billion. Now, it is in the process of fully integrating this business with itself by taking control of Viatris’ operations.

Currently, the Viatris management continues to runs parts of the business, according to the terms of agreement. Biocon Biologics has accelerated the process of integration, and is looking to integrate the Viatris portfolio within a year compared to the earlier guidance of two years, he said. The company has achieved integration milestones for the US as well as emerging markets for Viatris, and expects to complete the integration in Europea by the third quarter, and the rest by the end of FY24, Tambe said.

“Once we’ve got control, we’re also looking at a few other triggers to make sure that the business is on the right track to get the right valuations before we can talk about an IPO," he said. The triggers include delayed approvals for biosimilar (insulin) Aspart and biosimilar (oncolology) Bevacizumab. On 6 October, it had received a complete