Biocon Ltd.’s Managing Director said the company’s board has not taken any action yet regarding the potential merger of Biocon Biologics Ltd. with the parent company, according to a Bloomberg update on Thursday.
This clarification comes after reports earlier suggested that Biocon was exploring a merger that could value its biosimilars arm at around $4.5 billion, while keeping the option of an IPO open.
Biocon founder and chairperson Kiran Mazumdar-Shaw had previously confirmed that multiple options were under evaluation — including an IPO, a merger, or a share-swap structure. The company is also in discussions with minority shareholders for possible share-swap or cash-plus-share arrangements, according to ET.
Shaw said Biocon appointed Morgan Stanley to advise on the best route for value creation, especially after IPO valuations came under pressure due to acquisition-related debt from Biocon Biologics’ $3.3 billion purchase of Viatris’ biosimilars business in 2022.
“We can still do an IPO…but we are waiting for Morgan Stanley to tell us the best possible option for value creation,” Shaw had said earlier.
