‘Biocon Biologics ahead of plan in integrating Viatris’
MUMBAI : Biocon Biologics Ltd, the biosimilar unit of drugmaker Biocon Ltd, has achieved a third of its post-deal integration with Viatris’s global biosimilar portfolio ahead of time and expects to focus on integrating its US and European operations in the next phase, chief executive Shreehas Tambe said, adding the company also expects to raise additional capital this year. “Earlier, we had guided two years for the whole transition. A good part is the first wave has come way ahead of plan and is a good indicator of where we are headed," Tambe said.
On Wednesday, Biocon Biologics said it had taken over the commercialization of Viatris’ biosimilar business in over 70 countries of emerging markets. Biocon Biologics closed the $3.34 billion deal to acquire the global biosimilar portfolio of Viatris in November 2022 in a mixture of cash and equity. Biocon paid $2 billion in cash, which included a $1.2 billion sustainability loan.
It also issued compulsorily convertible preference shares (CCPS) to Viatris of approximately $1 billion. The post-deal integration of the two entities was set up in three stages. In the initial stage, the integration with Viatris was focused on emerging markets.
“Following this, we will focus on value, which will be coming in from our North American operations, which will follow next. And subsequent to that would be Europe, which is not one single monolith in any way, because there are multiple countries within the EU and the free trade zone. We would transition that (Europe) as the last wave of countries," Tambe said.
Biocon Biologics is already benefiting from the deal, he added. The last quarter of FY23 reflected the benefits of the boost that Biocon Biologics received from the merger. “It was a
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