Biocon is weighing a potential merger of its biosimilars arm, Biocon Biologics, with the parent company, executive chairperson Kiran Mazumdar-Shaw has told Moneycontrol in an interview, putting IPO plans on hold even as it prepares for a fundraise.
India’s leading biopharmaceutical company was looking to launch Biocon Biologics' initial public offering by March 2026, but volatile global markets and the company's pivot to unlock value from its expanding insulin and GLP-1 portfolio seem to have changed the plan.
“The IPO market is not very predictable right now,” Biocon and Biocon Biologics executive chairperson Kiran Mazumdar-Shaw told Moneycontrol in an interview on May 14 evening. “If we are not going to get value for an IPO, then why should we do it? If a merger is a better option, we will do a merger.”
“We are just being transparent,” she said. “If things suddenly change and it makes it very attractive to have an IPO, we will have an IPO. Otherwise, we will merge.”
The company has formed a board committee to evaluate all strategic options, including a merger, within a few months.
Fund injection
Biocon Biologics has already initiated the process to raise up to Rs 4,500 crore through a combination of qualified institutional placement (QIP) and private placements.
The money will be used to retire structured venture debt and strengthen the balance sheet.
The company aims to close the fundraising within the three to four months, Mazumdar-Shaw said.
“Now that we are on a strong growth trajectory, why should we have the overhang of structured debt?” she said. “If we convert that venture debt into promoter equity, you have a much healthier balance sheet.”
Biocon has a net debt of around $1.2 billion, which excludes structured instruments.
FY26: A year of acceleration
For the March quarter, Biocon reported a 20 percent year-on-year rise in revenue at Rs 8,506 crore, while net profit surged 22 percent to Rs 159.4 crore.
For the full year, revenue came in at Rs 32,554 crore, up 17 percent, and net profit was up 2 percent at Rs 5,654 crore.
“FY25 itself is an inflection year and FY26 will be an acceleration year,” Mazumdar-Shaw said. “We are reaping the benefits of all the investments we have made.”
The company’s biosimilars business, led by Biocon Biologics, recorded 15 percent growth in FY25, with four biosimilars crossing $200 million in annual sales.
Biocon’s insulin portfolio, bolstered by recent capacity expansion in Malaysia, is seeing a surge in global demand.
“We are a very dominant insulin company,” Mazumdar-Shaw said. “We’ve just doubled our capacity in Malaysia. What adds to it is that we have GLP-1s, which nobody else has.”
GLP-1 and insulin
Biocon is the only global company with end-to-end capabilities in both insulins and GLP-1 weight loss drugs, including drug substance, drug product, and device manufacturing.
“GLP-1s are not just about making the drug substance,” she said. “You need IP-protected devices, fill-finish capabilities, and vertical integration. Because of our insulin expertise, we have an advantage.”
GLP-1 drugs mimic a natural hormone, glucagon-like peptide-1, in the body and help regulate blood sugar levels and potentially aid weight loss. The GLP-1 market was valued at $49.3 billion in 2024.
The company launched liraglutide in the UK and plans to launch semaglutide in emerging markets by the end of FY26. Mazumdar-Shaw said Biocon is already seeing strong interest from potential partners across geographies.
“We are looking at partnerships in many countries where others are strong,” she said. “This is a few billion-dollar opportunity.”
Both liraglutide and semaglutide are GLP-1 drugs used in the treatment of type 2 diabetes and chronic obesity. Liraglutide patents have ended in most markets, while those of semaglutide will expire in India and many other emerging countries in 2026, opening a potentially huge market for companies such as Biocon.
Trump policy, a tailwind, not a threat
Biocon chairperson is also optimistic about US President Donald Trump’s proposed “Most Favoured Nation” (MFN) pricing policy.
“He clearly said that the developed world needs to be equalised,” she said. “He said, developing world having a different price, I don’t mind, but why should a developed world have a different price?”
Generics and biosimilars, Biocon’s core offerings, are unlikely to be affected by Trump’s pharma pricing plan.
“If you look at the price of generics and biosimilars in the US and Europe, they are more or less the same,” she said. “This helps us.”
She also welcomed the American president’s push to eliminate middlemen such as pharmacy benefit managers (PBMs), which can open direct access to Medicare and Medicaid.
“That’s how we will benefit,” she said. “If manufacturers can directly sell to Medicare, it’s a big opportunity.”
Medicare and Medicaid are US government-run programmes that provide health insurance but target different populations and services.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
