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Exclusive | Biocon in talks with Mylan to merge biosimilar businesses, plans IPO after merger: Sources

xxBiocon and Mylan are in advanced talks for combining their biosimilar businesses to create a large company in which Biocon seeks to hold a controlling majority stake, sources told Moneycontrol

December 09, 2021 / 09:00 AM IST
Representative Image (Source: ShutterStock)

Representative Image (Source: ShutterStock)

Biocon is in talks with Mylan for a merger of Biocon Biologics with Mylan’s biosimilar business to achieve scale and unlock value, sources with direct knowledge tell Moneycontrol. The merged entity to look for an initial public offering (IPO) seeking a valuation of over $10 billion in future, sources suggest.

Biocon and Mylan are in advanced talks for combining their biosimilar businesses to create a large company in which Biocon seeks to hold a controlling majority stake, sources share with Moneycontrol. Biocon may look at buying out stake from Mylan to hold majority stake as part of the deal construct.

Mylan and Biocon already have a business relationship in the biosimilar business as Biocon and Mylan are exclusive partners on a broad portfolio of biosimilars and insulin analogues. For Mylan the deal may provide the much needed funds as Biocon looks to hold a controlling stake in the merged biosimilar business and may buy additional stake from Mylan as part of the deal.

Biocon has unlocked value in Biocon Biologics through several rounds of capital raise over the past few years. The last fund raise values Biocon Biologics at around $5 billion, this deal not only gives scale to the business but merger valuation to unlock more value in the biosimilar vertical. Next step of value unlocking could be through an eventual IPO of the merged company.

Moneycontrol sent e-mail queries to both the companies. The Biocon spokesperson said, “We would not like to comment on market rumours and speculation.”

A Mylan official spokesperson said, “We don’t comment on market rumours and speculation.”

Biocon Biologics is a subsidiary of Biocon in which it recently offered 15 percent stake to Serum Institute Life Sciences at a post-money valuation of $4.9 billion as part of a vaccine alliance deal.
Nisha Poddar is an Editor-M&A, CNBC-TV18
first published: Dec 9, 2021 09:00 am