Biocon Biologics, a subsidiary of Biocon, announced the completion of the acquisition of the $3.34 billion Viatris’ global biosimilars business.
Biocon Biologics will now recognize the combined revenue and associated profits from the acquired products, a step-up from the existing profit share arrangement.
As a part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the company valued at $1 billion, equivalent to an equity stake of at least 12.9% on a fully diluted basis, and made an upfront cash payment of $2 billion to Viatris.
To fund the upfront payment, Biocon Biologics has secured $1.2 billion of Sustainability Linked Loan (SLL). The balance has been funded through an equity infusion of $650 million by Biocon and $150 million by Serum Institute
Life Sciences (SILS).
The SLL is linked to key performance indicators such as improving biosimilars access, enhancing diversity and inclusion in the workforce; use of green power; and reduction in fresh water consumption. This is the largest SLL linked loan among pharmaceutical companies in the Asia-Pacific region.
Biocon Limited’s funding comprises $230 million from existing reserves and $420 million through mezzanine financing.
Biocon is in the process of securing investments to retire the mezzanine financing, post deal closure.
Post the conclusion of the Viatris and Serum transactions, Biocon Limited’s stake in Biocon Biologics will be 68%.
Biocon in February announced the $3.34 billion cash and equity deal to acquire global biosimilar business of Viatris.
